Saturday, February 24, 2018

Sell Utah Mineral Rights FAST

Production of oil and gas in Uintah occurs mostly in the Uintah Basin, primarily in Duchesne County and Uintah County. Production is many decades old. The first commercial production was in 1948 and, gradually, exploration built an industry that hit a peak in 1984. From 2003 to 2014, a resurgence of oil and gas production occurred but since, it's fallen off the cliff, falling to where it was in the mid-eighties.

Sell Utah mineral rights?

Some are fortunate to own mineral rights, and this article is speaking of oil and gas rights, not hard minerals such as sand, gravel or coal. Mineral rights are typically leased to an oil company (oil and/or gas company) because drilling oil and gas wells is hugely expensive. Modern oil/gas wells cost several million dollars apiece just to find out if anything is there down below, and millions more to complete and establish production in commercial quantities.

If one owns mineral rights or royalties and drilling has occurred, royalty checks starting coming in from the production. The oil company drills and operates the well(s), the royalty owner (mineral rights owner) enjoys a royalty check from time to time, often monthly. This royalty varies between one-eighth to one-quarter of the value of the oil/gas produced. It is likely to come from one of several active companies in Duchesne County or Uintah County, Utah. Companies include:
  • Bill Barrett Corp
  • Crescent Point
  • EP Energy (El Paso)
  • Finley Resources
  • Kerr McGee
  • Newfield Production Company
  • Ultra Resources

The companies listed above are not mineral rights buyers, they are exploration and production companies, commonly called 'operators' in the oil and gas industry.

A search of production records reveals that all wells drilled since mid-2017 from the operators above have yielded both oil and natural gas. A lot of modern wells produce a pretty balanced mix. Most modern wells in this part of Utah utilize 'horizontal drilling' and 'fracking' to extract oil and gas from various formations deep below ground. Without these two techniques, oil and gas production would be a fraction of what it is today. It is largely a safe practice, having been perfected over several decades involving tens of thousands of very expensive wells!

So, what should one do, is selling Utah mineral rights a good idea? Each case is different and many factors come into play for someone who owns mineral rightss but suffice to say, cash money in hand, rather than a hope and a prayer, has real world value, today. People sell for many reasons.

Perhaps they inherited it and really don't understand oil and gas royalties, it's confusing. It could be because they are tired of dealing with the attendant paperwork, or just too much hassle. Often, it's because they want to buy this or that with the cash settlement, the lump sum, rather than wait for royalty checks to dribble in. Or they want to settle up their estate, as they are elderly. As for getting a lump sum check, it's especially appealing if the royalty checks have dwindled. Sometimes, selling royalty rights can bring a nice payday, it depends on the potential for future profit for the buyer. But dwindling royalty checks is a common reason to sell. Such is the plight of oil and gas royalties... over time, they always decline, because oil and gas wells are depleting assets from day one.

A big reason for to sell Utah mineral rights (or any mineral rights) is because it removes all risk. Oil and gas exploration and production is anything but certain. Plans (for oil companies) change. Things sometimes go wrong. Exploration or production in an area might present unforeseen problems at the time drilling initially occurred. Things happen. So, taking a lump sum payout removes all risk because nothing is more certain than cash money. Believe me, not all purchases turn out well for the buyer. It's a gambler's game.

If you wish to sell mineral rights in Utah, contact me, and we can get a sale completed really quickly after you provide information about what you own. It's not a difficult process if you're dealing with a professional with a lot of experience, and I have a lot... over forty years at this! I don't know why I keep doing it, I can only say that I like doing it, I like dealing with people and giving them money, lol. I can complete a sale quickly, it is much, much faster than doing a real estate deal. We just have to pass some papers back and forth to transfer ownership and get you your lump sum cash paycheck.

More information about selling Utah mineral rights, especially Duchesne county mineral rights or Uintah county mineral rights, can be found here.

Thursday, February 8, 2018

Selling Mineral Rights In Amite County Mississippi

Mostly through inheritance, many people own mineral rights in Amite County, Mississippi. A lot of people are surprised to learn that they own the mineral rights or "oil rights" when an oil company landman gives the a call to secure an oil and gas lease. Nice surprise!

Certain tracts of land in that part of Wilkinson County, Amite County and southwest Pike County right along the Louisiana line might be prospective for oil and gas exploration. It is part of an oil 'play' called the Tuscaloosa Marine Shale or "TMS" for short. The TMS is a geologic formation that is known to contain oil but as of yet, has not proven itself to be widely commercial. "Commercial" meaning it makes a profit for the oil company drilling wells in that area.

The TMS has seen dozens of wells drilled over the past couple of decades. Some production was found and in a few places, it's pretty good, as far as oil wells go. In a lot of places, it's not good. Drilling has identified an area that will produce oil, it's just a matter of can the oil companies do it and make a profit. So far, they have tucked their tails between their legs and ran away!

But one company from Australia is willing to take another shot at it. The company is called Australis Oil & Gas Limited and they have formed a subsidiary to try the TMS called Australis TMS Inc. The company bought the oil leases owned by Encana Corporation, one of the companies that gave up.

Another company which has already tried many times in the TMS by drilling deep, expensive wells after securing oil leases from mineral rights owners is Goodrich Oil. They still hold quite a leasehold in the play. Here's to hope that Australis or Goodrich (or somebody!) can figure it out.

If you own mineral rights in southern Amite County (oil rights) or southeast Wilkinson County along the Louisiana line and don't wish to wait any longer for something great to happen in the TMS, you can also sell mineral rights and enjoy sure-thing cash. In some instances, it does not matter if your tract is leased or not. You may be able to sell either way. There is no way to know if the TMS will work out or not, so, for many, it's a great way to enjoy a big cash payday. Or, you can also sell, say, half of your oil rights and gamble with the other half that the TMS turns out good!

To find out if selling mineral rights in Amite County or selling mineral rights in Wilkinson County is an option for you, contact me through the form at the Upper Right section of this page or give me a call and I'll be glad to discuss it with you. Phone number is 318-426-0909.

Good luck to all!