Because we forecast on a per well basis, your forecast does not take into account any minerals that aren’t producing a stream of royalty income. Many factors dictate the value of non-producing minerals. Some of those factors include present market conditions, the geological characteristics of your minerals, the financial health of the leasing company and the regulatory environment. Because of these varying factors, mineral buyers are hesitant to pay a premium for anything that isn’t producing.
* Before selling a substantial amount of producing or non-producing minerals, we recommend having a licensed petroleum or reservoir engineer perform a thorough analysis of your mineral acreage.