A few reasons why selling all or a portion of your mineral rights could make sense …
Uncertainty of whether your property will ever be drilled by an oil and gas company
New exploration techniques have helped create countless millionaires throughout our country over the last decade, but the reality is that most mineral and royalty interest owners that are counting on a huge pay day through oil and gas production from their properties are generally left very disappointed. Major oil and gas companies lease considerably more land than they can possibly drill and, unless your property happens to fall in one of their higher rated areas, the odds of you ever seeing anything over and beyond your original lease bonus check can be extremely slim. And then there is always the possibility of a dry hole or poor producing well being drilled on your property or a dry hole or poor producing well drilled on nearby lands which essentially condemns your property for exploration.
Do the math! Even with a good well it generally takes many years for royalty income to match sale proceeds
When estimating the potential value of an oil or gas well being drilled on your property it’s important to obtain actual production information for wells that have been drilled in your immediate area if possible. Every state has its own requirements for how soon after a well has been completed that production information must be made available to the public. You will also need to determine what the typical size of a drilling unit or production unit is in your area and then estimate what portion of that unit your mineral interest would represent multiplied by the royalty on your oil and gas lease. (Example: 20 mineral acres owned within a 640 acre production unit with a 15% royalty would be calculated as follows … 20 acres divided by 640 acres = .03125 x .15 = .004875). This percentage would then need to be applied to a typical production rate for wells in your area to estimate what your possible royalty income could be and how long it would take for your royalty income to total the amount offered to purchase your mineral interest. Many mineral interest owners are surprised to learn that even for an above average well it’s not uncommon to require 5 to 8 years for royalty income to equal a purchase price.
The Apache Land staff would be happy to help you in working up a comparison for your mineral interest.
A poor producing well drilled on your property could hold your lease indefinitely
Once an oil or gas well is drilled on your property even a very small amount of production each month can generally hold your oil and gas lease indefinitely with no additional wells required. Mineral interests held by poor production can easily turn what was once a very valuable asset into a very poor business decision.
The value of your property could free fall due to market conditions out of your control
Oil and gas are commodities and subject to supply and demand fluctuations. A substantial drop in market prices for oil or gas can quickly discourage operators from drilling in certain areas and possibly cause them to abandon an area all together.
Eliminates or reduces risk with cash in hand you can use right now for safer investments
As a mineral interest owner, you’ve no doubt had people tell you that you should never consider selling your mineral interests and, if those interests are located in a prime production area and you’re confident your lands will be drilled within your lifetime, holding onto those interests could make perfect sense. But if you have more questions than answers about the future value of your asset it might be time to take a close look at your options. Uncertainty about the oil companies drilling plans, fluctuations in oil and gas prices, and the rapid depletion of production for wells in the area, is convincing many mineral and royalty interest owners to reduce or eliminate their risk by converting their interest into a lump sum cash payment.
Find out what your mineral rights could be worth!
Apache offers free, no obligation mineral valuations in a matter of days
Estimating the value of your mineral or royalty interest involves quite a bit of science, but requires minimal effort on your part. All we need is the location or legal description of your property, the number of mineral acres that you own or that your royalty interest can be applied to, the terms of any oil and gas leases on your interests, and copies of recent royalty statements you’ve received from any oil companies operating wells on your lands. Our highly experienced team of oil and gas exploration professionals will then begin the valuation process by utilizing very sophisticated engineering software that factors all necessary variables such as existing production in the immediate area, typical production decline rates, spacing and drilling unit rules, drilling activity and future exploration by active operators in the area, geological trends, access to pipelines, lease bonus history in the area, any surface challenges, current commodity pricing, and much more.
It’s as simple as requesting an offer by filling out the attached form or giving us a call
Complete our Request An Offer Form or Call Us at (888) 428-4811
You’ll have complete privacy with our guarantee that your information will never be shared
Any information that you provide to Apache Land and Royalty will be used exclusively by Apache representatives for the evaluation and possible acquisition of your property and under no circumstances will any of this information be shared with anyone or any company outside of Apache and its acquisition entity.
Why Apache Land and Royalty?
Over 25 years of experience in mineral acquisition and leasing
Apache Land and Royalty is a company based in Littleton, Colorado that specializes in the acquisition of mineral, royalty and working interests in most of the active oil and gas exploration basins throughout the country. With over 25 years of experience in the oil and gas industry providing title and leasing services to oil and gas companies of all sizes while working closely with literally hundreds of mineral interest owners, this team of seasoned veterans has developed a unique ability to help mineral and royalty interest owners in realizing the maximum return on their properties. By focusing on the long term potential of an asset and spreading the associated exploration risk across numerous properties, Apache is able to pay mineral and royalty interest owners top dollar for their interests quickly and painlessly at absolutely no cost to the owner.
We’re committed to helping you realize the maximum return for your property
You’ll get friendly, straight talk from the Apache staff with absolutely no pressure
You can earn generous finder’s fees for introducing us to other mineral owners considering selling
Apache Land and Royalty welcomes referrals for the possible acquisition or leasing of mineral interests owned by family members, friends, and neighbors and is prepared to pay generous finder’s fees for any leads that become Apache customers. Please give us a call if you would like to find out more about how this unique referral program might put great money in your pocket!