landowner

Offer to buy royalty Lincoln Parish

Looking for input on offer to buy 50% royalty in property located immediately south of Simsboro in Lincoln Parish. Offer was $2000 acre for 50% royalty. Anyone know how this offer compares to any other recent offers in the area?

Thanks,

Views: 621

Replies to This Discussion


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 9, 2015 at 9:07

What is the royalty fraction in your lease?


landownerPermalink Reply by MAdMike on August 9, 2015 at 10:31

Skip.

3/16

Thanks,


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 9, 2015 at 10:48

Royalty is valued and sold by way of a conversion known as Royalty Acres.  One mineral acre at a one eighth royalty is one Royalty Acre.  Three sixteenth divided by one eight = 1.5.  Therefore for every mineral acre you own, you own 1.5 RA.  Depending on specific location (and south of Simsboro isn't specific enough) royalty offers of which I am aware are ranging from $2000 to $3000 per RA.  Therefore an offer between $3000 and $4500 per mineral acre would be approximately in that ball park. 

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