Locator: 47169B.
A decade ago -- maybe longer -- when I first started following the Bakken -- I tracked the value of the mineral acres based on prices paid for mineral acres, data from various sources. Then I compared that to what I thought the minerals were worth based on a number of facts and personal assumptions. I've always maintained that prices paid for Bakken mineral rights are far below what they are truly worth. But that's all in the eyes of the beholder. Just wild-ass-guesses (WAGs).
So, this I found particularly interesting. A reader occasionally sends me updates regarding offers he gets for his/her mineral rights.
This was the most recent. This data is the most recent I received. This is all from the same reader.
The reader has mineral rights in several locations in the Bakken.
In the spreadsheet below (all of the data is hidden except for three columns).
Lines 3 and 8 represent the very same property, the same section in both cases.
Note, in line 3, the landman offered $6,480 / acre for the mineral rights back in October, 2022. Despite this acreage having produced since the boom, the landman most recently offered $13,157.64 for the same parcel, May, 2024.
On October 24, 2022, WTI was going for $86.12.
On May 20, 2024, WTI was going for $81.39.
So, the price of WTI hasn't changed much since the original offer (has actually dropped a bit) and yet the offer (for a somewhat depleted parcel) is now worth more than twice what it was since the original offer.
No further comment.
Oh, one last comment. The minerals acres are in Tier 1 Bakken but not the best Bakken.
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