Tower Rock generates offers for non-producing minerals by analyzing surrounding activity including drilling, production, and leasing. We come up with an aggressive offer for each specific prospect based on that analysis and convey a value that we believe to be aggressive to mineral owners in the area. We factor in dry-holes, surrounding well performance, and the likelihood of drilling one, two, or more wells.
For a producing property, we perform a decline-curve analysis on the wells, which means that we forecast the production based on its prior performance. That production forecast is then pit against time value of money, taxes, commodity pricing, etc., to generate a discounted cash-flow analysis. Feel free to give us a call and we’d be happy to discuss this in more detail with you!