Our mission is to help Oklahoma mineral owners receive the best value for their mineral rights.
Mineral Rights Value
The estimated value of your mineral rights is usually 2 to 3 times the current signing bonus for an oil and gas lease, but we have seen values as high as 6 to 7 times the signing bonus and as low as one-tenth signing bonuses paid. This is a simple way to roughly estimate the value of your mineral rights, but there are many factors to consider.
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These factors can be broken into two categories. First, the options and decisions you have about what you do with your oil and gas minerals or royalties. Second, those factors which are not within a mineral owner’s control. These are all important when making an informed decision about selling your mineral rights.
Mineral Rights Location and Value
The value of your oil and gas mineral rights is tied directly to the activity near your property. Mineral rights and royalties will go up or down in value with the price of oil and natural gas, however oil and gas drilling and the resulting demand for mineral rights can drive values higher. Each situation is unique, and requires industry knowledge and expertise to maximize value for your mineral rights.
Oklahoma Oil and Gas Exploration and Production
An exploration and production company selects an area it believes will be productive and acquires oil and gas leases on those mineral rights, and then they begin to drill exploratory wells. More activity usually means more money for your mineral rights, understanding if there is any activity and which company is operating directly affects the price you receive for your minerals.
If the results of a completed well are favorable, then your mineral rights become more valuable, however, poor well results, such as a dry hole will devalue royalties and mineral rights in your area.
If your mineral rights are not currently leased (open), and you have not received any recent offers to lease them, then values can be lower due to the lack of interest in your area. When companies are actively pursuing oil and gas leases in your area, there is greater potential for increased interest in your royalty income or mineral rights.
Why Does Your Oil and Gas Lease Royalty Matter?
The royalty (mineral rights owner’s share of the oil and gas produced) in your oil and gas lease is a key element in determining the value of your minerals and royalty income from mineral rights that are held by production (HBP). The royalty determines what the mineral rights owner or buyer will receive if a well is completed that produces oil, gas, or both. The mineral rights value is tied directly to the royalty in your oil and gas lease. Most offers to buy royalties or mineral rights are based on your oil and gas lease having a minimum royalty of 3/16ths (18.75%). Mineral Rights Oklahoma can easily provide you with the experience and skills to tackle all the difficult, tedious tasks, and answers to all of your questions.
In Oklahoma, from the early 1900’s through the 1980’s, the standard royalty (Mineral Rights Owner’s Share) for oil and gas lease was 1/8th (12.5%). From that time until now, the standard royalty has been 3/16ths (18.75%). Royalty percentages of 1/5th (20%) or ¼ (25%) are more common today, although offerings and availability for these higher royalty percentages are generally limited to the most productive basins in Oklahoma.
As the saying goes, a picture is worth one thousand words. Below is an example comparison of various oil and gas lease royalties, for four different mineral rights owners in the same location, and an offer for each royalty.
Bob can receive the highest cash out payment for the sale of his mineral rights because his oil and gas lease royalty will give a mineral rights buyer the highest share of production, but Faye has a royalty that is one-half of Bob’s. So, Faye can only sell her mineral rights for $500.00 per acre while Bob will receive $1000.00 per acre.
Do you need an Oklahoma mineral rights buyer? Get started today. Oklahoma Mineral Rights and Royalty can answer all your price and value questions. When you have the right information, we can buy your Oklahoma mineral rights.
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