I have received an offer to purchase my mineral interests in Weld County, Colorado.
22 - 10 North - 63 West and in trying to make a decision to go forward, I’ve been searching for any activity in this area and if the offer of $225.00 per net acre is a fair price.
Couldn’t find any understandable info so hoping to get more insight through this forum on if I should proceed on the offer.
Thank you.
That’s in a pretty fringey area of the DJ, could turn into something, but might not. There hasn’t been a well drilled within 5 miles of that section in the last 6-7 years. I’d say it really depends on whether or not you need the money.
Thank you Bill! Don’t really need the money but appreciate your response. It’s been years of thinking… well maybe someday it will strike!
That is a very famous area that essentially started off the whole HZ shale boom. The Jake well is in the neighboring Township to the north. There are plans to get the 3D seismic study done and develop tier 2 wells with new technology. I’d say you’re correct that one day there could be a strike. For reference, usually minerals are sold for 2-3 times the going lease rates. I know that area went for much, much, much higher than that $75 p/acre. My two cents!
I drilled several tight gas wells in Weld County. At one time there were 63 rigs running in Weld County. It’s hard to find a dry hole. Don’t sell too cheap.
Hi Jason, I was offered $225.00 per net acre to purchase my mineral interests, and I have heard about the Jake well before, but that I believe was a few years ago. Is that well still producing?
Hi Rockhound!
Thank you for your response, so you think $225.00 per net acre is too cheap?
Now I’m rethinking selling at all. Maybe hold on for a little longer.
Two things, and I’m not sure if wish to disclose but how many mineral acres do you have in Weld County?
Second and may be the most helpful to your actual question. You may want to reach out to Tracy and see what her thought is. You could probably get a basic appraisal for cheap. She would also be able to tell you if it would be worth your time to get an appraisal.
Hi Goldtrust,
The net acreage is 160 and allocated differently between 5 of us, my personal net acreage is 40.
I will reach out to Tracy.
Thank You!
Hello Snook, I’ve been a landman and mineral consultant for 15 years. I have leased in Weld County in that area for many of those years. I know everything going on in this county.
The Jake Well had a great run, it is currently in TA status, it’s a possible candidate for re-development (refrac, re-shoot, etc.).
Snook do what you are comfortable with. If you think it will be a producer get more on the production side like 1/5 not 3/16. 1/5 is 20% that can add up fast. Be careful about taxes it can wreck your taxes.
I would not sell at that price. Typically O&G operators will lowball an offer. If you offer the mineral rights then remember they can move a rig on anywhere, anytime they want. Since you don’t need the cash, don’t do it.
Hi rjinkerr, Thank you for your response and in doing more research have decided not to sell!
Thank you again!
I am wondering if someone can mortgage their mineral? Instead of selling? A lawyer is extremely expensive! Good luck.
Minerals are real property, so yes, they can be mortgaged. Happens all the time.
Ok thanks. I know what I’ll be doing this week. One area I have has got to go! lol thanks sir.
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