You are here:

Oil/Gas/Buying Mineral Rights

Advertisement


Question
I am a complete novice interested in purchasing mineral and royalty interests
I am reading NARO's book on leasing;but it is directed at people who already own minerals
If you were to look at two offers of minerals on one of the internet sites where minerals are offered for sale,what calculations
would you use to determine relative value and whether or not to bid
thanks for your response

Answer
First stop should be the How Much Are My Mineral Rights Worth? article on the Mineral Hub website. Though the article is geared towards people selling, it is based on information buyers use when valuing properties they are interested in acquiring. The article is not "investment advice" per say, but the methods described are in fact used by many buyers of mineral rights. It really boils down to "location, location, location" just like real estate. The closer you are to current drilling/leasing activity, the more you'll be paying for mineral rights.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
www.mineralhub.com
The Mineral Hub  

Oil/Gas

All Answers


Answers by Expert:


Ask Experts

Volunteer


Frederick M. Scott

Expertise

Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.

Experience

I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

Organizations
National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

Publications
National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

©2016 About.com. All rights reserved.