Selling Oil and Gas Royalties the Better Way

Selling oil and gas royalties is a demanding task, requiring knowledge about the nuances and intricacies involved. To sell oil royalty to a professional company – one with years of experience – is a daunting venture. Being well-informed and confident in the field is what will make your negotiates worth the time and effort.

Mastering the Skill of Selling Oil and Gas Royalty

Typical Buyers

For starters, you need to know whom you are dealing with. At present, there are thousands of private and public companies willing to buy oil and gas royalties. Majority of the customers investing in these mineral resources are independent brokers who must essentially attain the approval of their clients before accepting offers.

The Negotiation Process

This is where you take center stage. Do not accept the first offer you get – this is simply the baiting bid; a lower offer compared to what the client can actually invest. Always remember: negotiate on your own reasonable terms. Keep in mind the amount of mineral you can provide, the location of production, and market competition.

Handle all negotiations with care. The client will offer counter-offers based on your outlined terms of lease. Being attentive and confident during negotiations guarantees a successful desired outcome.

Favorable Lease Terms

Be sure to discuss important monetary information, such as initial terms of the lease, percentage royalties shared and bonus amount of the lease. On average, terms of the lease revolve around a three-year mark. Be careful: do not agree to any extension that might give the broker leverage at the end of the lease.

Knowing Different Clauses

Royalties vary considerably depending on certain criteria. As a general rule of thumb for the royalty spectrum, 12 percent is the lower end and 25 percent is the higher end. To save yourself from being scammed or cheated, keep a checklist of all favorable terms. A Vertical Pugh Clause frees all depths under the deepest production zone. However, a Horizontal Pugh Clause releases frees all the land, even which is not included in the negotiations.

It is advised to decline the ‘Mother Hubbard Clause’, restricting the lease to oil and gas strictly. Moreover, it is preferred that the warranty title be deleted. Once these standard terms are acquired, the final negotiation process can begin.  

Visit: http://www.uniroyalties.com/oil-gas-royalties

Selling Mineral Interests to Support Energy Independence

As everybody is aware of, petrol costs skyrocketed last year. Abruptly we tend to be all giving payments over $4 a gallon at the pump, and our beloved cars and pickup trucks lost a number of their charms. Varied factors helped brought us to it. In the end, the spike in costs drove home for several people what proportion the U.S. lies in the pity of oil-rich countries. Seventy percent of the oil we tend to use is foreign, a lot of of it from countries that hold no love for Americans and our lifestyle. It is a shaky position to be in, and it weakens our stance in diplomacy.

T. Boone Pickens plans to modify that this man made billions with the oil and gas business understands the pros and cons of its workings. He needs to push the U.S. to reduce its dependence on foreign oil. His proposal to try thus is two-pronged.

First, Pickens would love to envision a considerable increase in wind-generated power. Since the U.S. has the world's biggest wind-power passageway, we tend to harness that power and utilizing it to provide up to twenty of the electricity we tend to use. This might be accomplished in 10 years, in line with his set up, whereas any strides in each wind and alternative energy are tried.

Secondly, we tend to might use our huge reserves of fresh fossil fuel or natural gas for each power generation and as a transportation fuel. Firms that are specialists on gas current trends-can facilitate bringing this. A recent research shows that the U.S. has bigger stores of fossil fuel than the other country. Comparatively recently, technology has been urbanized that may faucet into significantly deep reservoirs of fossil fuel.

One such reservoir within the news recently is that the Marcellus Shale. Lying in Pennsylvania, New York, and West Virginia, the Shale is offering the combined attractions of being, for the most part, untapped furthermore as in close proximity to East Coast markets. They will keep their land however, sell oil and gas royalties there to, conducive to the answer to the nation's energy downside and their own bottom line at a similar time.

Pickens predicts this natural gas reserve as a brief live. Like all fuel, the number of natural gas obtainable is finite. Yet, if Congressional bill promotes the utilization of natural-gas motorized vehicles, the present reserves might limit our immediate dependence upon foreign oil whereas different engines based mostly upon renewable resources are developed. Visit http://www.uniroyalties.com

Contact Us

UNI Royalties, Ltd. 

P.O. Box 1959

Parker CO 80134

Phone :( 720) 663-1187

Toll Free Phone: 1-888-916-0220

Toll Free Fax: 1-888-491-8525

Local Phone: 1-720-663-1187

Local Fax: 1-720-746-2899

E-mail: sellroyalties[at]gmail.com