Determining the value of oil and gas royalties in Dunn county North Dakota is a question we receive many times from mineral owners in the Bakken. Our answer is it depends on your needs.
Low Ball Offers: We hear way to many horror stories about mineral owners selling oil and gas royalties in the Bakken for pennies. Do not be fooled by “top dollar” offers. If you are contemplating selling oil and gas royalties, reach out to us. We can help you.
Estate evaluations
Often times we hear from owners or their attorneys asking how to evaluate royalties in the Bakken prior to the settlement of an estate. This is either following a death or the decision to gift royalties from one individual to another.
In circumstances like these, your attorney or CPA must be your resource. There are different rules and guidelines put forth for the valuation of mineral rights when transferring or gifting minerals and they are not necessarily easy to understand.
Seek out an attorney or CPA who specializes in transfers of this nature to ensure you are covered.
Selling
If you are considering selling your royalties, there are several important items to have handy.
1 – Location – Where is the property located? If you have your lease agreement handy, this will provide you the legal description of the property. North Dakota uses Section, Township and Range to determine the general location of a property.
2 – Check Stubs – You will need the last six months check stubs available for an oil and gas investor to evaluate. This will provide the investor with the operator, well names, net revenue interest you own and the amount the wells are producing among other things.
Take the average of the last 6 months of checks you have received. Once you have done this, you can then expect to get anywhere from 36 months to 7+ years worth of production.
How do you know if you should be receiving 36 months or many more years worth? Contact us about your specific situation.
3 – Lease agreement – Before you began receiving royalties, you signed a lease agreement. Have a copy of this available for the investor. The lease will provide the Net mineral acres leased, the exact location of the minerals, your royalty percentage and other important terms.
4 – Mineral Deed – How do you own the property? Did you inherit it or purchase it? No matter the case, it will help you to call the Dunn County courthouse and research your minerals. For a small fee they will send you the mineral deed or other document proving you own the property.
In short. BE PREPARED. Spend some time gathering up your data and present your royalties for sale in a well thought out presentation. Human nature suggests that the more a buyer thinks you know, the less they are likely to low ball you.
However, keep in mind the only value these royalties will have are the value an investor is willing to pay for them.
So it becomes a matter of contacting as many buyers as absolutely possible and being a top negotiator to achieve the highest value sales prices.
Please also be sure and visit the following post for specific calculation possibilities.
Where can I get help?
Determining the value of oil and gas royalties in Dunn County North Dakota does not need to be complicated. If you are not sure you will have the time to contact the thousands of buyers required to maximize your sales price or if you believe an experienced oil and gas professional can help you with your specific situation, please contact us immediately or visit US Mineral Exchange. US Mineral Exchange is our preferred provider when it comes to selling oil and gas royalties.
