There is no way to "average" but a arithmetic mean for purchase of 3/16 RI leased land may be $1000/acre from what I have seen and evaluated. But again, each property is going to be different and I assume you know about using averages and means for decision making. Also keep in mind that many operators use the minuscule Codell production to keep leases HBP. Its good business for them but sometimes its abused. The good news is that the Niobrara is a permeability trap for the Codell in many areas of Weld. Consequently the Codell driller knows exactly the potential of the Niobrara above. New COG rules being put into effect may adversely effect the smaller mineral owners. Hopefully your operator is a major player in the area.
Gary H
Bill Leinheiser said:
Thank you Gary. I appreciate your comments and thoughts These are out of the Codell formation just north of Greeley and low producing now and not much horizontal activity at present. A liability I hope not as an oil company is paying costs now i assume but I had heard around 600per acre was about average. Bill