Mineral Rights Valuation

Brandon D Bolin · 2013-07-02T15:20:44Z

I currently own 25.7 mineral acres in Howard County, Texas that lies within the Wolfberry play. I have a lease that covers 5000 ft and below with a company that has just apparently started drilling (just prior to the expiration of my 3 year lease). I have been receiving offers to purchase these mineral rights from me, and I'm looking for a little guidance if possible. I have a 1/4 royalty contract in place at this time on the future production of this lease, and the initial offer of $3500/mineral acre seems low with all the activity and projections that I have been able to see/research out of this play. Since this well is currently non-producing I understand that it is more of a gamble for the company offering to purchase these rights if my logic is correct. I'm just looking to see if anyone has any insight as to what a ballpark, reasonable, and fair price per mineral acre that I should counter with would be? I was already told by the company making the offer that there is "room to negotiate" from the initial offer. Thanks for any advice that you can provide. Legal Descripton: Sec 21 Blk 34 Twn 1N There are actually 2 leases I have on this property, Surface to 5000, and 5000 and below. I'm only referencing the 5000 and below in my question becuase that it what the offer is specifically for.

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