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About Laura M. FitzGerald, CPL
Expertise
I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.

Experience
26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells

Organizations
American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)

Education/Credentials
Certified Professional Landman, attended LSU, Notary Public

You are here: Experts > Industry > Oil/Gas > Oil/Gas > Mineral Sales

Oil/Gas - Mineral Sales

Expert: Laura M. FitzGerald, CPL - 11/4/2009

Question
Am considering the sale of 65 acres of minerals in Custer County, OK. Description is

East Half (E1/2) and the Southeast Quarter of the Southwest quarter (SE1/4SW1/4) of Section 29, Township 15 North, Range 19WIM, Custer County Oklahoma

This land does have a producing gas well on it although as all are, the income is down signifiantly from 15 months ago.

Two inter-related questions
1) What would a "normal" multiplier be for considering whether or not the price per acre is reasonable based on yearly income?
2) Based on your knowledge, what would a reasonable offer be per acre - would like to have a range of low/average/high prices per acre if we choose to pursue a buyer...

Answer
Sir, let me check and see what the market value is in this area. Please email me at lfitzgerald@iliosresources.com so I can furnish you this information.

It's not as simple as just taking a multiple of the monthly production.

Can you tell me what royalty is provided for in your lease? Is it 3/16ths, 1/5th or 1/4th?
Also, what is your average monthly income?
And what is the price the gas is being sold for by the Operator?

Thank you.

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