How We Value


Tradition Royalties always strives to pay the highest price possible for the purchase of Oil and Gas Mineral Rights and Royalties. We can provide a prompt, honest and fair valuation of your current mineral and/or royalty interest. We close quickly and we always welcome the opportunity to try and surpass any offer you might currently have from another mineral or royalty purchaser.

At Tradition Royalties we are abundantly aware of the fact that no two oil and gas properties are exactly the same. Recognizing this concept, we value each and every property according to its type in a concise and fair manner.

We purchase all types of mineral and/or royalty interests including:

Revenue producing property – If you are receiving royalty checks from an operator relative to production from a well or wells, we can establish a reasonable value quickly. We merely need to examine several recent checks to determine interest and product prices paid. An engineering analysis of the well(s) and producing field(s) thereafter enables us to calculate potential future revenue associated with your interest. We will thereafter make you an offer primarily based on a multiple of your current monthly or annual revenue.

Currently leased but not yet producing – If your mineral rights are currently under lease, but no wells have been drilled and started producing, the valuation process is a bit more challenging: We consider all determinable factors including adjacent production, the operator and the current regional activity. We will determine a value based on the probability of drilling and our expectation of reserve estimates in the event production is secured at some point in the future.

Unleased – Tradition does acquire unleased minerals in many areas despite the inherent risk involved. Tradition is well funded and allocates a specific portion of its investment funds to the purchase of non-revenue generating assets. Each such property is evaluated taking into consideration prior acquisitions regionally and a review of current activity in the area of ownership.

Common factors utilized in our valuation method include:

  • Current Prices for Oil & Gas
  • Quantity of Producing Wells
  • Characteristics of the producing Formation and/or Reservoir
  • Interest Type
  • Potential for development or additional development

Once we have established a reasonable value for your oil and gas minerals and/or royalties, we will contact you and make a fair offer. You are never under any obligation to divest your minerals and/or royalties until we have agreed on a purchase price and a Purchase and Sale Agreement has been executed by buyer and seller.