Advantages of Selling
There are many reasons landowners are interested in selling their mineral interests. In many instances, owners look to convey half of their interests while retaining the other half in hopes of receiving a lump sum at the time, but also being able to receive royalties if, in the future, drilling commences. Here are some of the common reasons we have come across for selling interests.
Uncertainty of drilling:
While most of the areas we work in tend to eventually produce oil and gas, there is no certainty that there will be production. Dry holes can be drilled, seismic testing can reveal the formations are unstable and the decline of oil and gas prices can prolong the process of drilling, also. This is why we advise landowners to convey a portion of their interests at first and if you, the landowner, look to sell the remaining portions in the future, we are more than willing to work with you again.
The need for money up-front:
In a perfect world, all landowners could hold on their interests in hopes of one day, receiving royalty checks once drilling takes place. However, life tends to throw a curve and there are many reasons one would need money to take care of one thing or another. Selling a portion of your interest could help pay off some bills or simply make life a little more comfortable.
In order to determine your ownership, we run title on the property so we can pinpoint exactly how much interest you own. If you are only conveying a portion of your interest, you will be aware of the exact ownership you have retained and will be more familiar with your interest. This helps when you have inherited property or may be uncertain of the exact net mineral interest you currently own.
There are other endless reasons in which you will benefit from selling and we are here to help. Any questions you may have regarding any other benefits to selling, such as taxation, title examination, etc., please ask us. Feel free to email us with questions and we will get back to you soon regarding this matter.