Understanding Net Mineral Acres and Net Royalty Acres
Welcome back, friends!
I find myself explaining the differences between Net Mineral Acres (NMA) and Net Royalty Acres (NRA) to a lot of my clients and for good reason. These terms are used a lot in the industry yet most owners don't know what they mean, if they own NMA or NRA, and how to use these terms correctly when speaking to potential buyers, in particular.
It can cost an interest owner hundreds if not thousands of dollars if they don't know what these terms mean. In fact, I recently encountered a professional Land Manager at a large oil and gas company that said he had never heard of Net Royalty Acres! It blew my mind (and blew the deal, but that's another story) which goes to show you how important it is to understand what these two terms mean.
To not bore you with words and long sentences with this tutorial, I decided to get creative and explain NMA and NRA in another fun infographic! If you like this one, check out our other infographics explaining Independent vs. In-House Landman, Surface, Mineral, Executive, and Royalty Rights, and What is Working Interest?
That's all there is to it! By now, you should be able to speak confidently and clearly about what you own and how to talk to buyers, should that need arise. Although this is not where the calculations end (figuring out your Division of Interest is next), it's a great place to start when educating yourself on the value of your assets.
Contact us if you need further help, we're always here to give you guidance.
Thanks for reading the VOG Blog!