I am in the process of putting together mineral and royalty interests that we are planning to sell. I am looking for help with valuations on producing and non producing interests in Hardin County. Any suggestions?
On mineral interests with existing production you can hire an engineer to make a reservoir study estimating the production over the potential life of the wells and discounting back to a current value. But that doesn’t mean someone would be willing to pay you that amount. Offers from mineral buyers are often based on some multiple of the last X years royalty payments. The kind of multiple your area might bring isn’t available as public information, so getting an idea of the current market could take digging in the county deed records and trying to contact recent sellers to see if they will share information with you. If there is an active market for mineral interest in your area and your contact information is available in the tax records you’ve probably been getting letters from potential buyers.
You might consider contacting the operator of the wells you are receiving royalties from and find out if they are interested in buying your minerals.
On non-producing mineral interests it’s even harder to figure out their market value, particularly if there isn’t active lease and potential for future drilling nearby.
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