Offers vary on the Following Evaluations determined by our Petroleum Engineer:
Production History – (Decline Curves and Water Rates) of the Field and/or Leases
Operators Reputation – Some are just better than others
Reservoir Formation – Some Reservoirs have longer production histories than others
Commodity Price Risk – Gas and oil pricing futures, political change, OPEC, weather, etc.
Future Production and Development
Interest Type – Royalty, Overriding Royalty, Mineral Rights/Interest, Non-Participating Royalty Interest, or Working Interest.
Historical Cash Flows and Averages for: 12 months, 6 months, and 3 months.
Tax Rates – Tax Rates for Purchase and Severance may be too high, low, or non-existent pending your state of where the interest is located, which affects property value and offer rate.
Our offers typically range 25 – 70 months (pending certain parameters). The information above allows us to calculate current reserves with a prediction of future reserves and cash flows. Our objective is to offer you fair market value while addressing risks and uncertainties that may be involved in future interests and commodities prices.
|Generates Revenue from Well Production||Y||Y||Y||Y|
|Owns the Underground Minerals||Y||Y||N||N|
|Ownership Continues after Production Stops||Y||Y||N||N|
|Collects Upfront Bonus Payments||Y||N||N||N|
|Has Rights to Executive Leases||Y||N||N||N|
|Pays to Operate or Drill the Well||N||N||N||Y|
|Participates in the Lease Operating Expenses||N||N||N||Y|
|Has Significant Tax Advantages||N||N||N||Y|
(NPRI) Non-Participating Royalty Interests – Are Interest similar to ORRI’s but typically not bound to a well or lease, they are typically bound to Minerals or Mineral Rights assigned by a land/mineral right owner conveying either a permanent royalty or temporary royalty off his or hers mineral rights and lands, typically NPRI do not have executive rights to bonuses but the NPRI owner is carried and bound by such leases that are executed by the true Mineral Rights Owner.
It typically takes several days to several weeks pending the information currently available and presented by the Seller. Some Royalty Companies string Sellers out for periods of 30-60+ Days; however we offer solutions that meet our timelines and work and fit within the guidelines and timelines of the seller.
Absolutely Not, All offers presented by are “Non Obligation” Offers to Owners for their Oil & Gas Interest(s). Additionally, receiving an offer does not obligate you to sell either.
Because of variations of oil & gas production compounded with market averages, majority of oil & gas royalties are determined off the monthly commodity averages. Most operators are 60-90 days back meaning your current months check is typically for production two months back (gas) or one month back (oil), however some oil & gas companies operate 90 days back but is always based on production and commodity pricing. Additionally, productions do vary and change because of the declines in oil & gas wells. There is only so much gas that can be recovered from reserves on a monthly basis and over the lifetime of the well.
1. A different company is responsible for paying you royalties and may be currently setting up your owner accounts.
2. The amounts you receive may not have accrued the minimal amount set forth by the Royalty Payor, for example Companies like Devon Energy Production Company, LP and Chesapeake Exploration, LP require that you must first have a minimum accrued amount of at least $100.00USD to receive a royalty check.
3. Your interest may be in suspense for legal reasons because you have not filed all appropriate paperwork with the Oil & Gas Company who is to pay you royalties, address change request, estate changes, or litigation.
4. The wells and/or field may not be producing gas or oil, please call the number on the last check stub you recieved. If you can’t locate that number please feel free to contact us for further assistance and help.