If you have some minerals under your backyard, you can sell oil and gas rights to some companies. These firms will try to give you cash for your mineral rights, but you need to take some things into considerations as well. These are business transactions, so you need to assess both the pros and cons of these offers. Learn more.
- You will probably get a 15% royal depending on how many acres the buyer has in a drilling unit, which is 640 acres most of the time. So you will receive a royalty check as long as the well is producing something for the marketplace.
- You might want to sell a portion or even all of your mineral rights to the lessee so as to avoid many situations you cannot control. This will reduce your risks of an unsuccessful operation as your buyer might not drill a well at all.
If you sell oil and gas rights, the buyer will have the right to drill the property so as to test whether the spot has minerals or not. The lessee will be producing oil or gas directly from the well if there is gas or oil of marketable quality and quantity. Remember that you can get up to 25% royalty from a lessee if you have both strong negotiating skills and a much-desired property. Your sign up bonus could be good, but your royalty payments should exceed this amount greatly over time.
Do Your Homework
To avoid missing opportunities, you´re better off doing your homework so as to maximize your benefits during these negotiations. Those who want to sell oil and gas rights need to be aware of the dangers of any negotiation as well. In addition, you should talk with the members of your family as soon as possible, as they could be involved in this. Visit this site.