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Why sell your royalty or mineral interests? This is a question often asked by mineral and royalty owners alike. With a down-turning economy, cash flow can be tight. You may be receiving monthly payments for your oil or gas royalties, but these don’t always accommodate the financial assurances you need.
Some advantages to selling your oil and gas royalties or mineral interests are:
- A large, lump sum payout rather than monthly, quarterly or yearly checks.
- Eliminates the expenses for trusts, estates, partnerships and monthly distributions.
- Eliminates the paperwork and accounting hassles.
- Converting your asset from depleting to non-depleting.
- Allows estate consolidation or liquidation.
Aegis Energy Partners, LLC is dedicated to providing you a fair market price for your producing and non-producing properties.
Unsure? SELL HALF!
We understand your concern about selling mineral rights, many people feel the same way, but what they have found was that by selling 1/2 of the mineral rights and keeping the other 1/2, they were able to hedge their bets on both sides of the opportunity. You receive a lump sum of cash up front and still retain the upside for the long term with the other 1/2. It's a good approach to take away some of the risk. In actuality, it could take years or even decades to get a well producing on your property, and even then it's a gamble on how the well will turn out. For instance, if a dry hole is drilled on or even close to your property, this could considerably devalue your mineral rights.
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Assuming:
- 5.4 Million Cubic Feet Initial Production Rate
- Royalty owner would have 10 acres leased at 1/4th royalty
- Unit Size of 640 acres
- $5.00 price per MCF of gas
Landowner royalty would be:
- 1st Year Average Monthly Production - $1,712.92 per month
- 3rd Year Average Monthly Production - $551.92 per month
- 5th Year Average Monthly Production - $328.08 per month
The figures above are for purposes of the example only.
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