Expert: Alan H. Coogan - 12/27/2007

Question
Thanks in advance. I have hundreds of decimal oil interest that were purchased by my grandfather and have made their way to me. Now before you get too excited they provide about $30.00 a quarter in revenue to me. Does anyone analysis and purchase these decimal units? Who are reputable names to contact? How is value determined?
Thanks again.
Kevin Miller

Answer
Dear Kevin: This web site has ads for buying mineral interests. Generally, people in the business buy these interests.  ASSUMING there is no likelihood of a new well being drilled on the premises, some folks use a "rule" of thumb, depending on interest rates. for example, current monthly income($10) X 36 or 48 months (=$360 to $480).
Yes there are petroleum engineering methods to evaluate future production based on past. You can't afford that kind of help (if you have the records)for the stated amount. My policy is just hang on to it and cash the check.
good luck,
AHC