How much is Selling Your Mineral Rights Worth?

This is a tricky question. It is easier if you are already leasing out your mineral rights and the lessee is actively mining it. You can expect an offer between 36 and 72 times the average of what your royalties have been over the previous six months. For example, if your checks average $100 a month, you may be offered between $3,600 to $7,200 to purchase your rights. However, other things may also be factored in such as the number of well, hold old they are, location with respect to other producing areas, and drilling prospects. The operator, current tax laws, government policies, and prevailing prices will also affect the value of your mineral rights.

In some instances, the price will go up if the area of the mineral rights is large, even if production is minimal. The reasonable buyer will add a premium for acreage. The rationale behind this is that when the area is large, there is a higher probability of uncovering new and hopefully better-producing wells in the future. This can add a significant amount to the final selling price, especially if the wells are old and there is little current production.

If the mineral rights are non-producing, meaning that there has been no effort to drill yet, then the buyer will base their calculations on other factors. These include the going lease rates in nearby areas, and if the property is currently on lease or has been in the past. Another important factor is proximity to known productive areas such as the Haynesville Shale in Louisiana or Eagle Ford Shale in Texas. According to the website of The Mineral Auction, buyers in Texas are always looking for opportunities to buy in these areas.

However, those in the know do not depend on generally known facts. Serious speculators and buyers of mineral rights make it their business to know the way the wind is blowing. As a seller, you want the benefit of this knowledge when selling your mineral rights. You can get the best offers from these buyers by offering them in reputable auction sites specializing in your particular area.

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