The following are factors we consider when valuing your minerals, royalties and overrides:
- Historical production performance
- Reservoir characteristics
- Current gas and oil pricing
- Concentration risk (one well versus multiple wells as in a unit)
- Age of production equipment
- Future drilling possibilities
To determine the value of an interest, we begin by looking at the specific reservoir. Since oil and gas are depleting resources, every gas and oil reservoir has a rate of decline. Every reservoir has its own unique characteristics, geologically and through the gathering techniques of the operator, such as water or gas driven reserves.
Through the use of decline curve analysis, individual royalty interest amount, current oil and gas prices, as well as oil and gas future prices, we can establish a fair and equitable value for the acquisition of your mineral interest or royalty.