Mineral appraisal is a highly specialized sub-discipline of valuation services and is necessary for getting the most value when transacting or leasing your mineral rights.
Why Would a Mineral Owner Need a Mineral Appraisal?
To get the most value when selling their mineral rights (usually requires an Fair Market value appraisal)
After selling their minerals and filing long-term capital gains tax with the IRS (requires a retrospective appraisal of value on the date of inheritance)
If you need a mineral appraisal for either of these reasons, please contact Petroleum Evaluations Group.
A Mineral Appraisal Can Also be Useful For:
Marital estate, divorce, pre-nuptial agreement
Tax abatement (ad valorem tax)
Non-cash charitable donations
Establish collateral for a loan
Petroleum Evaluations Group can also provide an oil and gas lease analysis. Contact us if you are receiving offers to lease your minerals and want to make sure you are getting a fair deal.
How Do We Determine the Value of Your Mineral Rights?
Our team of geologists and engineers forecast future hydrocarbon production on your properties and the commodity prices for oil, gas, condensate, and natural gas liquids. This takes into account wells that are likely to be drilled in the future. Production and price data is entered into our proprietary economic modeling software that calculates the net present value of future royalty revenue. The result is a final dollar per acre opinion of value for your mineral rights. In the appraisal world, this is referred to as the “income approach”. We also consider comparable sales of mineral rights near your property, however, when valuing mineral rights this approach is often not as accurate as the income approach.
What if You Are Uncertain What to do With Your Mineral Rights?
Should you sell your mineral rights? Should you lease your mineral rights? Should you do anything at all? Petroleum Evaluations Group can help you with a Decision Analysis Report. These reports layout the various options a mineral owner can take and provide recommendations on how to best monetize their mineral rights.
If you have questions concerning mineral appraisals, contact Petroleum Evaluation Group.
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