We buy royalty the right way.

Answer:

Mineral & royalty interests are merely investments or assets – similar to a rental property or stocks & bonds. Here are some common reasons people choose to sell their mineral interests: 1. Immediate Cash - Cash flow needs, such as a large purchase, medical bills, etc. 2. Estate Planning - Estate planning or liquidation of an estate or trust, to reduce burdens to beneficiaries. 3. Commodity price volatility – Eliminate commodity price worries. Your asset value is tied directly to fluctuations in price. 4. Paperwork elimination – People needing to simplify their lives via elimination of paperwork, accounting and administration – including tax filings, leases, division orders, etc. 5. Elimination of future income risk – Bad well operators, well mechanical issues, commodity price volatility – many of these issues impact oil and gas income. Selling removes this risk. 6. Investment Objectives - Change in investment objectives and/or a desire to diversify assets away from depletable to non-depletable assets. Oil and gas assets, like any natural resource, deplete with time. Plain and simple, this means your royalty checks ultimately cease and your ultimate asset valuation is zero. Selling your interest and investing in a nondepletable asset (real estate, securities, certificates of deposits) aids in securing the principal part of your investment.

No, absolutely not. We want you to feel completely comfortable to say yes or say no. There’s no pressure to sell – that’s not how we operate. However, if you sign a written offer from us, then we ask that you complete the transaction because that’s when we incur expenses tied to titlework.

We use a variety of factors to determine the current value of your property. 1. Commodity Price: The market prices of oil & gas are key variables in any mineral interest evaluation, especially if your acreage is already producing. The condition of the energy futures market can also influence value, since this presents the market’s expected oil & gas prices over the coming months & years. 2. Production: Historic production volumes from any drilled and active wells on your property will drive a strong component of value, since any projected production increase or decline will be best informed by production activity to date. 3. Operator: Unfortunately, not all operators are created equal. If your acreage is leased but fully or partially undeveloped, the operators who have leased your acreage will influence your property’s value in that they influence the likelihood that your property will be developed. The best operators develop quickly and aggressively, while weaker operators do not. 4. Location: For undeveloped acreage, location is a primary factor in evaluation. Location gives an indication as to the geological likelihood of strong subterraneous reserves as well as future drilling possibilities, whether horizontal or vertical drilling. 5. Tract Size: Larger properties command a premium over smaller properties because they reduce the administrative burden for operators to develop a large area aggressively and greatly increase the propensity for operators to choose aggressive development methods such as horizontal drilling. 6. Well Concentration: A property with no production or only a single well is inherently more risky than a property which is fully-developed with many wells, because the future production is less certain. Lower risk profile interests command a premium during an evaluation because they can be forecasted and valued with more certainty.

Please call us today at 432-242-4455 or email me here. What we require: Before we can make you an offer, we must determine its current value. In able to do this, we must have some information from you. Most of the time, your check stub detail will suffice (the well information sheets that come with your royalty check). Once we have that information, we will make you a ‘no cost / no obligation’ offer. If you accept, we will begin our closing process, which is at no cost to you. There is very little required of you during the closing process, as we handle all transfer paperwork, title work and filing fees. If you don’t receive a royalty check: If you own non-producing mineral interests, then we will need a legal description and a percentage ownership that you currently own under that tract to begin our valuation process.

We are here to help answer any questions you may have. There are no questions too simple or too complicated to ask. When it’s as important as your minerals, you need to know. We will do our best to give you objective assistance from an experienced professional. Just email or call us.