Hey, how do I find the true value for my mineral rights? Also has anyone heard or know about “AOG” AnthemOil& Gas, and Permico Oil Co. Thanks…
Dear Jack,
Anthem Oil & Gas is a royalty purchaser in Midland, Texas.
As to a valuation, if the minerals are in production, the estimation can be made without a lot of effort -- FOR THAT WELLBORE AND ZONE ONLY.
Purchasers often know more about the property than you do and as such, let the seller beware.
Best,
Buddy CottenHi Buddy, I know very little about this. I can send you a legal description. I looked for wellbore and zone.? Thanks for your help. Jack
Anthem has also been doing some leasing. They are generally pretty good about closing deals, but anyone who sells minerals should treat it like a real estate transaction. Get an earnest money contract, give them some time to confirm title, and close it through an escrow of some kind.
Buddy is correct. Mineral buyers are generally much more in the know than sellers. They find out about a developing play or that a well is going to be drilled in a specific section, and flood the mineral owners with low purchase offers.
Hey Wade, sounds about right thank you and Buddy for some feed back. Can I call Martin County records clerk and find out the wellbore and zone. Where from there for a market value? Thanks
Dear Jack,
Market value can be determined in many ways when the acreage is in production. However, a net present value determination is calculated by using a specific income stream -- which in this case is from a particular zone in a particular wellbore.
If I were to do a valuation on a particular property, I will limit the scope to producing reserves or income stream from the (for example) Comstock Oil -- Brutus No. 1 from the Spraberry "A" formation.
Market valuation is a complex subject matter and cannot be adequately explained in a simple web post, unless you define market value as a price arrived by a motivated seller and a motivated buyer.
Martin County will not have wellbore info. That would be the Railroad Comission.
Thanks Wade, have you any insight for pending or up coming activity in Martin County? Appreciate your input and reply.
I hate to promote my own business but there are ways to value mineral rights and I read some not so sound advice about it. NARO is going to be selling my book on mineral valuation in the near future. But I will simply send you a couple of my competitor's names.
Richard Miller (California) http://www.rjmanda.com/
Howard Mantle (Pennsylvania) http://www.hlmantleappraisals.com/
And there is a group of Mineral Appraisers formerly called American Institute of Mineral Appraisers.
Thanks T.L. I’ll check it out.
Is NARO the only place to get your book?
Hey Ben, T.L. Shields is the author of the book to be sold by NARO. Ask him and I’ll watch for the answer too.
The original is sold on Amazon as paper or Kindle
Awesome thanks