Blog Post Offer Evaluations

How to Evaluate an Offer to Sell Your Mineral Rights — A Clear Guide for Mineral Owners

How to Evaluate an Offer to Sell Your Mineral Rights — A Clear Guide for Mineral Owners

INTRODUCTION

If you recently received an offer to sell your mineral rights, you’re not alone — mineral buyers, funds, and operators send thousands of offers every month.
But how do you know whether an offer is fair?
And how do you compare competing offers when each one uses different assumptions?

At MyMineralOptions.com, we help mineral owners review offers, understand their options, and negotiate better deals.

If you want us to analyze your offer for free, send it to:

📧 Offers@MyMineralOptions.com
📧 Valuations@MyMineralOptions.com

🟦 SECTION 1 — WHY MINERAL OFFERS VARY SO MUCH

Two buyers can look at the exact same property and give you very different prices.
This happens because buyers use different:

• Geologic assumptions

• Production forecasts

• Discount rates

• Risk tolerance

• Capital structures

• Buying strategies

Example:

Buyer A might be looking for producing income,
while Buyer B is looking for future drilling upside.

Same minerals — different goals = different prices.

🟩 SECTION 2 — THE 5 FACTORS THAT DETERMINE MINERAL VALUE

Whenever you receive an offer, understand the five main drivers behind the price:

1. PDP Value (Existing Production)

PDP = Proved Developed Producing (current wells).
Buyers calculate value based on:

• Monthly royalty income

• Decline curve type

• Operator performance

• Commodity prices

• Royalty burdens

If your minerals are producing, PDP value is usually the biggest part of your offer.

2. PUD Value (Future Drilling Locations)

PUD = Proved Undeveloped.
If you’re in an active area with:

• Permits

• Drilling rigs

• Nearby wells

• Operator development plans

…your PUD value may exceed your PDP value.

3. Geology & Target Formations

Stronger formations = higher valuations:

• Haynesville

• Bossier

• Eagle Ford

• Permian Wolfcamp

• Bakken

• Cotton Valley

Buyers pay premiums for Tier 1 rock.

➡ For geology-specific insights: Geology_Formations@MyMineralOptions.com

4. Royalty Rate & Lease Terms

A 25% royalty interest is far more valuable than a 12.5% royalty.
Other terms affecting value:

• Post-production deduction clauses

• Pugh clauses

• Depth severance

• Shut-in provisions

• Pooling terms

➡ For lease review: Leasing@MyMineralOptions.com

5. Operator Activity & Development Timeline

Minerals in an active drilling area are worth more than minerals with uncertain future development.

🟧 SECTION 3 — HOW TO READ (AND INTERPRET) A MINERAL OFFER

Mineral offers typically fall into one of three categories:

Type A — Low-Ball “Fishing” Offers

Small companies trying to buy at wholesale prices.

Characteristics:

• Very short deadlines

• Minimal information

• Pressure tactics

• Not based on engineering

These offers should always be reviewed.

Type B — Market-Value Offers

Realistic offers based on:

• Production

• Engineering

• Unit development

• Geological data

These are credible and worth comparing.

Type C — Premium Offers

Buyers sometimes pay a premium when they need:

• 1031 exchange assets

• Acreage to complete a block

• Royalty portfolio acquisitions

• Offsetting a liability

These offers can be well above market value.

🟨 SECTION 4 — QUESTIONS TO ASK ANY MINERAL BUYER

Before accepting any offer, ask:

1. How did you calculate your offer?

2. What commodity price deck did you use?

3. How many wells are you assuming?

4. Are you valuing PDP only or PUD too?

5. How long is your title review period?

6. Will you adjust price if title changes?

7. Can I sell only part of my minerals?

8. Can I keep ORRI/NPRI?

9. When will I receive funds?

10. Are there deductions or adjustments?

If you want help asking these questions:
📧 Acquisitions@MyMineralOptions.com

🟥 SECTION 5 — SHOULD YOU SELL ALL, PART, OR KEEP AN ORRI?

Not every mineral sale needs to be 100%.

Option 1 — Sell All Minerals

Maximum cash today.

Option 2 — Sell Part of Your Minerals

For example, sell 50% and keep 50%.

Option 3 — Sell Minerals but Keep an ORRI

The smartest structure for many owners:

• Maximize cash now

• Keep royalty income later

• No cost, no obligation

➡ Help structuring ORRI: Legal@MyMineralOptions.com

🟦 SECTION 6 — HOW TO KNOW IF YOUR OFFER IS FAIR (The Checklist)

✔ Compare offers from multiple buyers

✔ Request a valuation based on geology + engineering

✔ Review lease terms and royalty burdens

✔ Understand your decline curve

✔ Review operator activity

✔ Analyze future well inventory

✔ Consider your financial goals

✔ Consult a mineral specialist

Send your offer to us for a free analysis:

📧 Offers@MyMineralOptions.com
📧 Valuations@MyMineralOptions.com

🟫 SECTION 7 — WHEN SELLING MINERALS MAKES SENSE

You may want to sell when:

• You need cash now

• You are settling an estate

• You want to diversify investments

• Your minerals are undeveloped

• You received a strong premium offer

• You want to remove risk

• Your minerals are nearing Louisiana prescription deadlines

➡ For Louisiana-specific guidance: Legal@MyMineralOptions.com

Blog Post Top 10 Mistakes

Top 10 Mistakes Mineral Owners Make When Selling Their Mineral Rights (and How to Avoid Them)

Selling mineral rights can be one of the biggest financial decisions a mineral owner ever makes — yet most owners receive little information beyond what a buyer or operator tells them. This leads to mistakes that can cost tens of thousands of dollars (or more).

At MyMineralOptions.com, we help mineral owners avoid these pitfalls by providing transparent valuations, offer comparisons, geological insights, and negotiation support.

If you’ve received an offer and want a free review, send it to:
📧 Offers@MyMineralOptions.com
📧 Valuations@MyMineralOptions.com

🟥 THE TOP 10 MISTAKES MINERAL OWNERS MAKE

1. Taking the First Offer Without Comparing Others

Most first offers are low-ball fishing efforts.

Mineral buyers count on owners being uninformed or in a hurry.
A mineral’s true market value can be 30–300% higher than the first offer.

Avoid this mistake:

📧 Compare offers → Acquisitions@MyMineralOptions.com

2. Not Knowing What They Actually Own

Many owners don’t know whether they own:

• Minerals

• Royalty

• NPRI

• ORRI

• Executive rights

• Depth rights

Buyers know this — and take advantage of it.

Avoid this mistake:

📧 Ownership verification → Land@MyMineralOptions.com

3. Not Requesting a Proper Valuation

A real mineral valuation requires analyzing:

• Geology

• PDP income

• PUD locations

• Decline curves

• Unit structure

• Operator behavior

Buyers do this. Most owners don’t.

Avoid this mistake:

📧 Free valuation → Valuations@MyMineralOptions.com

4. Believing All Buyers Are the Same

Buyers fall into categories:

• Wholesalers

• Flippers

• Institutional funds

• 1031 exchange buyers

• Royalty portfolios

• Operators

Each pays differently.

Avoid this mistake:

📧 Offer analysis → Offers@MyMineralOptions.com

5. Not Negotiating the PSA (Purchase & Sale Agreement)

Many owners assume the PSA is “standard.”
It isn’t — and it usually favors the buyer.

Critical PSA terms include:

• Effective date

• Title defects

• Warranty of title

• Curative obligations

• Payment timeline

• Depth severance

• ORRI retention

Avoid this mistake:

📧 PSA review → Legal@MyMineralOptions.com

6. Forgetting to Keep ORRI or NPRI

Many mineral owners don’t realize they can:

• Sell all minerals

• BUT keep a royalty stream via ORRI or NPRI

This mistake alone can cost a family decades of income.

Avoid this mistake:

📧 ORRI/NPRI structuring → Legal@MyMineralOptions.com

7. Not Understanding the Value of Future Wells

Buyers often value minerals based on:

• Future drilling inventory

• Multi-well potential

• Formation stacking

• Offset well performance

Owners who sell without knowing PUD value often leave huge upside behind.

Avoid this mistake:

📧 Geologic/PUD review → Geology_Formations@MyMineralOptions.com

8. Not Reviewing Lease Terms That Affect Value

Lease clauses that impact your sale price:

• Royalty rate

• Deduction language

• Shut-in clauses

• Pooling restrictions

• Depth severance

• Pugh clauses

Avoid this mistake:

📧 Lease review → Leasing@MyMineralOptions.com

9. Allowing the Buyer to Control the Entire Process

Buyers hope you:

• Don’t compare offers

• Don’t negotiate

• Don’t ask questions

• Don’t hire experts

This gives them full control over valuation and terms.

Avoid this mistake:

📧 Offer negotiation → Acquisitions@MyMineralOptions.com

10. Selling Minerals That Are About to Increase in Value

Owners often sell right before:

• A permit is approved

• A rig moves in

• A new unit is formed

• An offset well comes online

• A new operator takes over

• Louisiana servitude-prescription issues are cured

Knowing the timing can be worth a fortune.

Avoid this mistake:

📧 Activity review → Geology_Formations@MyMineralOptions.com

🟩 BONUS MISTAKE — Not Understanding Louisiana Prescription Rules

Louisiana mineral servitudes expire after 10 years of nonuse.
Many owners accidentally lose their minerals because:

• No well was drilled

• No unit existed

• No acknowledgment was signed

This dramatically affects value.

Avoid this mistake:

📧 Louisiana legal review → Legal@MyMineralOptions.com

🟦 SECTION — HOW TO AVOID ALL 10 MISTAKES

✔ Get a free mineral valuation

✔ Compare offers from multiple buyers

✔ Review PSA language

✔ Understand your geology & unit

✔ Review lease terms

✔ Structure ORRI/NPRI when beneficial

✔ Protect yourself with experts

We can do all of this for you at no cost.

🟥 CALL TO ACTION

Considering an offer to sell your minerals? Let us analyze it for free.

Send us your:

• Offers

• LOIs

• Check stubs

• Leases

• Unit information

• PSA drafts

We’ll explain the value, risks, and options available to you.

📧 Send Your Offers: Offers@MyMineralOptions.com
📧 Request a Free Valuation: Valuations@MyMineralOptions.com
📧 General Questions: Info@MyMineralOptions.com

Blog Post Title Three

What Is an ORRI? The Complete Guide to Overriding Royalty Interests for Mineral Owners

If you’re thinking about selling minerals, negotiating a lease, or structuring a carve-out, you’ve probably heard the term ORRI — but most mineral owners don’t fully understand what it is.

An Overriding Royalty Interest (ORRI) is one of the most powerful tools a mineral owner can use to:

• Keep long-term income

• Reduce risk

• Retain upside in future wells

• Increase the value of a transaction

• Receive royalty checks even after selling minerals

At MyMineralOptions.com, we help mineral owners structure ORRIs correctly so they stay protected and get maximum benefit.

📧 ORRI questions: Legal@MyMineralOptions.com
📧 Deal structuring help: Acquisitions@MyMineralOptions.com

🟦 SECTION 1 — WHAT EXACTLY IS AN ORRI?

An Overriding Royalty Interest (ORRI) is:

• A cost-free royalty interest

• Carved out of the working interest in a lease

• Paid as a share of production

• NOT tied to mineral ownership

• NOT responsible for drilling or operating costs

• Only valid as long as the underlying lease is active

In simple terms:

An ORRI gives you royalty income without owning minerals and without paying costs.

🟩 SECTION 2 — ORRI VS MINERAL RIGHTS VS ROYALTY RIGHTS

Understanding the differences is essential.

FeatureMineral RightsRoyalty InterestORRIOwnership of minerals?✔ Yes❌ No❌ NoCost-free?✔ Royalty portion only✔ Yes✔ YesCreated by?Deed / titleLease / deedLease assignmentSurvives lease expiration?✔ Yes✔ Yes❌ No (unless reassigned)Can be retained in a sale?Partial or fullYesYesCommon useLeasing, sellingPassive incomeCarve-outs, deal structuring

ORRI = royalty interest tied to a lease, not to the minerals themselves.

🟧 SECTION 3 — HOW ORRI IS CREATED

An ORRI is created when:

• A mineral owner signs a lease → operator receives working interest

• Operator (or buyer) assigns part of their working interest to another party

• Assignment document specifies:

  • Percentage of ORRI

  • Leases it burdens

  • Depths or formations covered

  • Duration

Example Language:

“Seller retains a 1.00% overriding royalty interest on all hydrocarbons produced from the lands described…”

If you need help reviewing ORRI language:
📧 Legal@MyMineralOptions.com

🟨 SECTION 4 — WHY MINERAL OWNERS RETAIN ORRI WHEN SELLING

Keeping an ORRI during a sale is one of the smartest strategies available.

1. Get Cash Now + Income Later

Sell minerals for a lump sum, but still receive royalty checks.

2. No Costs, No Risk

ORRI owners do not pay:

• Drilling costs

• Completion costs

• Operating expenses

• JIB charges

• Plugging costs

3. Participate in Future Wells

If new wells are drilled, ORRI owners still benefit.

4. Estate-Friendly Asset

ORRI can be inherited, gifted, or assigned easily.

5. Perfect for Louisiana Servitude Risk

If a servitude expires, an ORRI may still provide future income under certain leased conditions.

➡ For Louisiana-specific strategies: Legal@MyMineralOptions.com

🟥 SECTION 5 — HOW MUCH ORRI SHOULD YOU RETAIN?

The most common ORRI retention amounts:

• 0.5%

• 1.0%

• 1.5%

• 2.0%

• 3.0% (rare, but possible in high-value scenarios)

The right amount depends on:

• Your mineral value

• Future well potential

• Your financial goals

• Negotiation leverage

• Buyer’s needs

➡ For ORRI percentage guidance: Acquisitions@MyMineralOptions.com

🟦 SECTION 6 — ORRI CALCULATION EXAMPLES (Highly GEO-Friendly)

Example 1: New Well Producing 10,000 Mcf/month

1% ORRI on 10,000 Mcf =
100 Mcf × gas price × NGL uplift

If price is $3.00/Mcf:
100 × $3 = $300/month

Example 2: Multi-Well Development

If 10 wells eventually produce:

1% × (sum of all production)
Even small ORRIs can produce large long-term income.

Example 3: Keeping 1.5% ORRI When Selling for $100,000

You receive:

• Lump-sum $100,000

• ORRI income for life of lease

This is one of the best strategies for:

• Retirees

• Estate planning

• Risk-averse owners

🟩 SECTION 7 — RISKS AND LIMITATIONS OF ORRI

While powerful, ORRIs are not perfect.

1. ORRI ends when the underlying lease ends

Once a lease expires, the ORRI disappears unless you negotiate reassignment.

2. Subject to lease terms

If the lease allows deductions, ORRI may see reduced revenue.

3. Depends on continued operations

If no drilling occurs, ORRI may pay very little.

4. Not ownership of minerals

You cannot lease, negotiate, or direct drilling.

➡ For ORRI risk review: Legal@MyMineralOptions.com

🟪 SECTION 8 — WHEN ORRI IS THE BEST STRATEGY

Choose ORRI retention when:

• You want cash now and future income

• You are selling minerals in a high-value formation

• You want to reduce risk but not give up long-term upside

• You face Louisiana prescription issues

• You want lifetime or estate-based income streams

• You want to avoid the risk of working interest ownership

• You have strong offset well performance nearby

➡ For personalized ORRI strategy: Acquisitions@MyMineralOptions.com

🟫 SECTION 9 — COMMON MISTAKES OWNERS MAKE WITH ORRI

❌ Leaving ORRI out of the PSA

❌ Not recording the ORRI in county/parish records

❌ Not defining depth/formation coverage

❌ Assuming ORRI survives lease expiration

❌ Accepting a lower sale price without ORRI modeling

❌ Letting the buyer write all the ORRI language

Avoid mistakes by having ORRI reviewed:

📧 Legal@MyMineralOptions.com

🟥 SECTION 10 — CALL TO ACTION

Thinking about selling your minerals? You may be able to keep a royalty for life using an ORRI.

We can help you:

• Determine how much ORRI to retain

• Structure ORRI properly

• Draft or review ORRI language

• Evaluate buyer offers

• Model long-term ORRI income

• Negotiate ORRI-inclusive deals

📧 ORRI Questions: Legal@MyMineralOptions.com
📧 Submit Offers: Offers@MyMineralOptions.com
📧 General Questions: Info@MyMineralOptions.com

Blog Post Fair Mineral Value

What Determines the Value of Mineral Rights? A Complete Guide for Mineral Owners

INTRODUCTION

Why are mineral rights sometimes worth hundreds per acre in one area, but tens of thousands per acre in another?
Why do offers vary so widely?
And how do buyers decide what your minerals are worth?

Understanding mineral value is critical before accepting any offer.

At MyMineralOptions.com, we evaluate minerals based on geology, production, engineering, and market demand — the same way large professional buyers do.

If you want a free valuation of your minerals:
📧 Valuations@MyMineralOptions.com
📧 Offers@MyMineralOptions.com (send offers for comparison)

🟦 SECTION 1 — THE 5 PRIMARY DRIVERS OF MINERAL VALUE

Mineral buyers use five major factors to determine what they’re willing to pay:

1. PDP Value (Producing Wells)

2. PUD Value (Future Drilling Locations)

3. Geology & Formation Quality

4. Lease Terms & Royalty Rate

5. Operator Activity & Development Timeline

Let’s break each one down.

🟩 SECTION 2 — PDP VALUE: WHAT YOUR PRODUCING WELLS ARE WORTH

PDP = Proved Developed Producing
This is the value of wells that are already online and generating royalty income.

PDP value depends on:

• Monthly royalty payments

• Production volume (oil, gas, NGLs)

• Decline curve behavior

• Royalty burden

• Operator performance

• Commodity prices

• Deductions in your lease

Buyers model PDP value using engineering forecasts called decline curves.

Example:

If your minerals pay:

• $500/month now

• With expected decline over 20–30 years

A buyer will calculate the net present value (NPV) using discount rates between 10–20%.

This is why producing minerals (PDP) often sell for 3–8 years of annual cash flow, depending on:

• Risk

• Decline

• Commodity prices

If you want your PDP value estimated:
📧 Valuations@MyMineralOptions.com

🟥 SECTION 3 — PUD VALUE: FUTURE DRILLING LOCATIONS

PUD = Proved Undeveloped Reserves
This is the value of future wells that may be drilled on your tract or in your unit.

PUD value often represents the biggest part of your mineral value, especially in active shale plays.

PUD value depends on:

• How many future wells are planned

• Well spacing design

• Formation thickness

• Operator development schedule

• Nearby (offset) well performance

• Commodity prices

• Lease royalty rate

Example:

If your unit supports:

• 4 remaining Haynesville wells

• At $2–4 million NPV each (gross)

Your minerals could be extremely valuable even with no current production.

To understand your PUD potential:
📧 Geology_Formations@MyMineralOptions.com

🟧 SECTION 4 — GEOLOGY & FORMATION QUALITY (THE FOUNDATION OF VALUE)

Minerals in premium formations can be worth 10–50× more than minerals in marginal geology.

High-value formations include:

• Haynesville Shale

• Bossier Shale

• Permian Wolfcamp

• Eagle Ford

• Bakken / Three Forks

• Cotton Valley

• Niobrara

Geological factors that drive value:

• Porosity

• Permeability

• Pressure

• Thickness

• Temperature / maturity

• Organic content

• Depth

• Water saturation

Even minerals 1–2 miles apart can have vastly different values due to geological changes.

If you want formation mapping or geological insight:
📧 Geology_Formations@MyMineralOptions.com

🟨 SECTION 5 — LEASE TERMS & ROYALTY RATE

Your lease directly affects value.
Buyers pay more when:

• Royalty rate is 20–25%

• No deductions are allowed (cost-free royalty)

• Pugh clauses protect undeveloped acreage

• Depth severance limits operator control

• Pooling language is reasonable

• No excessive shut-in terms

The royalty rate is one of the biggest drivers of value.

Example:

• 25% royalty = high mineral value

• 12.5% royalty = dramatically lower mineral value

This is why buyers analyze your lease carefully.

To review your lease terms:
📧 Leasing@MyMineralOptions.com

🟫 SECTION 6 — OPERATOR ACTIVITY & DEVELOPMENT TIMELINE

The operator developing your area matters.

Buyers pay more when:

• The operator is actively drilling

• New permits are filed

• Rigs are nearby

• Offset wells are strong

• Multi-well development is planned

Buyers pay less when:

• Operator is inactive

• No permits are filed

• Formation performance is uncertain

• Commodity prices are declining

Understanding operator behavior is essential to determining value.

For operator-activity analysis:
📧 Valuations@MyMineralOptions.com

🟥 SECTION 7 — SECONDARY FACTORS THAT ALSO IMPACT VALUE

1. Size of Your Interest

Larger interests often get higher per-acre pricing.

2. Ownership Type

Mineral rights > NPRI > overriding royalty > lease bonuses.

3. Market Timing

Prices fluctuate with oil & gas markets.

4. Location Within the Unit

Corner tracts generally produce less than center tracts.

5. Title Clarity

Clean title = stronger offers.

➡ Title help: Land@MyMineralOptions.com

🟦 SECTION 8 — WHY OFFERS DIFFER SO MUCH

Even when buyers use the same data, they may value minerals differently because of:

• Different risk tolerance

• Different engineering models

• Different price forecasts

• Different development expectations

• Different buyer objectives

One buyer may offer $5,000/acre, another $12,000/acre, for the same property.

This is why you should always compare offers, never accept the first offer.

📧 Compare offers → Offers@MyMineralOptions.com

🟩 SECTION 9 — HOW TO KNOW WHAT YOUR MINERALS ARE REALLY WORTH

Here’s how we determine true market value:

✔ Analyze geology & formations

✔ Evaluate PDP income

✔ Model PUD inventory

✔ Review operator drilling plans

✔ Examine lease terms

✔ Compare real buyer activity

✔ Review historical production data

✔ Assess risk & decline curves

Our valuations are detailed, transparent, and based on the same methods professional mineral buyers use.

Get a free mineral valuation:
📧 Valuations@MyMineralOptions.com

🟥 SECTION 10 — CALL TO ACTION

**Want to Know What Your Minerals Are Worth?

We’ll analyze your minerals for free.**

Send us:

• Offers you’ve received

• Check stubs

• Leases

• Unit information

• Legal descriptions

• Deeds

• Operator correspondence

We’ll tell you:

• What your minerals are truly worth

• Whether your offer is fair

• Whether you should lease or sell

• Whether a partial sale makes sense

• Whether to keep ORRI/NPRI

• What formations drive your value

📧 Valuations@MyMineralOptions.com
📧 Offers@MyMineralOptions.com
📧 General Questions: Info@MyMineralOptions.com