Replies to This Discussion

Permalink Reply by Janice L. Hancharick on February 27, 2012 at 6:31pm

How is "valuation" determined when so many outside factors control the market price, and development/production schedules ... e.g. world politics, the weather, growth in technology and workforce?

Permalink Reply by Bertison-George on February 28, 2012 at 2:33pm

Janice,

 

Thanks for the question.  All the factors you listed and many more go into a valuation.  A valuation is a snap shot that take into account many variables both short and long-term.  That's why it's critical for landowners who need to have them done select a firm who has a geological and oil/gas market expertise. 

 

Values do change over time based on many factors.  100 acres in the middle of Cambria county will not have the same value as 100 acres in Bradford or Washington counties.  Even if we would be talking about two locations with the same thickness and oil/gas type of reserves under each 100 acres.  The level of development, pipeline infrastructure, etc. will have a significant impact on the overall value.