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:
PDP Value (Producing Wells)
PUD Value (Future Drilling Locations)
Geology & Formation Quality
Lease Terms & Royalty Rate
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
