With low o/g market, value of net mineral acres and hold? or sell?

Hi All, Need to evaluate 350+net mineral acres divided into 8 tracts. Located in Marion Co., Illinois near (DAPL) Dakota Access Pipeline terminating between Pakota and Vernon at the pipeline hub where crude oil is transported to refineries. Last well produced 2009. Would sell total amount or tracts. Please share your thoughts on 1. value or range of values per net mineral acres (nma) and 2. sell or keep property while market is so low. Senior Citizen. No living family. Not in need of income for a few years. Thanks barrels for your input. L.Hays

Although I am familiar with the overall geology of the Illinois Basin (as a geologist with 40 years of experience in US O&G basins), I am far from an expert on industry activity and present trends in that area. I do however know that this area is not being pursued by the major oil companies since it does not have the upside reserves and unconventional potential of areas like the Permian Basin, Bakken Shale and other similar play areas.

Active operators in your area tend to be smaller players who are chasing conventional targets - normally one to two well features - instead of widespread "blanket" plays.

Groups that purchase mineral interests are looking at the long term payout and return on investment. They also are focusing on areas that have what they perceive to be some reasonable O&G potential that is tied to possible future drilling.

These groups have access to data bases and technical support (engineers and geologists) who have evaluated the potential of various areas and subsequently put a "market value" on certain areas based on the results of this analysis.

I say all this to recommend that you need to get someone who has a good understanding of the prospective targets in your area to determine what the future O&G potential may be. This then puts you on a more level playing field with the mineral buyers since you would then have a better idea of remaining O&G potential.

It is possible that there is little to no remaining potential - which of course equates to no interest by mineral buyers.

There are several on line data bases that can be used to find out more about historical wells in the Illinois Basin. I have added one below. But this only deals with historical wells and not possible future potential.

Bit it is a start to get an idea about what has happened in your area.


Rock Man, Thanks. I suspected as much. Do people just abandon mineral rights? Guessing your answer I have thought of leaving it in Trust to an O/G Museum in Parkersburg W.Va in the area where my father and grandfather were in the o/g business which included this acreage, Pennsylvania, Ohio, Indiana, W.Va. and Illinois. I now live in California and guess I feel a personal responsibility to take care of this and "find it a home". This museum already has my father's library etc. If they can't sell it someday perhaps they could just show what an abstract etc. looks like or just think I was nuts! Possibly I'm taking this too much to heart. Before the o/g market collapsed I sold other properties in W.Va. and Ohio. Thanks again. L. Hays.

Rock Man...a great "handle" for a geologist. Thanks again. Lynne Hays.

The idea of leaving your minerals to the O&G Museum in Parkersburg is a great idea! Finding this asset a "home" is the right thing to do

Rock Man, I've gained respect for your "oil patch" perspective. People just roll their eyes when I mention the museum.....the area and commodity of my roots. Your endorsement is very helpful. Many thanks. L.Hays

I had a lease on some ground in the Kinmundy-Alma area of Marion Co. Illinois, just north of Salem IL. Overal, some smaller guys put up a considerable amount of $$ to do these leases. These are not Majors. The guy did hunt me down out of Oblong, IL. There are near Robinson, IL where there is a large refinery. I don't know what to expect from this. Any ideas... Walt (Austin, TX) ■■■■■■■■■■■■■■■■■ 512-■■■■■■■■