July 27, 2017

How to Value Mineral Rights

How Much do Mineral Rights Sell For?

How much do mineral rights sell for? A mineral rights appraisal is conducted in order to determine your mineral rights value. Location, size, production, oil prices, records and timing each play a crucial role in maximizing the value of your mineral royalties.

Location

Location, location, location…

Certain locations are known to fruit higher mineral rights value for oil than others. While Ferrari Energy is one of the top oil companies in Colorado, we also help landowners receive the highest value possible for their mineral rights in a handful of U.S. States, including Colorado, Oklahoma, Texas and Wyoming. Location is one of the first considerations for how to value mineral rights.

Learn More with Mineral Rights 101

Ferrari Energy - How to Value Mineral Rights

Geology

Consider your soil:

In addition to the physical location of your land, geological factors are also present. Geology is a big factor for some landowners in areas that are particularly mountainous, rocky or otherwise diverse. e.g.; natural formations of minerals which may obstruct drilling.

Mineral Acre

How to value mineral rights by mineral acre:

When determining your mineral rights value, oil is calculated by what’s known as a ‘mineral acre’. If your land is considered to have an abundance of mineral acres, you stand to receive a substantial payout for your sale. Ferrari Energy can help you better understand the “size” of your mineral rights.

Ferrari Energy - How Much do Mineral Rights Sell For?

Oil and Gas Prices

Higher gas prices = higher mineral royalties:

When researching how to value mineral rights for your land, you’ll want to consider the current cost of oil. As one of the leading oil and gas companies in Colorado, Ferrari Energy understands how volatile the industry can be. Oil and gas prices are directly correlated with the value of mineral royalties. If the cost of oil is higher than normal, your valuation of mineral rights may also be high.

Production

Producing vs. non-producing:

If you’re interested in selling mineral rights, it’s important to understand the current state of production. If your land has never been involved in mineral rights production, it will likely be valued at a lower amount than with land with previous production. Buyers will generally calculate your mineral rights value based on combination of current and projected cash flows.

Learn More About Production in Mineral Rights 101

 

how much do mineral rights sell for

Public Records

Have you sold mineral rights in the past?

Unlike a deed to a house, or a VIN verification history for a vehicle, mineral rights are not very easy to locate. Both public and private records play an important role in determining your mineral rights value. Before a value can be made on your mineral rights, the property and mineral history will be reviewed. Ferrari Energy can help you identify important records needed to properly value your mineral rights.

Learn More About How to Value Mineral Rights

Maximize Your Benefits with a Mineral Rights Appraisal

There’s no time like the present…

How to value mineral rights today to maximize your mineral royalties; current value vs. future value: Timing your purchase involves more than just oil and gas prices. The future value of your mineral rights may decline which is why it’s best to receive a valuation sooner than later. Ferrari Energy will walk you through the mineral rights appraisal process so you can begin taking advantage of your mineral royalties ASAP.

Request a Mineral Rights Appraisal

mineral rights appraisal

Be Cautious of Low Mineral Royalties

Avoid Blindly Reaching Out to Online Buyers

Thanks to the Internet, most mineral rights buyers can be easily found by looking up listings online. The problem with this approach is that all-too-often the easily discoverable  buyers offer the lowest value for your mineral rights. The reason for this is instant estimates are made for your mineral rights without proper valuation.

Request a Mineral Rights Valuation

 

Now that you understand a little more about how to value mineral rights, you’ll be able to more accurately assess how much do mineral rights sell for based on your unique situation.

Need Help Managing Your Mineral Rights?

  1. Request a consultation regarding oil and gas mineral rights for sale;
  2. Learn more about mineral royalties in our Mineral Rights 101 guide;
  3. Discover more insider-tips for how to sell your mineral rights.