Whatever they offered you, it is low because that is how the game works. Good comments below.
I am attaching a spreadsheet where you can enter your net mineral acres and whatever royalty you are getting. It is designed for the Woodford in Oklahoma, but you can get a feel for the Bakken. I chose a four year time span because that is where the majority of the production comes. I have one set of numbers for a bonus situation, the next one down for No Bonus (or a second bonus with a different royalty) and a sell option. You can change the numbers in yellow. Put in reasonable oil and gas rates for the wells in your section or nearby. The tax rate is for OK, so ND may have different incentives-not all that important to the answer. Then a I have revenues for one well, two wells, six wells, nine wells, so you can get an idea of what happens with multiple wells. Since these wells produce for many years, these are just ball park numbers for comparison and are probably low. If someone has some good Bakken decline curve numbers to insert, we can adjust the spreadsheet.
I am from the mindset of never sell your minerals, but I know that sometimes it is a necessity. Maybe only sell half. You also need to read the investor presentations from the operators in the area. It is not just the Bakken but the Three Forks and even some new horizons that you need to think about. This is a huge play that is going to last for a long time. Think about your heirs…..
2097-NMACalculationsimple.xls (43 KB)