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What is used to evaluate properties before they are sold?

Normally, common evaluations are determined by the following:

1. Production History - (Decline Curves and Water Rates) of the Field and/or Leases

2. Operators Reputation - Some just get it done better than others.

3. Reservoir Formation - Some Reservoirs have longer production histories than others

4. Commodity Price Risk - Gas, Oil, or both - is it sour, treated, etc.

5. Future Production and Development

6. Interest Type - Royalty, Overriding Royalty, Mineral Rights and Interest, Non-Participating Royalty Interest, or Working Interest.

7. Historical Cash Flows and Averages for: 12 months, 6 months, and 3 months.

8. Tax Rates - Tax Rates for Purchase and Severance may be too high, low, or non-existent pending your state of where the interest is located, which affects a properties value and offer rate.

Normally, the information above is used to calculate current reserves with a prediction of future reserves and cash flows. The objective is to offer fair market value while addressing risks and uncertainties that may be involved in future interests and commodities prices.

If No Recovery No Fee Guarenteed

The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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