Mineral rights and Gross Royalty Trusts ("GRT's") can have significant value. If the mineral rights lands are leased to a third party and royalties are being received, a value can be established based on a detailed assessment of the present and future revenue potential. We work with qualified consulting engineers and geologists who will typically review the area wells and provide an assessment of the future revenue potential of the property utilizing well decline curves and commodity price assumptions. If your lands are undeveloped (e.g. leased or unleased but not producing), we will undertake a market valuation which would include a review of the potential for future leasing activity and lease bonus, recent area prices for similar transactions, industry market conditions and other factors.
In the case of a valuation for estate purposes, we understand the complexities of the ownership situation and the need to deliver a valuation in a timely manner which can be relied upon by all interested parties. Our valuation methodology remains the same.
Regarding GRT's, your value can be significant, This asset is generally derived from original petroleum and natural gas leases signed in the 1950's. Subsequent owners of GRT's today (through estates or otherwise) may or may not know their value. Contact us and we can assist.