Selling Mineral Rights In Mississippi

Sometimes one has cash needs for various things in life. An option for landowners and mineral owners (some people only own mineral rights and no surface rights) is selling mineral rights. Mineral rights owners have the right to receive oil royalties and gas royalties from oil wells and/or gas wells drilled on their land or a drilling unit which is pooled with their land. This right has a cash value. It is a lump sum cash settlement for potential future royalties and may be a minor amount or a large amount if in an area with high potential for oil and gas production.

We buy mineral rights to add to our significant mineral portfolio in the United States. Over time, we have made this 'work,' meaning we're not 'in the red' overall because we buy a lot of properties to spread risk. Not every deal turns out good for us. And those lucky mineral owners came out smelling like a rose! It's a crapshoot. Even in large fields where a lot of wells are productive, often, the well does not produce as much as anticipated and we lose money on the purchase. On others, we do well. It works for us due to owning thousands of acres across many states. No particular deal will break us. So, the reverse of that is a mineral owner having one tract... that is having all your eggs in one basket. Some people choose to sell to take the sure thing -- cash. It's also possible, depending on size of the tract, for us to buy a portion of what one owns. You can sell and take the cash for the part you sell and gamble on the rest that it turns out good down the way.

SELL MISSISSIPPI MINERAL RIGHTS

We might be interested in buying your mineral rights in any part of Mississippi. If they are producing, meaning you are receiving oil royalties or gas royalties, you can sell oil royalties and we can definitely buy them. If non-producing, give us a call, as well, we might be interested. At this time, we are primarily interested in areas which have some potential for the Tuscaloosa Marine Shale. Several oil companies are interested in the area and have acquired oil and gas leases and have drilled some wells -- Encana, Goodrich, Halcon, Sanchez, EOG, etc. This potential fairway lies in southwest Mississippi counties and we are primarily interested in Wilkinson County, Amite County and Pike County. Possibly a bit of southern Walthall County. Our focus at this time is for those who wish to sell Amite County MS mineral rights and those who wish to sell Wilkinson County, MS mineral rights. If you are interested in selling mineral rights in Mississippi, please give me a call, I'll be happy to work with you on it.

Another site with much information is this mineral buyer site and also this site about mineral rights and selling oil rights / selling gas rights.

Oil & Gas Royalty Rights (Royalties)

In the United States and in some parts of Canada, those who own mineral rights usually own the royalty rights to their proportionate share to the oil and gas production revenue from oil and gas wells. The owner of the executive right is the one who has the right to explore for oil and gas on the property or lease it to an oil company. In return, he will enjoy a royalty, a share of the production. The royalties are usually a minimum of one-eighth (1/8th) of the well's production, multiplied by his share of acreage within the production unit.

For as long as there has been oil and gas production in the USA and Canada, royalties have been bought and sold. One can readily sell royalties in any oil and gas producing region, it's just a matter of finding a willing and reputable buyer. The oil rights or gas rights value varies widely. If you wish to sell oil rights or sell gas rights, bear in mind that if the royalties are paying from a well that is a good producer, obviously, the royalties will be worth more than those from a poor producer. The value is calculated from the projected income stream from future production. The value is also dependent on whether or not the income is declining.

There are many reasons why owners choose to sell oil or gas royalties. Perhaps they wish to buy something or provide for children's education. Maybe the owner just wishes to enjoy life more or to enjoy retirement more with sure-thing cash settlement. If one keeps the royalties, it may take many years to achieve the same amount of cash income that a sale of royalties will produce. And, some owners sell because the royalty interest is small and the paperwork is burdensome. It just might not be worth the hassle of keeping it. A lot of owners find it complicated and just wish to simplify their life and leave it up to a buyer to monitor the production and revenue. Increasingly, older generations who own royalty rights are dying off and children and grandchildren inherit the royalties; the royalty interests are diluted by the number of heirs and many would just rather sell something they know nothing about.

The oil and gas business is daunting, complicated to the royalty owner, but selling royalty rights is not difficult with an experienced royalty buyer. A sale of royalty rights can be accomplished fairly quickly but it can't happen in a day or two. It does take a little bit of time but a good royalty buyer makes the process easy, as he will do most all of the work, making sure that the royalty interest is transferred properly with the county and also the oil and gas company which operates the oil or gas well. Whether you wish to sell oil rights or sell gas rights, you can enjoy a lump sum settlement payment for your royalties.

For more information about selling oil and gas rights, read this site about selling royalties or contact this blogger.