Finding out if your property’s mineral rights belong to you is the first step to selling this interest. If the surface rights have been separated from the mineral rights, you may not be the owner of both. Deeds, which are public record, can be obtained from your county recorder’s office, and will indicate to whom the mineral rights belong. This is also a great point to start tracking data on these rights, crucial information to attract and inform potential buyers.
ValueKnowing the market for oil and gas mineral interest will be helpful in setting a selling price. You can begin by checking the New York Mercantile Exchange for current pricing of these commodities. However, asking price for minera
This depositional and sedimentary region of Texas and New Mexico has been hot on the ticker for energy exchange in stock market action of recent months. Invested players in the Delaware Basin will recognize the stacked pay benefits that this area produces with its spread of robust oil-in-place deposits. Chevron and ExxonMobil have been recent operators to step up land and rig acquisition in these ongoing M&A deals in the Delaware Basin, with Exxon just this month making a move for a 16% bump in spending. Barometers of the oil and gas climate will mark these current trends as predictably ripe for this activity. January 2017 saw BOE prices nearly double what
When it comes to selling mineral rights, one person you will likely be dealing with is a landman. A landman/landwork is defined by the American Association of Professional Landmen (“AAPL”) the following way:
“Landwork” shall mean the actual performance or supervision of any one or more of the following functions:A. Negotiating for the acquisition or divestiture of mineral rights.B. Negotiating business agreements that provide for the exploration for and/or development of minerals.Read More
Upon the consideration of selling your oil and gas mineral rights, the first question asked is usually, “What are my mineral rights worth?” Fortunately, in this day and age, good information is available to assist in the difficult task of determining the value of your mineral rights. In a very basic scenario where a mineral owner is receiving monthly royalty income from producing wells, they may be able to receive anywhere from 36 to 72 times their average monthly income over a six-month period. However, an estimate of what your mineral rights are worth contains so many variables that a person must consider the following factors in order to evaluate an offer to purchase your mineral interest: