Value of non producing mineral interests

When my petroleum geologist uncle died some 40+ yrs ago, he left his collection of mineral interests to his nephews and nieces. Over the years some of these have had good production (Thank you Uncle T), but many of them, while located in potentially good locations, have never attracted any known interest from E&O outfits. Now one of the heirs is looking to raise some cash and I'm wondering whether there is any way of valuing a mineral interest that has either never been explored or may have had a dry hole 40 yrs ago. Any thoughts would be appreciated.

John,

What area(s) are the mineral interests located? Like so many things in life, Location, Location & Location are major contributing factors.

40 Counties in 10 states, mostly west of the Mississippi.

John,

Unfortunately, I believe you will need to hire a professional appraiser(s) to gain an accurate value of your parcels. Rarely have a found one person or company that specializes in assets that cover such diverse range.

Good luck

Thanks.

In Texas, non-producing minerals have no value. Since I don't know the location of these minerals, I can not intelligently answer your question. Check it out on Google!

The heir should first ask the other heirs to buy his share so they could gain a larger control. He could put it out for the highest bidder. This would give everyone a fair chance.

Good luck,

Pat

Thanks Pat. May go that route.

Andy

John, send.me a message. I deal with mineral purchasers in most of the producing areas and I can likely get you a ballpark figure.

Pat,

In Texas non-producing interests do not have value for property tax purposes. However, plenty of non-producing interests do have potential, especially when the commodity price increases to a sufficient level to explore and produce them.

Well ... I, and maybe I am alone on this, but I don't think that one can put a value on a "potential." That's too much like a "what if." And I prefer "a sure thing."

Thanks

Pat

Since you asked a direct question, I will provide a direct answer. In my experience, if the county is known to be a decent producer, $250/acre. If not, $150/acre. But, there are exceptions, and the price may be higher or lower based on location.

Andy,

There could be huge potential in the lands that your uncle accumulated or received as compensation for work as a geologist. I'd love to look through your property schedule and let you know which ones I think may be valuable. I manage minerals for a number of companies with production in multiple basins. Please feel free to call me at my office, 214-838-2775. Rick Rowe

Rick,

Sorry. I missed this message a I was preoccupied with my potential dealings with NorthPoint Minerals.

With regard to our non producing properties, I can send you an Excel spreadsheet if you give me an email address. A I said in the original posting, one of my uncles heirs, who's a young guy starting out in a new business up in Dallas could use some cash. I'd hate to see him sell any of his producing interests but it could help him to unload some that aren't contributing to his current cash flow. I probably wouldn't be interested myself, but you never know!

rickrowe@gmail.com is my personal email account

Andy, I have clients who would be interested in the Oklahoma properties. Thanks.

tdowd@eliasbooks.com