Value of Mineral Rights in Caddo Parish Louisiana
Are you looking for the value of mineral rights in Caddo Parish Louisiana? Are you thinking about how to sell mineral rights in Caddo Parish, Louisiana? Perhaps you have received an offer and want to know if it is fair? This parish, including Shreveport, has had active oil fields since around 1900. This means people like you have been collecting oil and gas royalties for well over 100 years.
Many mineral owners want to know how to value their property before offering it for sale. But they don’t understand all the factors that go into that equation. Sure, the prices of oil and gas are at the top of the list, but whatever the price, there is still no single value for minerals. This guide will help you understand how to value your mineral rights in Caddo Louisiana.
Factors to consider
Oil and Gas Prices
As stated, this is at the top of the list. Money made is calculated by multiplying the number of barrels a well produces in a month times the current oil price. For gas, the price per MCF. The higher the price, the more money you—and the producer—make. But when the price drops, the opposite happens. Oil and gas prices will have a big impact on the value of mineral rights in Caddo Parish Louisiana.
Nearby Production and Current Activity
Oil production happens in a kind of neighborhood—there are usually a lot of other wells nearby. If wells in your royalty interests’ neighborhood are big producers, it’s likely that wells involving your mineral rights will be big producers also.
If you’re in an area with low production, buyers will assume your wells will follow that pattern as well. They’re likely to offer low prices.
What about new activity? New activity such as an operator filing a permit or a new drilling rig on your mineral rights will have a huge impact on the value. Mineral buyers know more about the activity going on in and around your area so be careful to fully understand all that is happening in and around your mineral rights.
While the value of your mineral rights in Caddo Parish Louisiana could be similar to others in your immediate neighborhood, just like a home, yours are different.
Nearby Producers
Some operators are bolder, risk-wise, than others. An aggressive operator may offer you more upside potential than a more conservative one. What type of operator do you have? This also holds true for mineral buyers. The only way to find the buyer who will pay the most for your minerals is to market them to as many buyers as possible.
The ‘Right’ Buyer
It only takes one to make you a great deal. We’ve often seen times where a buyer gets multiple offers, for simplicity, say in the $10,000 per acre range. Then one buyer comes along offering $13,000 per acre. If the higher buyer pays you, that’s the highest market value. Otherwise, it’s what the pack says.
Sometimes Sellers make mistakes when selling mineral rights
There are things you, the seller of mineral interests in Caddo Louisiana can do to help the process. Avoid these mistakes:
Thinking too Big
Did you ever put a prized item on eBay at a high price, convinced that’s what it was worth? Then it sat there. And sat there, without a bite. What about trying to sell your car or home?
This sometimes also happens to mineral owners. After all, this is all about getting the highest price, right?
Well yes, but with a huge qualifier—the highest price the market will pay. The ideal transaction is fair to everyone including the buyer. You’re always only going to get what a qualified buyer thinks it’s worth. Your goal is to find the buyer who simply will pay the most.
Neighborhood Rumors
Sometimes these inflated price ideas come from a rumor or a neighbor or a mineral forum. Many times we talk to mineral owners who say they heard minerals in their parish were going for outlandish amounts. And maybe, back in the days of $100+ oil, that might’ve been an offered price.
In our experience, rumors do exist and forums rarely provide real value. If you are looking for the highest price in Caddo, do not rely on other folks in your neighborhood or online forums as a guide.
Thinking too Small
On the flip side of overvaluing your property is failing to make sure you get enough for it. So many sellers find a couple of buyers promising lots of money or a quick purchase on the internet. You’re really never going to get the best price for your Caddo Parish mineral rights that way.
It’s vital to get your property in front of as many qualified buyers as possible. This allows competition which is what you must have to get the highest price possible. You might even find that one bold buyer who’s done extra research, is willing to pay a significantly higher % than the rest. Can you believe that we have seen over 100% in some cases! But that only happens if your minerals are available to the largest possible audience.
US Mineral Exchange
Have you heard of US Mineral Exchange? For years they’ve been helping mineral owners like you get great value. They do that by putting them before a large group of buyers and letting the marketplace take care of itself. Check out their Google Reviews online. There are other brokers with “testimonials” but US Mineral Exchange relies on real customers to tell their story. If you are looking to sell your minerals in Caddo Parish Louisiana, they are your best choice and who we recommend you contact today.
Royalty Calculator
The calculator below will help you estimate your oil and gas royalties in Caddo Parish, however, please do note that this does not take into consideration the future upside your property may hold. For this reason, if you are looking to sell your royalties, it is important to work with an industry professional who can help you determine your upside potential.
