Magnolia, LLC
    Midland, Texas

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Fair & Easy
For owners that want to sell their mineral & royalty interests, Magnolia, L.L.C. offers competitive purchasing prices and simplifies the process for you by handling the paper work.

Our goal is to create a quick, easy and mutually profitable transaction for the royalty owner and ourselves. This is made possible with the expertise and knowledge we have gained from more than 30 years in the oil & gas industry.

In order to determine a fair sales price, we will perform an engineering and economic evaluation on your interest. The evaluation will include analyzing historical production data and past cash flows, along with a calculation of production decline rates. We use this information to forecast future well performance, calculate remaining oil and gas reserves, and predict future revenues.

The Value of Your Interest

PRODUCTION:
Includes the well’s current production and the estimated production decline in the future. Wells that have high production rates and low annual declines will be worth more than those with low production and steep decline rates.

PRICING:
Depends on the current price of the oil or gas sold from the well, which we can usually determine from your previous revenue checks. The higher the price of the products, the higher the value of your interest.

TAXES:
The amount of severance and ad valorem taxes you pay affect the gross value of your interest. This information is helpful to us in determining your net income in the property.

MONTHLY OPERATING COSTS:
Even though royalty interest owners do not pay monthly operating expenses, an estimation of this number is needed to determine the well's economic limit. Wells are normally plugged when the monthly operating costs exceed the monthly net revenue. Therefore, the longer the estimated economic life of a property, the higher value to the interest owner.


We hope this explains our calculation process of your interest. If you have any questions please email us at magnolia@magnoliaminerals.com or call us at (432)682-4337. We will be happy to answer your questions.