A tool designed to estimate the monetary worth of subsurface resources, such as oil, gas, and minerals, considers factors like resource type, extraction costs, market prices, and geological surveys. For instance, an estimate for shale gas rights might incorporate current gas prices, projected production volume, and the cost of hydraulic fracturing.
Accurate valuations are crucial for both mineral owners and potential investors. They provide a foundation for lease negotiations, sales transactions, and investment decisions. Historically, determining this value relied on expert appraisers and complex calculations. The advent of digital tools has simplified this process, offering greater transparency and accessibility to information. This enables informed decision-making and facilitates more efficient market transactions.