Thank you for your comments. My total net mineral acres in Divide County, 160N, 101W and 160N, 102W total about 150 acres. This was leased about 18 months ago for $400 per acre. I’m told the current lease rates nearby are about $1400 per acre. There are about 10 drilling permits now issued in an area between 2.5 and 6 miles from this land. The closest producing wells are about 2.5 to 3 miles away and it appears the initial test showed about 300 barrels per day from the Bakken. My remaining 4 mineral acres are in Williams County 159N, 96W and 159N, 97W. This acreage has more activity in the area and we have two producing wells with production from 100-200 barrels per day. This was leased about 2 years ago for $700 per acre. Any help with valuation would be appreciated.
charles s mallory said:
Sparky:
Establishing a value on minerals is not an easy task. You have to consider your total net mineral acres in an area, how close is a producing well to your minerals and what is the production, what is the current bonus rates for your area in regards to leasing and is your area currently leased and on what terms. I would avoid seeking a formal appraisal if possible due to the extra expense and most likely they will utilize these same methods in determining the values.