Wednesday, May 20, 2015

Oil Price Risk To Mineral Rights Owners

Many mineral owners take the position that they will hold onto their mineral rights instead of selling them (or part of them) and gamble that they will earn more by holding. And whether they like to admit it or not, it is a gamble. The oil business is fraught with risk and price risk is a huge factor.

In oil and gas producing regions, I have observed an interesting thing about people and that is that they, invariably, will say "Oh, it'll be back," implying that oil prices will recover sooner than later. Oh, really? What about the collapse of 1986? By my account, it was about 17 years until the oil biz health improved dramatically. And 17 years is a very long time! Many a geologist, many an engineer, many a landman changed careers during that crash!

Oil fell a whopping 60% during the crash of 2014. What a disaster! Will it come back soon? Or do you find yourself asking "Should I sell mineral rights" now? I don't know! But take a look at this chart below.

The dark line is crude oil price, the blue line is an INVERSE U.S. Dollar. So, if the dollar strengthen, the line goes down. Notice the amazing correlation (inverse relationship) between crude oil and the dollar. Now, what is the dollar going to do over the next several years. At some point, many people will say that it will crash, that its value is not "real." I know one thing... it's almost impossible to predict! Some are saying that the rally during the spring of 2015 is over, that the dollar will now rise and oil will fall. Your guess is as good as mine regarding what crude oil prices will do long-term. And the relationship to the dollar is just one piece of the huge puzzle that is energy prices!

What does this inability to predict future prices mean to mineral owners? I get tons of inquiries about whether a mineral owner should sell mineral rights or not. Considering that often-asked question about selling mineral rights or not... it can be a very tough decision, with no easy answer, because we can't predict the future. But one thing is for sure -- cash money TODAY versus what might happen in the future can be a great move. If one needs or wants cash for whatever reason, and selling mineral rights can provide that cash, it can be a simple solution. I've sold before and I'm glad I did. I also have held mineral rights long-term. But, I might sell again. I am no spring chicken and cash money is tremendously appealing. We can't take it with us!

If you do have any interest in selling mineral rights or selling royalties, contact me. I have helped a LOT of people do that very thing, from small interests that sell for a few thousand dollars to large deals selling for over a million bucks. Good luck!

Wednesday, March 25, 2015

What Is Reasonable Term (Length) Of Oil & Gas Lease?

Mineral owners should be aware of how long some oil/gas companies will tie up your minerals via the terms of their lease. The lease primary term is the length of time the lease is in effect during which drilling operations must commence or one of three things will happen...

  1. The Lessee does commence drilling during the primary term and finishes the well. The Lessor would then collect royalties once production begins.
  2. The lease contract might have an option to renew for an additional period, extending the primary term.
  3. The lease will expire.

If your Lessee does drill and hits, the lease will be "held by production" -- "HBP." Hopefully, the Lessee will develop the remainder of your drilling unit in timely fashion. Unless you own minerals under a lot of land, you will not have any control over that. If you do own a lot of contiguous minerals (such as a farm or ranch), you might be able to negotiate continuous drilling operations provisions, which can ensure that additional wells are drilled within a certain time frame.

In most parts of the USA where there is active drilling, it is common to have the oil company offer to lease your land for a primary term of five years. Or maybe three years, plus an option for 2-3 years beyond that. So, the effect is a 5-6 year lease. You always prefer it to be as short a term as possible, but in most cases, five years is reasonable.

However, I have seen some leases where the Lessee is offering to lease for five years, plus a 5-year extension option. THIS IS TOO LONG -- DO NOT SIGN! Ten years is just too long to have your properties tied up.

If you ever get into a position to where you wish to sell mineral rights on your properties, an effective 10-year primary term is going to be very large negative. A mineral buyer is not going to like a 10-year term... that's a long time the Lessee can just sit there and do nothing. And if you never wish to sell mineral rights and just wait it out, ten years is a long time! If you sign that lease, the Lessee has the right to wait until over nine years has passed by before they even start planning to drill you a well. So, don't do it. Negotiate for a 5-year primary term only, with no option to extend.

Thursday, March 12, 2015

Sell Royalties In West Virginia (Sell Royalty Rights) / Sell Mineral Rights In West Virginia

In West Virginia, like other states in the USA, mineral rights and royalty rights are not owned by the state under a landowner’s land (with a few exceptions); they are owned by the landowner or other individuals. In other countries, normally the sovereign state owns royalty rights, oil rights, gas rights and the right to enjoy mineral rights. Do you own mineral rights or royalty rights in West Virginia? Do you wish to sell mineral rights or sell royalties in West Virginia? We buy mineral rights, so, you can monetize these assets; we will pay a lump sum cash settlement to you. If you have been getting royalty checks from oil wells or gas wells, we can buy them regardless what West Virginia your mineral rights are in. We might choose to buy even if they are not producing royalties at this time. We also buy in other areas of West Virginia and other states but as far as West Virginia goes, we have a focus in the Marcellus shale play and the Utica shale play areas. If you wish to sell Marcellus shale mineral rights or wish to sell Utica shale mineral rights, the following is currently our focus area:

- Sell Royalties Ohio County, West Virginia
- Sell Royalty Rights Marshall County, West Virginia
- Sell Hancock County, West Virginia Mineral Rights
- Sell Gas Royalty Brooke County, West Virginia
- Sell Ritchie County, West Virginia Mineral Rights
- Sell Mineral Rights Doddridge County, West Virginia
- Sell Gas Rights Harrison County, West Virginia - Sell Gas Royalties Wetzel County, West Virginia
- Selling Gas Royalty Rights Tyler County, West Virginia

Are you getting oil royalties or gas royalties from Wetzel County, WV? There are several oil companies or gas companies active, such as Statoil USA, EQT Production, Chesapeake Energy, Stone Energy, Trans Energy and Triad Hunter.

For those wishing to sell mineral rights in Tyler County, WV, some of the above companies are active and we can add Antero Resources and Consol Gas. We buy royalties from those properties, too.

In Harrison County, WV, it’s Antero, Statoil and Consol but also add Enervest, Dominion Transmission, XTO Energy, PDC Mountaineer and Hunt Marcellus to the mix.

Active gas companies in Ritchie County, WV, Antero and EQT are the most active but also include Energy Corporation Of America.

For Doddridge County, WV, gas companies include Jay-Bee Oil & Gas, Antero and EQT Production.

In Marshall County, WV, sell mineral rights for properties operated by CNX Gas Company, Chesapeake Appalachia, Chevron Appalachia, Gastar Exploration, Noble Energy, Trans Energy and Stone Energy.

If you wish to sell royalties from producing gas wells in Brooke County, West Virginia, we are interested; the primary operator is Chesapeake.

For those looking for who buys mineral rights in Ohio County, WV, we do! The active operator is Chesapeake Appalachia.

So, to recap, for those selling West Virginia mineral rights, we will buy properties operated by almost any oil company or gas company but the primary operators are: Chesapeake Appalachia, Statoil USA, EQT Production, Stone Energy, Trans Energy, Triad Hunter, Antero Resources, Consol Gas, Enervest, Dominion Transmission, XTO Energy, PDC Mountaineer, Hunt Marcellus, Energy Corporation Of America, Jay-Bee Oil & Gas, CNX Gas Company, Chevron Appalachia, Gastar Exploration and Noble Energy.

There are other West Virginia counties where you can sell gas royalties, so, please contact us. Some parts of this region of West Virginia are in the Marcellus shale play and some have production from the Utica shale play. If you are interested in selling mineral rights or selling royalty rights (NPRI) in other West Virginia counties, please contact us. (If you wish to sell non-participating royalty rights – NPRI – we can buy most of the time.) In general, you can sell Marcellus mineral rights or sell Utica shale mineral rights to us. For those interested in selling Pennsylvania mineral rights (or selling Pennsylvania gas rights), please contact us. Same goes for selling Ohio mineral rights or selling Ohio royalty rights. It's not hard, we will show you how to sell mineral rights.

”Should I sell my mineral rights?”

Mineral owners sell royalties for many reasons. It could be that they want to buy something or wish to retire. Or maybe their interest is small and they are tired of dealing with the paperwork. Perhaps the well that was drilled is not a good one and there isn’t enough income to make a difference in their life, but a sale would bring a lump sum. All gas wells decline perpetually – they deplete. There is nothing we can do about this! Your royalty check will continue to go down over time. So, don’t depend on it staying up where it was in the early days of production; those are the best months. Also, there is a lot of risk inherent to the oil and gas business. Whatever selling mineral rights or selling royalty rights will bring today… there is no assurance that tomorrow will be the same! Obviously, “should I sell my mineral rights” question does not have a cut and dried answer!

Crashing oil/gas prices are no fun. Or the world could see a new technology that takes over a large part of our energy needs. This is a certainty at some point, we just don’t know when. But when this occurs, the value of mineral rights will go down a lot.

We are a mineral rights buyer, but why do we buy? We buy lots of deals and make our company work by owning a lot of acreage -- thousands of acres crossing several states. This allows us to spread risk. Believe me, every deal we buy does not make money. Some are losers. We just hope to have more winners than losers over time. And we constantly monitor trends, so, we can only hope that we are able to sell out ourselves someday when the oil and gas era is coming to an end. But, who knows, it might be awhile, we just don’t know.

Owning producing mineral rights (you are getting royalty checks), means you can sell. We buy mineral rights anywhere in the USA if it’s in an oil or gas producing region. Ritchie County, Tyler County, Wetzel County, Harrison County and other parts of West Virginia is just where we are focusing for awhile. We have bought and own mineral rights and royalties in Louisiana, Texas, Colorado, Wyoming, North Dakota, Mississippi, Arkansas, Utah, Pennsylvania, New Mexico, Kansas and other states.

If you wish to sell mineral rights or sell royalties, contact us. Selling oil rights or selling gas rights is not hard because we do all of the work once you provide your oil and gas lease information. We are not just a mineral buyer in West Virginia and not just a royalty buyer in West Virginia, you can sell royalty rights in many part of the USA.

And for a good explanation of how to sell mineral rights, visit here.

Please call the number below and speak with Bill about a lump sum cash settlement. Bill is congenial and experienced, having bought thousands of acres involving many millions of dollars paid to mineral owners:

(Ask for Bill)
Payday Minerals, LLC
Ph 318-426-0909
Ph 800-664-7650

Or, contact us by using the form below to learn how to sell mineral rights. Give us a good description of what you own in order for to calculate the lump sum cash settlement for your mineral rights or royalty rights (royalties).

>>> CLICK HERE <<< for contact form.

Wednesday, March 11, 2015

Sell Royalties / Selling Mineral Rights In Lincoln Parish, Louisiana

How To Sell Lincoln Parish LA Royalties / Mineral Rights

Are you interested in selling Lincoln Parish mineral rights? Are you wondering who buys mineral rights or who buys royalties in the Terryville field (gas field) or Hico-Knowles field? People have many reasons… they tire of dealing with the paperwork, they want to buy something, perhaps it’s too much trouble, perhaps they need money for some reason and selling mineral rights does not affect their land, etc. Whatever the reason, if you wish to sell royalty rights in Lincoln Parish, we buy there.

The Lincoln Parish, Louisiana parish seat (county seat) is Ruston, LA. The parish has quite a bit of natural gas production, and it is primarily from the Cotton Valley formation and Hosston zone. There are many gas fields in Lincoln Parish, including:

• Hico-Knowles gas field
• Terryville gas field
• Ruston gas field
• West Simsboro gas field
• Choudrant gas field
• Tremont gas field

Who buys mineral rights in Lincoln Parish, Louisiana? Our company will buy royalty rights and also buy mineral rights in Lincoln Parish. If you would like to sell mineral rights or sell royalties located in Lincoln Parish LA, or near the following towns, please contact us:

• Ruston, LA
• Simsboro, LA
• Dubach, LA
• Vienna, LA

We also might wish to buy mineral rights or buy royalty rights in another parish, even if not shown.

Active oil and gas companies in Lincoln Parish include Wildhorse Resources / Memorial Production Partners, Questar (QEP Energy), Nadel & Gussman, XTO Energy, Rabalais Oil and others.

Geological features in Lincoln Parish include the North Louisiana Salt Basin and some anticline structures. There are several productive zones and gas fields but, the Cotton Valley sand is the most widespread zone. The Hosston sand is also found productive in many areas.

Please contact us if you are selling mineral rights from this area; you can also sell gas royalties, too.

Selling mineral rights in Lincoln Parish, LA is not hard! All you really have to do is provide us with basic info about your mineral rights or gas royalties and we do the rest!

Contact Info:

We pay a lump sum for mineral rights and royalties and pay all closing costs. Please call the number below and speak with Bill, an easy-to-work-with expert who has over 35 years experience and has bought thousands of acres and has paid out many millions of dollars to selling mineral owners:

Ph 318-426-0909
Ph 800-664-7650
(Ask for Bill)

You may also fill out the form below if you wish to sell gas rights in Lincoln Parish. If you do so, please describe the mineral rights or royalty rights that you have so that we can properly determine your lump sum payment.

>>> CLICK HERE <<< for contact form.

Monday, January 12, 2015

Sell Royalty / Royalties or Sell Mineral Rights, East Texas

Sell Royalty Rights In East Texas (Sell Royalties) / Sell Mineral Rights In East Texas

Mineral rights and royalty rights can be owned by individuals in East Texas (and all parts of the USA), making our country a unique place in the world. In other countries, the sovereign state owns mineral rights and the right to enjoy oil royalties or gas royalties. And if you own mineral rights or royalty rights in East Texas, we can monetize these rights for you and pay you a lump sum cash settlement. We might choose to buy these mineral rights even if they are not producing royalties at this time but if you are receiving royalty checks from oil wells or gas wells, we can buy them regardless of which Texas county they are in. We buy in many areas of Texas and other states but in Texas, we have a focus area of the following at this time:

- Sell Royalties Harrison County, Texas
- Sell Royalty Rights Panola County, Texas
- Sell Shelby County, Texas Mineral Rights
- Sell Mineral Rights San Augustine County, Texas
- Sell Gas Royalty Nacogdoches County, Texas
- Sell Gas Royalties Angelina County, Texas
- Selling Gas Royalty Rights Rusk County, Texas

If you are receiving oil royalties or gas royalties, there are various oil companies that might pay you, such as Devon, Encana, XTO, Goodrich, BP, Chevron, Exco, EOG, Cabot, Faulconer, Anadarko, Chesapeake, BHP Petrohawk, Noble, Shell SWEPI, Crimson, Halcon, Comstock, Sabine, and others. They have various levels of drilling and not all in the same county. For instance, XTO drills in Shelby County, San Augustine County and Nacogdoches County but not much in others. Sabine mainly has wells in Harrison County, Panola County and Rusk County. Encana was formerly active in San Augustine County and Nacogdoches County but has curtailed drilling at this time to focus on other parts of Texas and other parts of the USA.

There are other Texas counties where we have interest, so, check with us, we might be interested. Some parts of the East Texas basin lie in the Haynesville shale and Bossier shale field. Other parts have some production from the Cotton Valley, Hosston / Travis Peak and Pettet formations. The Eagle Ford shale of south Texas has not been found productive in East Texas but we are interested in that area, as well, such as mineral rights or royalty rights (NPRI) in Fayette County, Lavaca County, Gonzales County, Dewitt County, Karnes County, Wilson County, Atascosa County, Live Oak County, McMullen County, La Salle County, Dimmit County, Frio County, Webb County and McMullen County. Likewise, we buy mineral rights and royalties in the Permian Basin of West Texas. Another area is in the Barnett shale region around Fort Worth, such as Wise County, Tarrant County, Johnson County, Parker County, Montague County, Dallas County, Denton County, etc. So, one can sell royalties in San Augustine County or sell gas royalty rights in Nacogdoches County or sell mineral rights in Shelby County (sell oil rights / sell gas rights) but also you can see that we buy in many others areas.

Why sell mineral rights? Some wells drilled in the above described areas have been poor and might be unlikely for further development by the oil companies. Or maybe a decent/good well was drilled but has since largely depleted. Some mineral owners prefer to sell their mineral rights (or part of them) to enjoy a cash infusion. Everyone has different needs but one thing is for sure -- the oil and gas business is fickle, so, sure-thing cash money is appealing. In addition to the well-to-well risks from location to location, there are large factors providing risk to a mineral owner, such as crashing oil/gas prices or a new technological invention that might take over a large part of our energy needs. This will happen some day, it's just a matter of when. But when it does, oil and gas prices will crash and likely never recover to previous levels. When this happens, the value of mineral rights will fall dramatically, as well. We make our operation work by owning thousands of acres across several states. And we are constantly on top of trends, so, we hope to sell out ourselves someday before the oil and gas era ends.

If you own producing mineral rights such that you get royalty checks, you can sell mineral rights for lands in Texas but also anywhere else in the USA. As for why we buy, again, we and partners own a portfolio of thousands of acres of mineral rights and royalty rights across the USA and we constantly add to this portfolio buy paying lump sum cash settlements to mineral owners so that we can spread risk. So, at this time, we need to add more East Texas mineral rights and royalty rights/NPRI. (You can sell NPRI -- non-participating royalty rights.) It's all about our spreading risk because, believe me, not every deal we buy makes us a profit. It's a risky business but we make it work by buying large numbers of deals. Shelby County, San Augustine County, Nacogdoches County, Angelina County and other parts of East Texas is just where we have a focus for awhile. We have bought and own mineral rights and royalties in Colorado, Wyoming, Utah, North Dakota, Mississippi, Arkansas, Pennsylvania, Ohio, West Virginia and other states.

Please call the number below if you wish to sell mineral rights or sell royalties. Selling gas rights or selling oil rights is easy because we do all of the work once your provide your oil and gas lease info. And remember... we are not just a mineral buyer in San Augustine County or a royalty buyer in Shelby County, you can sell royalty rights in many Texas counties.

There is a Contact Form to the right of this page that you can fill out with your info. Or, send a detailed message via email; see my email below. Please describe what you own and the location. Just give me a little writeup about what royalty rights or mineral rights you own. Be sure to include your name, phone number and email address.