Need to sell howard county royalty interest--two athlon wells--what to ask?

General Mineral Rights Discussion
1

I need to sell 11.4+ acres of royalty interest a few miles northwest of Big Spring, with two Athlon wells producing, both about three years old. 160 acres, .016429, 23%.

Checks averaged $743 over last year. But I don’t know how much to ask. I don’t want to go through a broker and am unsure how to best contact a potential buyer, but I know I need to have an asking price. Any advice would be much appreciated—this is all new to me!

Thank you.

2

Hi Melinda—Do you have a survey description/abstract or well names?

3

NE/4 Section 19, Block 33, Township 1N, T&PRR

McCrary 19, #1 and #2… and here are the API numbers:

22736477 and 22736599

Also, lease no. 40941.

4

Melinda,

I have a party interested in this area. Please contact me at your convenience to discuss.

5

I am sure there are a lot of buyers out there and also on this site that would be interested in buying. Take your time and don’t sell too fast.

6

You should value this based on potential also, not just income.

7

So, since there are horizontal wells north of this acreage producing 200-300 barrels a day, I am told, there is “potential” that should be considered, in addition to current income? I’m learning!

Thanks for the advice, Mr. Speckman and Mr. Caldwell, I sincerely appreciate.