Value Mineral Interests

Oil and Gas Leasing Help
1

Hi. Does anyone know a good way to come up with a value for interests? Short of paying for a lot of expensive appraisals, what can I do?

Thanks!

2

Mineral interest is normally valued differently based on so many factors like if it is producing mineral interest, non producing but recently leased with many using a multiple of the lease bonus, hbp which means held by production with many using a multiple of the average monthly revenue. Unproven areas are more difficult to value than developed areas with proven reserves. There is so much that can go into placing a value on mineral interest with some areas being more difficult than others and opinions vary sometimes tremendously.

3

David,

Appraisals for sale, estate decisions, medicaid, taxes, transfers, participation, business planning, etc. are all going to be different depending on the question asked. They will all have one thing in common, however, Site Specific Geologic Potential near term and long term.

4

There has to be a simple way... say for a bankruptcy petition.

5

You may only need a FARIR MARKET VALUE determination from a recognized expert. That type of value is more a function of production income, offered bonus income, and acknowledgement of some speculative value. the main ingredient is access to multiple state data and its interpretation. Contact me directly, perhaps I can help or find someone to get you what you need at a reasonable cost.


David Pierson said:

There has to be a simple way... say for a bankruptcy petition.

6

I value oil and gas mineral interests for a living, and have also acquired mineral rights via bankruptcy auctions. There might be some rules of thumb that you could use to get a very rough idea as to the value of the minerals, but I would not use rules of thumb to determine a "formal / final" value. Contact me directly if you would like.

Thomas Walker

Evans & Walker, Consulting Petroleum Engineers

7



Thomas Walker said:

I value oil and gas mineral interests for a living, and have also acquired mineral rights via bankruptcy auctions. There might be some rules of thumb that you could use to get a very rough idea as to the value of the minerals, but I would not use rules of thumb to determine a "formal / final" value. Contact me directly if you would like.

Thomas Walker

Evans & Walker, Consulting Petroleum Engineers

8

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9

Thanks.