Simply owning a large plot of land doesn’t make it valuable in terms of oil and gas mineral interest. The value is determined by the amount of oil and gas formations you have below the surface, the ease of accessing and transporting the oil and gas to refineries, the amount of activity within the area and other factors that provide oil companies a reason to determine your area as the next best area to drill. For example, owning mineral rights in North Dakota in 2010 had nowhere near the value of owning the same minerals in 2013. This is due to advanced technology enabling oil companies to frack shale and extract oil and gas in areas that were uneconomical at the time. Throughout the shale revolution, some mineral rights have gone from $500 per acre to $30,000 per acre.
Finally, the current price of oil and gas also dictates the value of minerals. As these prices can fluctuate and no one really has control over the fluctuations, understanding the price and making a transaction decision based on projections is usually required.
Eckard Land and Acquisition helps investors and investment companies know exactly how valuable their oil and gas minerals are. We analyze historical trends, current situations and projections to help investors determine when the right time is to buy or sell mineral rights. Having as much information available to you is critical in making the best investment decision for your portfolio, and we are here to help. Feel free to contact us at any time for answers to your general or specific questions about anything related to mineral rights.