Oil & Gas is such a speculative industry. The rapid rise and fall of industry market prices means that as prices climb, development of leaseholds happen, aggressively, and just as quickly, when the bottom falls out, development abruptly ends, hence the name, “boom bust industry.”
Companies may not place an owner’s property in a drill unit for 5, 10, or even 15 years after leasing; in fact most people will never become part of a drill unit. By purchasing your minerals for a lump sum, we will assume your risk, ensuring that you see a large sum of money for your mineral interest now.
When considering selling oil and gas Mineral rights it is important to understand how it will impact your taxes. Money generated through oil and gas production on your property may be taxed at a much higher rate than it would be if you were to sell your interest.
Income Tax: In most cases royalties are considered taxable income. This extra income can push you into a higher tax bracket.
Capital Gains Tax: In the event you have owned your property for more than one year, you could potentially be taxed at a lower capital gains tax rate.
Disclaimer: not to be construed, represented, or communicated as tax advice. Please consult your tax professional.
Absolutely! A meeting will be necessary to discuss lease terms, royalty percentage, and review your lease and accompanying documents. After review, we can discuss how purchase price changes depending on lease terms.
Absolutely! Purchase price changes when there’s a producing well on your property. Lease terms and production income help determine price.
No. We are certainly willing to discuss buying a partial interest.
There are many factors that go into a purchase offer. These include: location of your mineral property, terms of your lease, whether or not your land is permitted or unitized, production data from surrounding wells, industry trends, etc. We make each offer on a parcel-by-parcel basis.
Evaluations can take as little as a few hours, and as long as a few days depending on how much property is being evaluated. We will always be straightforward with you on how long to expect to wait before we can make you an offer.
Selling a portion of your minerals gives you an immediate cash payout, while still maintaining the ability to receive royalty payments if your minerals are produced. The percentage of your minerals that you maintain is completely your decision. It depends on if you would prefer to have a higher guaranteed payout, or take the risk on royalty payments.
If my minerals are already held by production (HBP) from an existing oil or gas well, can I still sell my minerals?
Yes. We can offer you a lump sum in exchange for HBP mineral rights. If you have a shallow well, we can even negotiate for you to keep the shallow well royalties while selling us the undeveloped deep rights.
Our due diligence process generally takes between 60 and 120 days to complete title and prepare all the necessary paperwork for closing.
We will agree on a purchase price per acre, and begin our due diligence process on your minerals. This includes conducting a title search at the County Recorder’s office. Once we confirm your net mineral acreage, we will execute a mineral deed, and write you a check the same day for the total consideration.
The more information you provide us regarding your parcel, the faster we can complete our due diligence. This includes: Original copies of your lease, Order for Payment, Title Searches, Source Documentation, Royalty Pay Stubs, and any other pertinent information.
In most circumstances, the answer is yes. However, each situation is different. Give us a call to discuss specifics on your property.