How We Value

Each oil and gas interest is unique and requires a thorough evaluation to properly determine its value. Broman Royalty looks at a variety of factors such as: 

 
1. Historical Production
2. Reservoir Characteristics
3. Geological Data
4. Commodity Price Risk
 

Our evaluation process begins with forecasting probable future production using historical production from the property. All wells decline at different rates and have distinct degrees of uncertainty.

 

We then consider reservoir characteristics and geologic data specific to the property. Lastly, we account for the current market environment and consider the risk of rising or falling prices. We are generally able to assume a higher degree of risk than individuals by distributing the risk over a large portfolio of investments.