Are you wondering how much your royalties in Mountrail County North Dakota are worth? We speak with hundreds of mineral owners across the Bakken play who are asking the same question. We have helped many mineral owners like yourself arrive at these answers. Welcome to Bakken Mineral Owner.
Calculating the Value of Royalties in Mountrail County North Dakota
Understanding the value of royalties in Mountrail County North Dakota can generally be calculated using the form below. Very simply, buyers of royalties in Mountrail County pay anywhere from 48 to 72 times your average monthly royalty income.questions and we will contact you.
While this range will provide you an estimate of what you can expect to receive for your Mountrail oil and gas royalties, prices outside this range are certainly possible. Many factors will play a role in the valuation of your royalties. A few of these examples are provided below.
Factors investors use to evaluate oil and gas royalties
Below are some of the factors that an investor will use to determine the value of royalties in Mountrail County North Dakota.
Type of Royalty Interest: What type of royalty interest are you being paid for? There are several different types of paying interests. There are mineral interests, overriding royalty interests, and non-participating royalty interests to name a few. Depending upon which type you own will be a key factor in the offer price.
How long has the well produced: How long the well has produced will have a significant impact on the offer price. If a well is newer (Less than a couple of years old), there will be a sharp decline in production over that period. This sharp decline in production is called the decline curve and is determined by analyzing well production data in the immediate area of a new well.
Market Prices: Current oil and gas prices will play a significant role in the value of your royalties. If the oil price is $100 dollars a barrel, the value of your checks will be larger than if oil prices are $50 dollars a barrel because the production is worth more. Investors use current oil and gas prices to estimate a future income stream and generally speaking, higher oil and gas prices mean higher offers.
Surrounding Wells: The wells surrounding yours will have a big impact on what an investor pays even if those wells are no longer active. The reason is that these wells provide insight into the most likely scenario for your well. A savvy investor will check the closest wells around the well you receive royalties from and use that to predict future production expectations. For our techie readers, this is called “evaluating a type curve”.
If you want to get the highest value possible, we recommend the services of US Mineral Exchange. They have a database with thousands of buyers from all over the country and have experience getting the highest values for mineral owners.
