A Denver Mineral Valuation Desk Built Around Reviewable Evidence
Evidence: Start With the Property File
The review begins with the record owner, county, legal description, deed chain, reservations, assignments, estate or trust instruments, lease, unit records, division order, payor account, and recent statements. Each document is used only for the fact it can actually support.
Revenue: Reconcile the Owner Decimal
Statement months, products, volumes, realized prices, taxes, deductions, adjustments, owner decimal, and payment timing are placed on one schedule. Tract share, ownership fraction, lease royalty, unit allocation, and payor setup should explain the decimal rather than merely repeat it.
Wells: Read Production in Time
Existing wells are reviewed through completion date, production history, decline, downtime, workovers, curtailment, operator changes, and unit history. One strong check or one weak month is not allowed to stand in for the full trajectory.
Market: Use Comparable Transactions Carefully
A comp is more useful when county, formation, product mix, interest type, development status, effective date, included rights, and closing conditions resemble the subject interest. A headline multiple without those similarities belongs in a sensitivity, not at the center of the range.
Upside: Risk Future Development Separately
Permits, offsets, operator inventory, undeveloped benches, and possible recompletions can matter, but they do not carry the certainty of existing production. Each development layer receives its own timing, production shape, burden, price case, probability, and discount.
Range: Show Which Assumption Moved
Low, base, and high cases vary price, basis, deductions, decline, downtime, development timing, title reserve, and discounting deliberately. The workpaper keeps those movements visible so a reviewer can identify the reason for the changed result.
The desk does not present a preliminary transaction analysis as a legal, tax, engineering, reserve, or documented appraisal opinion. Owners should bring those questions to qualified advisers.
Transfer: Reconcile the Number to the Deed
The final range belongs beside the property schedule, included fractions, depths, formations, wells, units, effective date, revenue cutoff, title standard, adjustments, retained rights, funding conditions, and proposed conveyance. A valuation of one interest cannot support a deed conveying another.