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:
How did you calculate your offer?
What commodity price deck did you use?
How many wells are you assuming?
Are you valuing PDP only or PUD too?
How long is your title review period?
Will you adjust price if title changes?
Can I sell only part of my minerals?
Can I keep ORRI/NPRI?
When will I receive funds?
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
