# Cost of oil lease
**URL:** https://www.mineralrightsforum.com/t/cost-of-oil-lease/68286
**Category:** Clarke County, MS
**Created:** [October 13, 2022, 12:02pm UTC](https://www.mineralrightsforum.com/t/cost-of-oil-lease/68286 "2022-10-13T12:02:05Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@John\_Mullett](https://www.mineralrightsforum.com/u/John_Mullett)
#### Post date: [October 13, 2022, 12:02pm UTC](https://www.mineralrightsforum.com/t/cost-of-oil-lease/68286/1 "2022-10-13T12:02:05Z")
My family has some wells on property that we own the mineral rights. We are trying to determine the value of the leases that are currently producing. We hear about 3x multiplier on the past twelve month average cash flow, in many articles. We also see a 5x multiplier in other articles. Oil prices are rising but it appears well production is declining. Any help would be appreciated on this. Thanks.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 13, 2022, 12:36pm UTC](https://www.mineralrightsforum.com/t/cost-of-oil-lease/68286/2 "2022-10-13T12:36:53Z")
It really depends upon who might be interested, current production, any possible future production, etc.
In the old days, it used to be four times that last annual royalties for oil and seven times for gas if the wells were vertical. Today, it is usually a discounted value of the production value of the well for the life of the well, but not paying for any future production. Very normal to have declining production as the wells mature.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [January 11, 2023, 12:02pm UTC](https://www.mineralrightsforum.com/t/cost-of-oil-lease/68286/3 "2023-01-11T12:02:09Z")
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