Hello to all. I have been on this site for years. It has been a long time since I've needed some help.

I'm thinking of selling my Mineral Rights. Can anyone give me some advise on how to determine the value of Mineral Rights.


Merry Christmas and Happy New Year to All


Views: 1558

Reply to This

Replies to This Discussion

Can you do a search of County records and look for Mineral Deed sales in Butler Co. It might pay you to have a Title Co do it for you. That would tell you what they have sold for in the past and give you a good list of potential buyers.

Hey Sarah, we help people sell mineral rights and would be happy to give you our estimation of market value. 

Hi Natalie, who’s the we you mention and how do you go about getting an estimation?

CX Energy. You can email me your phone number, county/township and parcel ID, and lease status and I will respond back to you. :)  nkalmeyer@cx-energy.com

This is what I found so far. If you are not in production I have no idea, didn't check into that.
If you are in production this is what I have been told by 2 people in position to know.

Take your monthly royalty check - times 12 months - times number of years you expect the well(s) to produce.

Using this as an example $100 royalty per month x 12 months = $1,200 x 10 years (left in possible production)=

$12,000.00. Now ask yourself who would pay $12,000. Buyer will want to pay less as they will want to make a profit.

plus you will more than likely have to pay taxes on your sale plus lawyer fees to draw up a mineral deed. And there may be other expenses I'm not aware of yet.

As others have said there is a lot involved and the minerals really are only worth what someone is willing to pay for them.
If anyone knows more Please inform the rest of us. Good Luck to all. Thanks everyone for your input so far.

The only thing more I think I know is that if the seller has an interest in postponing Federal Incomes tax an the sale he/she may be able to complete a 1031 Exchange for income producing Real Estate. That requires a seller to engage a professional knowledgeable on 1031 exchanges. In the example above if the number was for example, $1,200.000 a seller may be able to convert the majority of that into income producing real estate and defer tax on gain until such time as a sale of the real estate took place years later. The benefit of owning the real estate is that it most likely will retain its value and grow whereas the mineral royalty is headed only in one direction and that is depletionville.I am not an expert.


© 2019   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service