Learning the trade of leases of oil and gas royalty

Nowadays, almost everyone seems to be in a need of money. With the growing number of expenses, it is getting difficult for people to provide for their families. Some people have adopted the famous barter-trade route of craigslist to meet the needs of their families. Others have chosen to lease their rooms and property to earn some extra cash out of it. Many people do not know that they can make a profit from deep-pocketed petroleum and mining companies with whom you can strike a beneficial deal on the basis of “working interest” agreement.

As an easy way to generate an income, many people have opted to trade oil and gas leases on their property as it’s an easy way to earn off the land they have already invested in. The companies invest in the exploration cost and mineral production or petroleum extraction, the individual is saved from this burden. Working interests are beneficial for the owner of the property; they are only concerned with the portion of the proceeds of the land on which the exploration companies have agreed to invest in.

In areas where oil is not common to be found especially in mountainous areas, there is an option to sell mineral rights to extract other minerals such as copper, gold, quartz, topaz or amethyst. These are lucrative commodities and they are high in demand. In areas like West Texas one commonly sees a lone pump jack; this indicates that the land owner has leased his land to an oil and gas company. As in the Unites states of America, there is a geological diversity, one can easily trade oil and gas leases off their land no matter what land one posses. As the demand of energy production has increased globally, land owners especially in the southern states of America opt to sell oil and gas leases off their lands.

The expected royalty is one-eighth of the production that implies that it is $125000 per $100000 per working interest is generated for oil and gas royalty. Provided that there is a very little or no upfront investment, the profit is quite huge. Conveniently, the company, which has signed the agreement, is responsible for logistical burden of processing sites. Logistical burden would require specialized expensive equipment and expertise which the landowner usually does not possess. If you have a land in possession, you may want to contact a mineral or oil gas exploration service near you. You may want to contact a professional to carry out a geological survey on your land. Your financial security may be just around the corner and you have been sitting on a gold mine all this time. UniRoyalities Ltd. is the best source available if you want to evaluate your oil and gas lease in order to maximize your asset withdrawal. It specialized in a rapid evaluation and processing of your oil and gas investment lease and provides a complete solution on the behalf of the investor.

Purpose of Selling Oil and Gas Royalties for Good

Oil and Gas Royalties

If you have been coming across the statement “Oil and Gas Royalties” and wondering what is that, you have come to the right place. Oil royalties are a great way to earn a significant amount of capital without having to sell the land or property. It is quite like a lottery for a landowner, where he or she can actually make more capital than the price of the land in some cases.

Oil royalties are basically the rights to extract oil from a particular piece of land or property. The landowner sells them to oil companies in exchange for continuous and regular payments. The logic behind selling oil royalties is such that the landowners usually do not have the kind of funds required to extract oil but oil companies have that resource and are always on the lookout for landowners who can are giving oil royalties for sale. This is a win-win situation for both the parties because the oil company does not have to invest hefty amounts in acquiring land and the landowner earns capital without having to spend anything at all.

However, this transaction is not as easy as it sounds on paper for either of the parties. When a landowner decides to put his oil royalties for sale, he will need to acquire knowledge about such transactions to ensure that there is no scam or fraud. Moreover, it is simply important to have complete knowledge about the entire process to ensure that no one takes undue benefit from you.

 Finding an interested party is not quite difficult because most interested parties advertise on the Internet and otherwise. Oil companies also put adverts when they are on the lookout for oil royalties and similarly, landowners who have oil in their land also advertise so oil companies can find them easily.

For this, both the parties will need to do careful research in order to find decent dealers and make a successful deal. Moreover, research is required to decide on a decent amount of cash as oil royalties. When it comes to payments, it all depends on the kind of deal and the company an oil royalty seller is dealing with. Some companies prefer making a lump sum payment in the beginning and others like breaking the payment into royalties i.e. continuous regular payments over the course of the duration settled in the contract.

While some people believe that it is best to take a lump sum payment in the beginning because it can be invested elsewhere and benefits can be gained from there. However, at the same time there are people who believe that regular smaller payments are better so it will all depend on the deeds and terms and conditions of your contract.

It is always advised to take help from professionals who can help in various areas of the contract and ensure that no fraud or scam takes place. Their experience can always benefit beginners. So if you are considering selling oil royalties, make sure to get in touch with an expert or lawyer.
http://www.uniroyalties.com/

Oil and Gas Royalties

 

Oil & Gas Royalty

In this article, we are going to focus on 4 things, namely; what a royalty and mineral rights is, how is it calculated and what is it based on? Let us begin with a small description of mineral rights. We all know in most countries all the mineral resources belong to the government. This may include: valuable rocks, minerals, oil, gas, etc.  The various organizations in those countries have no rights to sell or extract those minerals without the consent of the government. However, some countries give the property owner the legal rights to those minerals that may be present underneath it. This is called, ‘mineral rights.’

At times a company is not willing to buy the property because they are not certain that it may contain any minerals. In such cases, the company will lease the mineral rights or a portion of those rights. When the production of oil and gas begins, the landowner is eligible for some part of that production. This money is known as a, ‘royalty payment’.  The amount that the owner will receive will depend on the lease agreement that was signed earlier. 

Oil royalties can be paid as oil. In this case, the landowner may receive the oil from the lesser (company owner) and market it. The landowner has to understand that receiving the royalty in terms of oil is purely a disadvantage. The better way would be to receive cash at the posted price of oil. When talking about gas royalties they are paid as financial units in the country. The landowner has the right to specify separate royalties for oil and gas. The landowner should specify the due date of the royalty payment, and in case the date is passed there can be an interest charge for the late payment.

How are the Oil and Gas Royalties Calculated?

Drilling and producing oil and gas costs money. These costs are divided between the landowner and the production company. The company has to bear the cost of the exploration, production and marketing. The expenses that occur after the production are either solely borne by the production company, or shared between the two. There are 3 methods to calculate the royalties:

1 

• The first method is the market price and the value of the minerals.

• The second method ties the royalty to the actual income received from selling the minerals. This method is mainly used for computing gas royalties.

• The last method is called the ‘inline’, where the landowner takes belongings of the minerals, even before the minerals are marketed by the production company. This method allows the landowner to receive more royalty, and flexibility, because it is based on the decisions of the market.

Three Bottom Lines

• ·         Get Professional Assistance: mineral rights royalties and mineral lease royalties involve huge sums of money and is a very complex process. Always involve an attorney for further assistance. If you do not have an attorney, please contact the local bar association for guidance.

• ·         The surface owner has rights: in general, when we talk about the lease agreement, we are talking about the production company, however, we should not forget that the owner has some rights as well.

• ·         Buyers and Sellers beware: in order to benefit from the production of minerals, it is very important that you and your attorney has created a good contract. Two things will determine the success of your deal, namely; negotiating skills and knowledge.

If you own a piece of land that has been unused for long, then the best option in this case would be to sell your property or lease it. There are many individual’s looking to purchase your mineral rights royalties. Why not benefit from this land now? You can never be sure of the price of the minerals in the near future, especially oil and gas.  So, if you are short on cash or if you are sure about your land being rich in minerals, give it a try. This can bring large amounts of money instantly. But, you need to be sure that the company you are selling your royalties is a reputable one and they should be willing to make a fair deal. Make sure they produce the value as soon as possible and end the transactions quickly. Look out for the hidden costs etc. Be wise and be patient. The landowner should have some knowledge on selling mineral rights. In case, they are not aware of any knowledge, it is best to use some legal help. The document also includes what type of exploration will take place to extract the minerals. This is done to protect the land from harmful and unnecessary mining and drilling. One of the other reasons to involve a legal help is to make sure the rights of the owner are protected

Contact Uniroyalties now. It is a famous name in the market. They evaluate your oil and gas lease and maximize your asset withdrawal. Uniroyalty, believes in fast evaluation and processing of your investments of oil and gas. They will provide you with a complete solution. 

Watch out the video about Buy Oil Royalties  https://youtu.be/DXQ7OWOk38U