Top 3 Factors That Determine the Worth of Your Mineral Rights It is not very easy to estimate the worth of your mineral rights. If you want to sell off your mineral rights, it is generally the company you want to sell to that considers all the important factors. However, it can be a good idea to have yourself informed about all such aspects in order to have a better understanding of the process and get the best value for your property. Find out about the top 3 factors that determine the worth before you sell mineral rights. Geographical location An important part in value estimation is played by the spot where your mineral rights are placed. For example, mineral rights in Marcellus Shale, Haynesville Shale and other Shale Play areas are seen to have untapped and significant gas or oil reserves. In many cases, rights in these areas get higher value quotes. In addition, the closer your property is to the deposits of hydrocarbon, the greater the price that your rights will fetch. Net ownership The total number of acres that you have along with any income that you make also has an impact on the worth of your property. The Net Mineral Acres (NMA) that you have, or the tract size in acres multiplied by your ownership interest, determines the money that you will be able to make from your mineral royalties. Price of the commodities The costs of oil and gas, drilling and mechanical risks are some of the biggest issues that decide the amount that you will get when you sell mineral royalties. There is frequent fluctuation in the prices of gas and oil, and a suitable discount rate would be used. In case the market worth of the commodities is projected to come with many risks in future, the value of your rights will differ according to the projections and events into the future.
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