The Six-Step Method to Buying Oil and Gas Royalties

Gas Royalty buyers

If you are planning to make a small to medium investment, we suggest you an investment in buying mineral royalties. The reason is that the returns from the investment are between 12%-30%. The other reason is that the small shop’s investment can also get into the business if they understand this business. This article is going to explain how the gas royalty buyers should go through this process. For the sake of simplicity, let us assume some names:

·  Firstly, you should consult legal advice that is related to royalty.

·   You should create and establish a legal entity with which you can buy royalties on your own, or create a partnership or a company.

·         You should obtain the required funding for buying royalties or have a war chest for the purpose.

Whoever has the ownership of oil and gas royalties this means they have mineral rights. There are only few cases in which it is not true, but in most of the cases oil royalties and mineral rights are interchangeable terms. Gas Royalty buyers after buying the royalties own the mineral rights. The phases of buying minerals occur in these phases:

  

•       Finding the people who own the royalties and are willing to sell them
•          Offer them a reasonable price in exchange of their royalties
•          Answering calls of the sellers inquiring about the deal
•          Making decision quickly whenever a suitable offer is available in the market.
•          Following up with the sellers and sending them the legal papers
•          Paying the royalty owners and filing the deed with the correct county courthouse.
•     Now we will discuss the details of the above mentioned phases:

Phase one:
This is an important part of the process. The biggest problem in the process is locating the mineral owners who are willing to sell their royalties. For this purpose you can check out division orders, these can serve you as a lead to locate mineral owners. Phase Two:  propose an offer to the owner that they cannot refuse.

Phase two: 
Make sure the royalty someone is selling you is real, and they are the actual owner of the royalty. Do a research for it and do it rapidly, before they change their mind or sell to someone else.

For more information visit our website:

http://www.uniroyalties.com/

Gas Royalty Buyers – Their Importance in Your Life

We all might have heard the term “royalty” at more occasions than imagined, but have we given any serious consideration to the topic.

Do you remember?

In 2006, the Beatles, a very popular American band, sued two record companies of the United States for a heavy amount of 25 million dollars in royalty claims. Earlier, Universal Records won a case against the widely popular rapper, Eminem who filed the case for half of the royalties to his songs that were downloaded online.

What is royalty?

In its simplest form, a royalty is a sum of money that is negotiable, constitutes your share in percentage and gives the gas royalty buyer, the authority to market the commodity or product. In gas and oil ventures, for example, the landowner allows the machinist to drill the site for gas and oil. In addition, whatever extracted is to be shared by the parties involved at a pre-determined rate.

In other case, if the owner of the land in question is the government, then the terms are changed a bit. The state has the option to reserve its share until the operator / driller can yield returns on his investments.

The gas and oil industry is considered capital-intensive and trading oil and gas royalties is the next big thing if you are short on cash. Just try serving a notice and you will definitely be surprised by how many gas and oil management firms will contact you throughout the day to bid.

If you were really into it, then you certainly would not mind doing a little legwork. It will not be that difficult either because the strong competition will force the gas and oil firms to offer bonuses and incentives just so you will lease or sell them the royalty interests. If you are completely blank on what to do next then how about free-of-cost management advise? If you are curious about your property’s value, then do consider free assessments from a pack of experts and engineers.

How would it feel like if you had the opportunity to earn big payoffs on your non-producing minerals and how about a formal acceptance bonus as well?

Gas royalty buyers generally shoulder any processing fees and property taxes there are concerning the lease or sale of your mineral royalties. If there is an ideal time that you could rekindle with your lawyers then this is it. Even if the company that is dealing with you is trustworthy and you would even gamble your property, it is still advised to consult with your own legal counsel. It is just to have a clear perspective on the contract and whether it will be of any benefit to you.

To be on the safe side, it is a good idea to collect and preserve the information about your property like documental proof for the ownership of land, proof of no litigation cases in any of the courts as well as any previous lease agreements. Once you are all prepared and ready, you can start the negotiations for your mineral royalties with a gas royalty buyer or an oil royalty buyer.

Uni Royalties Ltd. is a petroleum management firm that has a wealth of experience in the oil and gas industry. We are oil and gas royalty buyers that carry out free assessments for your land and help in maximizing the returns on your mineral royalties. If you have any questions, please do not hesitate to call us on our toll free number (1 888 916 0220). 

Alternatively, you can also visit our website, http://www.uniroyalties.com/gas-royalty-buyer for more information.

7 Easy Steps to make it Simple for the Gas Royalty Buyer

Gas Royalty Buyer

Over the years many oil and gas companies have developed widespread royalty interests (along with their leasehold positions). These interests are then usually converted to cash to support their search and production efforts. If you look through the eyes of an investor, you will see these royalty interests as liable streams of revenue. However, most sellers find it difficult to make proper transactions with the gas royalty buyer, thus making it tough for the royalty gas buyer to make a decision.

We can give you a step-by-step help on how to approach the gas royalty buyer with an attractive royalty package:

1. Show the Buyer what you own: every purchaser wants to get a deep introduction on their purchase, so tell them everything in detail. Make a spread sheet adding all the details there. For example: buyers might be keen to know about the wells in which you own a royalty interest, to solve this problem, simply add a row In the spreadsheet for each well you are selling. Don’t forget to add a little legal description, the name of the well and mention your stake ownership in the well.

2. Make it Clear to yourself and then explain the Buyer: the most important question for the gas royalty buyer is whether you are selling only the revenue interest generated on each well or are you selling your interest in the original leases? So, you need to be clear to yourself about what you are selling and then approach the potential buyer openly. Otherwise, they can back out and waste your time.

3. The Gas Royalty Buyers Should Know the Value of your Royalties:show themsix months of production checks. This will act as a proof that yes! You are being paid on the royalties being offered. However, keep it clear as it is not the same as getting a third party evaluation of the worth of the future productions.

4. Price your Royalties to Move: the market will tell the worth of your royalties, but you should know that they should be priced at around the perceived value of 60 months of production. Obviously this amount can increase or decrease depending on so many external factors. If the gas royalty buyer is keen for a long term flow of cash, then he may obtain ROI from the income growing over time that surpasses the purchase price.

5. Keep your Purchase and Sale Agreement Ready Before you Offer Royalties for Sale: doing this will minimize the chances of finishing being delayed; i.e.: if the buyer plans to start changing boilerplate language in a contract for sale that still have to be drafted. So, to avoid this keep your PSA ready before you plan to start offering your properties for sale.

6. Prove that you ownit:you should prove that you own it with title documentation. It is crucial that you allow the gas royalty buyers to review all the documents before proceeding.

7. Be Ready to Convey: once the deal has completed and the ownership changed, the first thing you need to do is to notify all gas operators (who are making the payments) about the change of ownership. Royalty divestiture is a complex process and requires unnecessary time for the exploration and the production.
This happens because seller is not clear about the process and goes through many small things that are not the company’s main business focus and are a complete wastage of time.
But, by keeping these 7 steps in mind, you can make things simple for the gas royalty buyer and the royalty divestiture process can go much smoothly and easily.
 Watch our YouTube Video of Selling Oil And Gas Royalties:- https://youtu.be/gDDuTtwk_3s