Township 38 North, Range 73 West, 6th P.M.

I have been approached to sell royalty rights for the following:

Sec. 14: S2NE Sec. 23: NE, SENW

While I am retired, I have no particular need to sell them. But, as I am completely ignorant of how to value them, I would greatly appreciate any advice that would help me evaluate their value.

Thanks in advance.

Hi Gary: I would start by asking if you are currently receiving any royalty checks relative to your mineral rights? I can see that there are producing wells in both Sec. 14 & 23. Samson seems to be active in the area with several producing wells out of the Sussex formation. I own ORRI to the north of you. The last offer I received was based on an average monthly amount I received times 36 months. I did not sell as there is more drilling to be done in the near future (depending on crude prices). Unless you need the money, I would hang on to them. In the not too distant past, $10,000/acre was not out of the question. That will also vary depending on the outlook on future crude prices. Regards, John

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Hi John. Thank you for the very helpful feedback and advice. - Gary

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