“Information is not knowledge”
Albert Einstein
I have heard over the years that information is knowledge, but really information is meaningless without understanding. Bakken mineral owner was set up to help royalties owners like yourself turn information into understanding. You have likely seen various resources across the web providing “information” about the value of royalties in Richland County, Montana, but you are here because you still do not have an understanding. Welcome to Bakken Mineral Owner.
Low Ball Offers: We hear too many horror stories about royalty owners selling oil and gas royalties in Richland County Montana. 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.
The evaluation oil and gas royalties
I want to keep this very simple. The value of royalties in Richland County Montana is largely determined by three key factors.
What is the average of the last six months checks: Have a look at the calculator below. It will provide you with a fair range for the value of royalties in Richland County Montana. Conservatively, you can expect anywhere from three to six years. Is it possible to receive more than 6 years? Sure it is, but it will take time to find the right buyer – be prepared to contact thousands of them.
What is my well producing: Most wells in Richland these days are fairly new. As you have seen from the first check to your last check, the production rates and subsequently the amount of take home revenue you have received has declined. This is because wells come on-line at higher rates (called IP rates or “Initial Production” rates) than what they will eventually settle at. For example. Many wells in the Bakken begin producing in the hundreds of barrels of oil per day, thousands even. Over a very short time period, the pressure below the surface drops and the wells produce much less. This sharp decline in production is called the decline curve and the value of your royalties is dependent upon how steep the decline is.
How many acres are in the unit: Oil and gas investors, like with any investor type, see larger acreage positions as more attractive than others. With larger acreage positions, the investor believes there is additional benefits. The possibility of additional wells drilled being the leading attraction.
As we mentioned above, to get the highest value you will need to discount the “top dollar” websites, yet contact thousands of buyers to find the highest bid. I believe there is a better way and so I recommend the services of US Mineral Exchange. They already have a database with thousands of buyers from all over the country and have experience getting the highest values for mineral owners.
Calculating the Value of Royalties in Richland County Montana
Understanding the value of royalties in Richland County Montana can generally be calculated using the form below. Very simply, buyers of royalties in Richland County pay anywhere from 48 to 72 times your average monthly royalty income.
While this range will provide you an estimate of what you can expect to receive for your Richland oil and gas royalties, prices outside this range are certainly possible. Many factors will play a role in the valuation of your royalties.
