When considering selling Oil and Gas Mineral rights it is important to understand how it will impact your taxes.
Why Sell Your Mineral Rights?
Oil and natural gas mineral rights can be very valuable, but are also high-risk investments. As a mineral owner, it is important to understand the scope of the industry, your property’s potential value, and the associated risks that come with this kind of investment. Mineral property can be valuable and profitable if risk is properly managed, but it is important to look at it as you would any other investment and be both realistic and conservative; risk management is the hallmark of successful investing.
The main reason that people sell their mineral rights is because they want a sure thing. Whether it is to pay off a mortgage, money for retirement, or to pay for a child’s education, there are any number of reasons to cash out your minerals. The peace of mind that comes from a huge check is more than enough reason for most.
Knowing the Risks
It is true that some mineral owners will see enormous profits from their minerals; in fact most property owners have probably heard stories about someone who’s raking it in. The truth, however, is that most people will never see that money come their way.
Oil and Gas is a speculative industry. The rapid rising and falling of natural gas prices means that as prices climb, development of leaseholds happen aggressively, and as prices drop, development ends abruptly; that is why it is referred to as a boom bust industry.
Companies may not place an owner’s property in a drill unit for 5, 10, or even 15 years after leasing; in fact most people will not become part of a drill unit at all. What we are offering is a way to ensure that you see a large sum of money for your mineral interest right now, while we manage the future risk.
Why We Do What We Do
We are willing to pay out large sums for mineral rights precisely because this is a speculative industry. Our Buyers engage in this extremely high risk investment process in order to benefit from positive price movements. Through a variety of client business partnerships we are able use speculator capital to amass significant mineral acreage throughout active areas. This is a calculated risk as we are confident that acquiring enough acreage will afford us the ability to offset potential losses and provide us with a relatively small percentage of highly profitable properties.
This process is both incredibly expensive and extremely labor intensive and most people are not prepared to take on such a high level of risk.
If you, as a mineral owner, are not overly confident that you will see large royalty checks in the near future, consider letting us take on this risk for you. Simply fill out our form to request an offer and we will contact you shortly with a substantial offer to help you make the most out of your property RIGHT NOW!