Selling Oil And Gas Royalties:
Are you thinking about selling oil and gas royalties? Charging Viking Oil & Gas can help you. Just give us a call and we will provide you with a free, no-obligation offer to purchase your interests.
Charging Viking Oil & Gas is one of the leading purchasers of oil and gas royalties. Our team has over 15 years of industry experience and we have purchased interests in thousands of wells across the country. We know that the decision to sell royalties can be a tough one to make. At Charging Viking Oil & Gas, we are committed to building relationships with the owners we work with and making sure that each owner really understands the value of his or her interests.
Why sell royalties:
Owners consider selling oil and gas royalties for a number of different reasons. Oil and gas wells experience a gradual decline in production until the wells resources are depleted. This decline is also seen in the size of the royalty checks received and many owners chose to sell royalties when they see their monthly cash flow getting smaller and smaller. Others would simply rather turn years of monthly payments into an upfront lump-sum cash payment in order to buy a house, buy a care, pay off credit cards, clean up an estate, etc.
Whatever the reason, selling oil royalties or gas royalties is a personal decision but we are committed to making sure that you have the information that you need to make the best decision for your own situation. And we are always willing to help answer any questions you may have.
How Royalty Interests are valued:
Our team combines engineering skills with financial and economic expertise and uses the latest technology to perform decline curve analysis as well as economic analysis. Our engineering analysis studies the decline in the historical production rates from the wells involved and other nearby wells in order to project what each well can be reasonably expected to produce in the future. We compare our projections with the prices of Oil and Gas Futures to understand the present value of the future expected cash flows from the interest. Our industry experience allows us to make very competitive offers for royalty interests.
If you would like more information about selling oil royalties or gas royalties, we are here to help you. We will do all we can to help you understand the value of your interests and can give you a no obligation offer, free of charge.
Selling Mineral Rights in Texas
Selling Mineral Rights:
Are you looking for a way to sell mineral rights? If you are interested in selling mineral rights in Texas, or in the surrounding states, we may have a solution for you. Charging Viking Oil & Gas purchases mineral rights in multiple counties and states all around the country.
When making a purchase offer, we consider a number of factors to determine the appropriate value to assign to the interest. The most important considerations to take into account are whether or not the interest is a producing or a non-producing interest and whether or not the mineral rights are leased or unleased.
Producing vs Non Producing:
Producing mineral rights are those which are included in a drilling unit where an oil or gas well has been drilled. If you own producing mineral rights, then you are receiving royalty payments from the well or wells in your drilling unit. If you are selling a producing mineral interest then you are really selling oil and gas royalties that are due to the owner from the production of oil and natural gas.
When you sell an oil and gas royalty on a “producing interest,” the purchase price is typically calculated by finding the present value of the remaining cash flows that are expected adjusted for oil and gas price trends. However, when you sell mineral rights that are non-producing, the purchase prices is typically quoted as a dollar amount per net mineral acre. This amount can vary based on the amount of leasing and drilling activity in the area, the production levels of nearby successful wells, as well as the prices of oil and gas.
Leased vs Unleased:
When an oil and gas company signs a lease with a mineral owner, they are reserving the right to drill a well during the term of the lease. If a property is not leased, we must consider the surrounding leasing activity and drilling activity. But if the interest is leased, then the terms of the lease will play a role in determining a value. We must consider the royalty rate given in the lease contract as well as the remaining term on the lease and any special clauses that may be included. The more favorable the lease terms are, then the more valuable the leased mineral rights will be.
If you believe your mineral interest is leased but do not have a copy of the lease, you can normally request a copy from the county in which the minerals are located. For instance, an Oklahoma family selling mineral rights in Texas could request a copy of their Oil and Gas Lease from the County Clerk’s office in the county in Texas where the minerals are located.
If you are interested in learning more about selling your mineral rights, simply call our office to discuss. Your information will be sent directly to one of our team members who will contact you within 24 hours.
Or feel free to contact us directly by phone or email. We are here and ready to help!