What is a fair price for selling in North East Howard County?

I saw a post were some one was talking about getting upards of 25,000 per NMA. Is this Possible? Are there buyers at this price? that is a lot of cash, there are a lot of acres out there, my mere 462 acres is a a small amount. It just seems like a little to much, does the market support tthese type of Prices. Interested in others feed back? I know i would be given some very serious consideration to selling a portion of mine at the 20 K per NMA price range. Anything less i am with those that state it doesnt cost you to keep them. Input please

Rodney, it depends on what Block and Township your acreage is in. I have sent you a friend request, feel free to message me.

462 acres is not a small amount. I control 480 acres but also own the surface, so I am not a seller unless they want to buy the farm too. If you decide to sell, I strongly advise getting expert legal advice. There are some people on here that brag about not needing a lawyer but a few hours of legal work is a small price to pay at the numbers you are looking at. If you do sell, tell them you will meet them and trade the conveyance for a cashier's check or wait for them to wire the money to your bank account. Even if you don't live in Texas, the travel expense is small compared to the size of the deal.

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We leased our land for 5000 nma to two oil companys
1 horizontal
1 vertical

I've not heard of $25,000 per acre. think most of the higher prices are taking place in Western Howard County with multiple permits and new wells in the sections. I know we are just buying/leasing in Western Howard.

Rodney, depending on the location of the acreage, royalty burden in the lease, Operator, and nearby development, $10k an NMA may be possible IF and only IF you own all of the royalty and the minerals. North East Howard County isn't the most sought after acreage just because of the geology there, so those numbers are going to be a real stretch. However, what most people fail to realize is that they don't own all of the royalty associated with their minerals. In the 1950's there was a 7 year drought in West Texas. At the same time there was an oil boom going on. Most of the ranchers and farmers in the area did anything and everything possible to keep their land during the drought and one of the ways they did that was by selling portions of the royalty, while retaining the minerals. This is confusing to a lot of people because they lease their Net Mineral Acres (NMA), but get royalty payments based on their Net Royalty Acres (NRA) and NRA is what brings value in a sale. An easy way to explain it is this, Net Mineral Acres earn you a lease bonus, Net Royalty Acres earn you production payments, otherwise known as a royalty check. If most of the NRA's have been sold over the years, and A LOT were sold in the 1950's, then the NMA become nearly worthless because there is no income producing potential outside of signing a lease every few years. I'm working on a project right now where an owner has 40 NMA, but he only owns 8 NRA. He signed a lease for 40 acres and got paid a lease bonus for 40 acres. In his mind he owns 40 acres, which technically he does but it's basically just a shell with nothing inside. He's already extracted the value from his acreage by signing a lease. He will never get an offer for like what you are describing because he's unaware that his parents sold most of the royalty way back when, so he only owns the income potential of 4 NMA, not 40.

There are form letters going out to mineral owners everyday with HUGE dollar numbers on them. In the not so fine print, most of them say that a check of title is required and the value may be revised up or down. This is because they don't check the title first, so they don't know exactly how many NRA you own, NMA is basically irrelevant. It's not exactly bait and switch but it sure does crowd the line.

This is a really confusing subject, but I hope it's given you some insight.

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I found your explanation of NMA and NRA interesting, i have never heard it explained that way.

How do you find out the NRA, every time in the past three was a well we recieved payment for production. I would assume we hold the NMA, as well as NRA, how would I find out

You would need to have title ran from patent. In Texas, it’s a very common occurance for mineral owners to start selling off parts of their Royalty as early as the 1930s. You would need to hire a landman run title to find your title chain and find your exact NMA and NRA