How to Value Your Mineral Rights

Much like a house, or any other type of real property, every oil and gas interest Aspen Grove Royalty evaluates comes with its own unique set of characteristics that play a vital role in the value of that interest. We put forth the effort and take the time to thoroughly evaluate and analyze every aspect of your particular interest. The purpose of the evaluation process is to develop offers that provide Aspen Grove Royalty an opportunity to make a fair and reasonable return on its investment while providing you a fair and reasonable price for your interest. Simply and quickly throwing out an offer to you based on some industry multiple, or based solely on the property's tax roll value, rarely results in a fair and reasonable price for either party.

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Though the purpose of the evaluation is easy enough the process is anything but. The offer we make to acquire your interest is ultimately based on the cash flow stream we hope the interest will generate over a period of time. Identifying, gathering, processing, and evaluating the data required to estimate future cash flows is often tedious and laborious. Most of the data gathered will often be used to prepare decline curves and discounted cash flow analysis models, which represent the largest aspect of our evaluation process.

Though by no means exhaustive the following list is a sampling of the factors that go into evaluating many oil and gas interests.

  • Type of Property
  • Type of Interest
  • Drilling Activity
  • Production Rates
  • Reservoir Characteristics
  • Completion Techniques
  • Product Mix
  • Tax Environment
  • Product Quality
  • Cash Flow
  • Product Pricing
  • Location
  • Operator / Lessee Competency
  • Terms of Existing Oil & Gas Lease

Quick Contact Info.

Physical Address:
608 North Main Street
Midland, Texas 79701

Mailing Address:
P. O. Box 10588
Midland, Texas 79702-7588

Telephone: (432)-683-6100
Toll-Free: 1-855-762-5855
Facsimile: (432)-685-3621

Email: info@aspen-grove.com