Reader sent me this random note. Offers from two different landmen for two different holdings:
- Williams County, section 30-153-99: $6,720 / net mineral acre
- McKenzie County, section 2-153-101: $6,666.67 / net mineral acre
I replied to the reader that landmen generally offer "xx%" of ultimate likely value.
Have had this same discussion several times with company's buying minerals from "folks who are tired of all the hassle.
ReplyDeleteIMHO- the price offered for mineral acres is near worthless compared to value of product taken to market over the 30-40 yr life of a single well
Our convo's usually end when I tell them, if they would give me,now, the $1.5 mil a well will produce, lifetime, we can talk.
Usually never hear back from them.
Agree completely. I think a lot of the offers use old, "conventional well" formulas where vertical wells are still hit and miss even in a proven field, whereas "every" Bakken well will hit oil. "Guaranteed."
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