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Mineral Rights Valuation

PRO

Calculate present value of mineral interest from production rate, decline, commodity price, royalty %, and discount rate.

Mineral Interest Parameters

Current Production (BOPD)

Oil Price ($/bbl)

Annual Decline Rate (%)

Royalty Interest (%)

Discount Rate (%)

Evaluation Period (years)

Economic Limit (BOPD)

Annual Price Escalation (%)

Valuation Results

PV of Mineral Interest

$/Month (Year 1)

EUR (bbl)

Total Undiscounted Revenue

Economic Life (yrs)

PV/bbl

Royalty Income Forecast

How this was calculated

Production: Exponential decline q(t) = qi * (1 - D)^t. Truncated at economic limit.

Revenue: Monthly gross = production * price * (1 + escalation)^year. Royalty = gross * royalty%.

PV: Sum of monthly discounted royalty cash flows. PV = Sum[royalty_m / (1 + r/12)^m].

Market multiples: Mineral rights typically trade at 3-6x annual income for producing minerals, though this varies widely by basin and decline profile.

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