How We Value Mineral Rights

We use the following 6 criteria to value mineral rights and oil & gas royalties:
1. Location. Are your minerals in the latest shale play (such as the Permian Basin) with room for multiple stacked wells? Or do you own interest in an old conventional well that has been producing three barrels of oil a day for decades?
2. Producing vs Non-Producing Minerals. Producing minerals are generally worth more than non-producing minerals. Producing minerals have proven wells that are generating revenue on a monthly basis. non-producing minerals with poor off-set activity and a history of dry-holes will be valued much less than if they were located in a highly competitive shale play.
3. Oil and Gas Prices. When oil and gas prices drop, revenue drops and sometimes operators are unable to continue operations.
4. Productivity. Highly productive wells (and off-set wells) can increase the value of your minerals. Conversely, disappointing, unsuccessful wells and dry holes can be detrimental for your mineral valuation.
5. Lease Terms. Did you hire an oil and gas attorney to help you negotiate favorable lease terms or did you sign whatever they put in front of you? Favorable lease terms (such as a 25% royalty) favorably impact the value of the leased minerals.
6. Operator. A small number of operators are unethical and their reputation automatically devalues your minerals.
Want to know what your mineral rights are worth? Request an offer at:
bluemesaminerals.com
Sell your minerals with confidence - Blue Mesa Minerals is accredited with the Better Business Bureau (BBB). Check out our rating at: www.bbb.org/us/tx/plano/profi...

[@calvinm1866]

Awesome video. Very informative.

[@BlueMesaMinerals]

Glad it was helpful!

[@michaelbullington2939]

Very informative content, thank you. I am in need of some initial direction. My inherited mineral rights (currently leased and operated by a larger company) are located in Alberta, Canada and I live in Arizona, southwest U.S.. All I know so far is that it produces natural gas from at least one well and has consistently done so for the past 20+ years. Prior to my inheritance, the monthly royalty check was deposited into a trust. I was never made aware of the amount however, I do know that they verried significantly over the years. I intend to review all of this at the first oppurtunity. For personal reasons, I have made a confident decision to sell. What would be the initial steps required to sell? Does your company, or others you may know of, facilitate sales where the seller is located in a different country than the location of their interests?

[@BlueMesaMinerals]

Sorry for the delay! I just saw your comment. Most mineral owners live in a different county (or even state) than the location of their mineral rights. You might have a difficult time selling your share if they are owned by a trust, though. Technically you don't own them - they trust does and you receive a portion of the revenue (I'm assuming there are other beneficiaries of the trust). You might need to consult an attorney to see if you have options.

[@nathanaelmukyanga3866]

Thanks so much for your information but I have questions,what’s the average amount of mining rights for oil and gas ?

[@BlueMesaMinerals]

I'm not quite sure what you mean by the "average amount of mining rights". Are you looking for the average royalty payments? Or the average amoung of mineral rights owned? In either case, the answer varies. There is no average. Some people own a tiny amount and their royalty amounts to a few pennies each month. Others may receive $20,000 per month or more. Still, others own 100% interest in hundreds of acres, but no one has drilled a successful well, so they aren't receiving any royalties.

[@ChrisSmithFW]

Very nice video with only one point of contention. You definitely do not--without question; no doubt about it--need an oil & gas attorney to get the most favorable lease terms. An accountant may think you do but a competent and highly qualified landman can do the same and often better. Otherwise, nicely done. Remember, everyone, the Pareto Principle (80/20 rule) applies to all professions, including and especially attorneys. Finding good ones is as difficult as finding good landmen! Further, most of the very strong attorneys represent large oil & gas companies!

[@BlueMesaMinerals]

I agree with you but feel obligated to refer people to an attorney when dealing with contracts and legal issues. However, I think you can sometimes get comparable services from a landman at a reduced price and shorter timeframe (depending on the landman).

[@ChrisSmithFW]

@@BlueMesaMinerals Good point, for sure, about referring others. It's a slippery slope and certainly your personal risk is mitigated considerably when referring to a licensed attorney. Being in your position, I'd likely do the same in many instances unless, of course, I knew a strong landman with whom I've worked in the past and can vouch for his or her experience and professionalism (not solely by appearance but also in deed and fact). The competent landman keeps up with legislative title issues and often has a network of highly competent attorneys they use when interpretation issues arise. (Yes, I'm pretty certain you know these things; just mentioning them for the public record!) Thanks for the reply! Very kind of you! Keep up the good work!

[@sergioespindola446]

The link for the website is not working as it supposed to How may I contact your company?

[@BlueMesaMinerals]

Oh, thank you. Let me check and see why it isn't working. Meanwhile, you can email me at [e-mail] or call me at 214-444-8805.

[@BlueMesaMinerals]

The website was hacked but the hosting company fixed the issue. It's back up: bluemesaminerals.com.

[@toddboothbee1361]

Would you suggest that sellers avoid auctions or brokers to maximize what they are offered? I understand that doing so might be in conflict with some buyers. Cheers!

[@BlueMesaMinerals]

I don't think auctions or brokers are a bad route - it's just a different experience and the seller can expect to pay a commission (usually a percentage of the purchase price). When selling directly to the buyer, there is no cost to the seller.

[@toddboothbee1361]

@@BlueMesaMinerals I guess the amount gained in an auction would have to be large enough to make up for that percentage, especially if I can anchor the starting bid at the highest offer I've received so far. An amateur attempting to sell his or her mineral royalty interests is the stuff of absurdist comedy. Thanks again.

[@BlueMesaMinerals]

​@@toddboothbee1361 You could certainly go that route. When selling at an auction, you may be expected to draft your own deed (e.i. have your attorney draft it). I'm not sure if a broker would offer deed drafting as part of their service. The broker is unlikely to have as many eye-balls on the minerals as an auction, but that may depend on which auction service you choose.