Mineral rights value in Divide County North Dakota

Mineral rights value in Divide County North Dakota

As we near the end of 2016 a lot of mineral owners consider selling mineral rights.  Before they do, mineral owners are curious about mineral rights value in Divide County North Dakota.  We work with mineral owners every day.  Our goal is to help them better understand their property.  There is so little information out there to help mineral owners.  If you are thinking about selling mineral rights or you simply want to know more, this post should help!

Basic guide to mineral rights value in Divide County North Dakota

Before we can dive into mineral rights value in Divide County North Dakota, it helps to understand some basics.   A lot of mineral owners go into the process of selling mineral rights with no idea what they are doing.  This is normal! Don’t feel like you are any different than every other mineral owner.

The first thing you need to understand is that finding the exact value is not possible.  The mineral rights value in Divide County North Dakota is based on many factors.  The price of oil, buyers, time of year, recent production in the area, operators in the area, and many other things.  More importantly, there is no public data available about mineral rights sales.  This means that there is no Zillow for mineral rights.  You simply won’t be able to see comparable properties or sales data to help figure out value.

What this means is that we can only provide mineral rights value in Divide County North Dakota on a rule of thumb basis.  We are simply giving you a ball park estimate of mineral rights value in Divide County North Dakota!

Estimate mineral rights value in Divide County North Dakota

To estimate mineral rights value in Divide County North Dakota you need to understand what stage your property is in.  Your mineral rights could be in one of three stages.  The demand for selling mineral rights in North Dakota is going to be based on which stage your property is in.  The further along your property is in the process the higher the demand.  Subsequently, this means a better price for you!  Your property will be in one of these stages:

Non-Leased / Non-producing —–>  Leased —–>  Producing

Non-Leased / Non-producing mineral rights value

These types of properties have very little demand.  You aren’t receiving oil and gas royalties each month.  There is no active lease agreement.  Buyers will not be very interested in these types of properties.  It will likely be 5-10 years before any drilling/production takes place (at a minimum).  You are likely looking at a value of $0 to a few hundred dollars per acre.

Lease mineral rights value

These types of properties have more value and more demand.  An operator has signed a lease with you so they intend to drill.  They won’t always drill but it’s interesting enough they want to give it a shot!  Buyers are interested in these properties because they may receive royalties in 5 years or less.  You are likely looking at a value of 2x to 3x the lease bonus amount you signed.  The royalty you negotiated will play a key role in value.  A 12.5% royalty will be worth significantly less than a 20% royalty.

Producing mineral rights value

Producing mineral rights value is easier to determine.  The mineral rights value in Divide County North Dakota for producing properties is 4 years to 6 years times your average monthly check.   Just take the average amount you receive each month from royalties and enter it below.  You’ll then get a quick estimate of mineral rights value in Divide County North Dakota.   Properties that are producing royalties are in high demand you will get multiple offers.

How to sell mineral rights in Divide County North Dakota

If you want to sell mineral rights in Divide County North Dakota we recommend US Mineral Exchange. They are in the industry leader in the sale of mineral rights.  Similar to listing your home on the MLS, putting your property on US Mineral Exchange will quickly get your property in front of buyers.  These buyers compete which drives up the price and ensures you get the best price possible.

Keep in mind that many mineral owners fall into a similar trap.  They decide to sell mineral rights on their own.  This ends up costing you a lot of time, and more importantly, you will make less money.   It seems counter intuitive.  Wouldn’t doing it yourself save money?  Unfortunately with mineral rights it won’t.  The reason is that you may spend weeks reaching out to mineral rights buyers.  You would have talked with less than 1% of the mineral buyers out there.   Every buyer values properties differently.  The only way to ensure you are getting the best price is to get as many buyers to review your property as possible.  This is why we recommend listing your property online with a reputable company like US Mineral Exchange who can help you get it sold for the best price.

Questions about mineral rights value in Divide County North Dakota?

If you have questions about mineral rights value in Divide County North Dakota we are here to answer your question.  Take a couple minutes and tell us about your property.   We’ll respond quickly and point you in the right direction.

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