Seems like all the action is in Weld County where we leased a 1 1/2 years ago (for far less than what is happening now). We were just contacted about some other minerals we own in Morgan County 4 N 60 W. Any thoughts on the value?
R. Jones,
True value to a lessee depends on geology, location, size, and probability of finding production. Value to a leasing company is set by the operator or operator market if you can get to it. The value determination was the same 18 months ago but you may not have recognized it then as you do now.
I have recently evaluated parcels in both counties for the same client involving multiple wells as well as advised an owner that, lacking technical information, was attempting to hold an auction between 2 companies. Not a good way to determine future value of mineral rights for negotiating a fair deal.
If you have a larger quantity of net acres, perhaps I can be of service.
I understand a bidding war can work adversly for those involved. Thanks
I’ve received multiple offers to lease and many offers over past 4 mos. to buy my mineral holdings in the NE corner of 5N 60W. The last offer to buy was about 4 times as much as the 1st, so something must be happening. Best I can tell, Morgan County is smack near the middle of the Niobrara field, as is Weld. But of course there are lots of variable factors. You can probably do a little research and learn more. I’ve read that China has paid $570m to buy 1/3 stake in Chesapeake Energy’s 800,000 leased acres in NE Colorado, which of course is also Niobrara.
Yes, Morgan County is in the middle of the Niobrara from what I can tell. Do you own in 5N 60 W and are you holding out to see what happens or have you leased? I haven't seen the same excitement regarding Morgan County and don't see a lot of permits yet. China has deep pockets from what I hear.