Certain Parameters to Consider Before You Sell Oil and Gas Lease

It may seem the company pulls out a figure out of some magic hat, but there's a formula behind their offer if, for example, you are looking to sell oil and gas lease.

The process can be rather tedious or quite easy, again, depending on where you are located, how big is your property, if all the required information is on hand and how "legally-free" your interest is. What that means is whether the property title is under your name or corporation, or it is an individual or common property. Obviously, being owned by many entities can complicate the negotiations. Sell Gas Rights

Nevertheless, the process to sell oil and gas lease can take days or weeks. More often than not, especially when dealing with mature companies, the onus is on the property owner to complete all the requirements to hasten the proceedings.

There's no need to go into the mathematical equation right now because it's very complicated. You do need the expert advice of a lawyer specializing in transactions to sell oil and gas lease or an accountant who can break down the numbers for you. Sell Oil Rights

The buyer's proposal varies according to certain parameters.

Reservoir - This refers to the underground sedimentary formation, which can either be limestones (shells that settled on the rock), sandstones (sands that are fused together), dolomites (limestone + magnesium) or shale (mud squeezed together) or a mixture of these porous rocks. Depending on its chemical composition, it can either hold oil or gas.

Production curve - Probably one of the more important factors to consider before you sell oil and gas lease. Petroleum engineers assess your property to determine the mixture of water in correlation to the amount of oil and gas. They can also project the decline curve in the reservoir. This ties with the future production and development of your property.

Taxes - The amount of levy in the purchase or lease transfer depend on what county your property is located in. This will impact how much the offer is since the company usually shoulder these costs. Selling Mineral Rights

The oil and gas company also considers commodity price risks, income flows, and the capacity of the operator to deliver.

So before you attempt to sell oil and gas lease, talk to a specialist who can help you examine the buyer's offer using all the parameters stated above. That way you protect yourself from holding the short end of the stick. Mineral Rights