THE VALUATION PROCESS

OF MINERAL RIGHTS

Getting the most value for your mineral rights is all about weighing their current value with the expected future value. Because oil and gas prices fluctuate daily and forecasts always change, the value of your mineral rights can actually decrease. If you own mineral rights, getting a valuation of your minerals sooner rather than later is extremely important. Here are the most important factors that are considered in the valuation process for mineral rights.

1. Location

The location of your mineral rights is an important factor in the valuation process. Certain locations are known for higher mineral rights values than others. The geology and soil of the area is also important as it can affect oil and gas production. At Master Mineral Holdings we help mineral rights owners receive the highest value possible for their minerals in the Marcellus shale play around West Virginia, Pennsylvania and Ohio.

2. Net Mineral Acres

Oil is calculated by what is called a mineral acre, and this in turn determines the value of your mineral rights. The more mineral acres your land is considered to have, the more valuable the mineral rights are. It’s important to know that the Gross Mineral Acres are the total number of mineral acres in an area and the Net Mineral Acres are the amount you own. For this reason mineral rights valuations are based off of the Net Mineral Acres that are being purchased.

3. The Current Production and Pricing of Oil and Gas

You should always consider the price of oil and gas when deciding to sell your mineral rights. The oil and gas industry can be very volatile and prices can change drastically. If the cost of oil is higher than normal, your valuation of mineral rights may also be higher. Last but not least, it’s important to understand the current state of oil and gas production in your area. Whether or not your minerals are currently producing is a factor in the value of your mineral rights.

Request a Mineral Rights Offer

If you have questions about the valuation process of mineral rights or if you’re already looking for offers, please contact us today to request an offer. When it comes to buying mineral rights in the Marcellus shale play, there’s no one more professional than Master Mineral Holdings – a trusted buyer of mineral rights for over 10 years.