How we Value your Royalty Interests
TAS Royalty Company has a relatively simple process to evaluate your interest and provide you with a prompt offer. We use your royalty income as a guide to the valuation and can make you a general offer based on a review of your last two or three royalty checks. We may also look at the following factors to formulate an offer:
Current production - If a well or lease produces at relatively high rates, then the future life of the well will probably be longer; therefore, the current value would be greater than for properties with lower overall production. If a well or lease is producing at economically marginal rates for the operator, the future life of the well or lease may be in question, thus possibly decreasing the current value.
Current prices - We generally value properties based on current prices. If these change, the value of the royalty interest may go up or down.
Historical production - Frequently, a graph showing the well or lease production to date will allow projections of the future production decline. We use such projections when evaluating royalty interests.
Tax rates - Severance and property taxes may be high, low, or nonexistent in the State in which your interest lies, and these may affect value.
If you have any questions about your royalty interest, we are happy to consult with you.
Email us or call us toll-free at 1-888-285-3966.
Just ask for Tom Sikes, partner in the firm.