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Valuing Nonproducing Oil and Gas Interests in Inactive AreasValuing Nonproducing Oil and Gas Interests in Inactive Areas

The analysis requires more than a formulaic approach.

Alan B. Harp, Jr., Managing Director

April 20, 2020

7 Min Read
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Significant wealth is associated with nonproducing oil and gas interests in nearly every oil and gas producing state. The location of drilling rigs in December 2019 (see “Where Are They?”
p. V17) generally depicts the areas with the highest oil and gas mineral values. These areas include west Texas and southeastern New Mexico (Permian Basin), south Texas stretching up along the Gulf Coast (Eagle Ford Shale) and elsewhere in Oklahoma, North Dakota (Bakken Shale), Louisiana and east Texas (Haynesville Shale), Wyoming, Colorado, Appalachia (Marcellus and Utica Shale in Pennsylvania, Ohio and West Virginia) and California.

When the subject interests are located away from areas of active development (where less data is available, and a petrole...

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About the Author

Alan B. Harp, Jr.

Managing Director, Stout Risius Ross

Alan B. Harp is a Managing Director in the Valuation & Financial Opinions Group. He has over 20 years of extensive experience determining the fair market value of interests in closely held businesses. He has provided valuations in a wide range of industries primarily for estate, gift, and income tax purposes. Mr. Harp specializes in valuation of oil and gas interests and entities. He provides valuations in the oil and gas realm for a broad range of purposes, including tax and estate planning, corporate transactions, financial reporting, and bankruptcy. Prior to joining SRR, Mr. Harp was a Senior Managing Director at HFBE where he led the energy valuation group that specialized in the valuation of closely held Exploration & Production (E&P) firms. Mr. Harp is a Chartered Financial Analyst and Accredited Senior Appraiser of the American Society of Appraisers and is licensed as an FINRA Series 7 General Securities Representative. He is also a member of the Texas Independent Producers and Royalty Owners Association (TIPRO) and the Houston Producers Forum.

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