Does anyone know of royalty interest sales since 2010? I have a number of family properties in NW Colorado to value and would much appreciate info on sales. Would like the info to include: $ per BOE-in-the-ground; 60 month net cash flow anticipated from the purchase; and discount rate applied to the cash flow stream.
Brian,
You have the right ideas for evaluation but need to add resources that can be harvested by horizontal drilling and fracking. That is what is the lion's share of value these days.
Gary L Hutchinson
Thanks Gary ... what do you think of Petroleum Listing Service for sales data on existing developed plays?
Its an auction and you will get the best of the worst prices there. Price obtained will rarely reflect fair market value however.
If you have tiny acreage or are in a fire sale situation, PLS is a clean solution. Otherwise, get a good evaluation then find the buyer that needs your land the most. Legitimate buyers don't mind paying fair value if a good presentation gets its attention.
Gary L Hutchinson