Valuing Mineral Rights for Transfer to LLC

What is the current thinking about establishing a valuation of mineral rights, presently unleased, prior to transferring them to an LLC or LFP?  I tried calling several companies who advertise their interest in purchasing them to see if I could get a quote.  Basically, they are not interested in buying unless the rights are leased and preferably in production.  Does the anticipated signing bonus play any role in the valuation?  Any suggestions would be helpful.

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Permalink Reply by Mike h on February 14, 2012 at 3:49am

One way of determining the value would be to look at real estate auctions in the area of the property where the mineral rights or O&G rights are being offered seperately.

Permalink Reply by Angela Smith on February 14, 2012 at 4:22am

That would be a good start, but unfortunately, I haven't seen it done in our area.

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