425 Industrial Ave, Suite 206, Morgantown, WV 26505

Is It Wise To Sell Mineral Rights?

People often ask themselves “Should I sell my mineral rights?” The right to sell mineral rights is a luxury that U.S. citizens enjoy. In the USA and parts of Canada, individuals, citizens, can own mineral rights and royalty rights underlying land. As opposed to other countries, where the sovereign government or king, queen, shah, or sheik owns them. So, those of us in North America are fortunate that we can even entertain the thought of selling mineral rights. (By the way, some people only own royalty rights but selling royalty rights is an option for them, too.)

Many people wonder whether they should sell their minerals. And, as is often the case, many people don’t even know they own them until a landman knocks on their door with an offer because Grandpa bought mineral rights or reserved them decades ago. And they’ve long since been forgotten as the generations go by.

It depends on your needs and your aversion to risk. If you don’t need anything and you think that your minerals are worth far more to you than what they’d bring in a sale, you could take the position that you should just hold on. On the other hand, some people have cash needs that necessitate a sale of something. Or hitting the lottery. A lottery windfall is highly unlikely for any given person but, selling mineral rights can be the solution to cash needs for some. And, as stated, there is always that important word, risk, lurking in the background. The risk of not taking a cash offer is real. This is why we find that corporations owning mineral rights always will consider a cash offer. They always evaluate it. If the cash offer makes that particular property dollar up for what their return on investment goals are, they sell. The same process should be done by an individual.

Hold On To Mineral Rights?

Some people take the position that they will just hold on to all mineral rights they own. If they have no cash needs, that can be a valid decision. On the other hand, if enough cash can be enjoyed from a sale, we could argue that it would be foolish not to sell, in view of the tremendous risks involved in the oil and gas industry and the speculative nature of many offers. Point being, only the mineral owner can determine whether they should sell. In areas of oil and gas production, many times, offers are made and mineral owners elect to hold on, and months or years later, they are sorry that they did not sell, as the reason the offer was made did not pan out. And they will likely never again enjoy a cash opportunity for those mineral rights. So, it can be a tough decision.

Mineral Rights In Eagle Ford Shale, Haynesville Shale, Bakken Shale, Niobrara Shale, Granite Wash, Permian Basin

If you happen to own mineral rights in the area oil production or gas production has been found, those mineral rights and royalty rights have value. Especially if they are in the vicinity of the Eagle Ford Shale in south Texas, Haynesville Shale in Louisiana and east Texas, Bakken Shale in North Dakota and Montana, Niobrara Shale in Colorado or Wyoming, or, for instance, the Permian Basin of West Texas. Also, certain parts of the Marcellus Shale play in Pennsylvania or West Virginia. Actually, pretty much any mineral rights in the USA that are producing oil or gas or near oil/gas production. It doesn’t have to be in a shale play. For instance, there are many oil wells in states such as Nebraska, Kentucky, Illinois, Indiana, Alabama, Mississippi, etc. These mineral rights have a marketable value.

Buy Something You Need

Why would anyone want to sell minetal rights? Lots of reasons. Perhaps you have need for cash for a new car, a home, a special vacation, provide for the kid’s education, retirement, any number of things. Perhaps you’re just tired of struggling to make ends meet. A cash infusion can sure help. And, in some parts of the USA, the value of mineral rights can be significant. For some people, it’s a simple decision — if a sale of mineral rights can provide much needed cash that would be otherwise unavailable, it’s a no brainer. And, sometimes the buyer will allow you to sell less than your full interest.

Reduce Your Risk of selling mineral rights and royalty rights (The Oil & Gas Industry Is Certainly Risky)

Another reason many sell mineral rights and royalty rights is to reduce risk. A sale means cash money and cash is king. The oil and gas business is one of the world’s most volatile industries, fraught with risks, much uncertainty and subject to political changes in policy. If mineral rights have a certain value today, there is no guarantee that they will have the same value tomorrow. Things change rapidly in the oil and gas biz! There are many variables. For one… ever heard of a dry hole? That’s how your mineral rights can become close to worthless overnight. If any oil and gas company drills near your land and the well does not strike oil or gas in commercial quantities, it could make your mineral value plummet. So, taking a nice cash payment can make sense.

Tired Of Dealing With Mineral Rights?

Some choose to sell mineral rights or producing royalty rights because they are just tired of dealing with it. Often, it’s a hassle of keeping up with the paperwork or a hassle of monitoring the oil or gas company drilling the wells. Managing mineral interests can be quite burdensome, best left to professionals. Believe it, companies make accounting mistakes and producing properties require monitoring and audits.

Also, sometimes family squabbles can cause some to want to sell mineral rights and just get out of an uncomfortable situation. This is not unusual.

Why Anyone Buys Mineral Rights

So, why would any company buy mineral rights? They buy because they are in the business of risk. They are able to tackle risk by spreading that risk over thousands of acres, even across several states. Thus, if any particular purchase they make becomes worthless, perhaps another purchase will turn out for the good, making up for the first loss. Individual mineral owners cannot enjoy such decreased risk if their property is in one locale. In the long run, over many decades, if a mineral buyer is good at it, they can make a profit. If they are bad, meaning they buy too many bad deals that don’t work out, or they pay too much, they will not make money. Assembling a large mineral rights portfolio is only for the wealthy, as it takes an enormous sum of money to fund and run such an operation.

Lump Sum Settlement

Whenever you sell mineral rights and royalty rights, it means a cash settlement for those rights. If you have a producing property and are enjoying an oil check or gas check, it is somewhat equivalent to how people react when they win a lottery. Instead of accepting the future revenue stream, they elect to take the cash settlement. Nothing is as certain as a cash settlement, plus, you get to enjoy the money now, not as a series of checks that come in the future. Of course, the difference is that an oil property or gas property is a depleting asset, meaning that the oil production or gas production is declining every month. It’s pure physics, the oil or gas in the ground is part of a reservoir, a pool of oil or gas, somewhat like an underground balloon. An oil or gas well taps into that balloon like a giant straw and “pricks” the balloon. Just as the balloon deflates, the oil and gas reservoir deflates, over many years. So, an oil check or gas checks, with constant prices, continues to go down over time.

Those who are not enjoying an oil check or gas check coming in might still be able to sell mineral rights. If so, the buyer is simply gambling that oil or gas production will occur sometime in the future. Sometimes, they win, sometimes, they lose. Over a period of time, assembling a portfolio of thousands of acres to spread risk, they can achieve a profit if they are lucky enough to have more winners than losers.

Good Areas For Mineral Rights Sales

If you own mineral rights in certain areas of the USA, you might enjoy a nice cash payday if you choose to sell. Such as…
Producing properties (you are enjoying oil or gas checks… royalty checks… royalties from oil wells or gas wells).
Areas with oil and gas production in the general or nearby area
Shale play areas such as:
Haynesville shale play (Louisiana, Texas) (DeSoto and Red River parish, LA; Nacogdoches and San Augustine County, TX)
Eagle Ford shale play (not a true shale) (Texas) (Gonzales, Dewitt, Karnes, McMullen, Live Oak, La Salle County, TX)
Marcellus shale play (Pennsylvania, Ohio, West Virginia, Maryland)
Bakken shale play (North Dakota, Montana)
Niobrara shale play (Colorado, Wyoming, Nebraska)
Monterey shale play of California (including Kern County, CA)
Utica shale play (Ohio, Pennsylvania, West Virginia)
Devonian shale play (Ohio, Pennsylvania, West Virginia)
Tuscaloosa Marine shale TMS play (and see this site) (Louisiana, Mississippi) (Amite County, MS; Wilkinson County, MS)
Cana shale play (Oklahoma)
Woodford shale play (Oklahoma)
Barnett shale play (Texas) (Johnson County, TX; Montague County, TX; Tarrant County, TX;
Fayetteville shale play (Arkansas)
Antrim shale play (Michigan)
Avalon shale play (New Mexico, Texas)
Pearsall shale play (Texas)
Granite Wash (not really a shale but close) (Oklahoma, Texas)
Mississippi Lime play (Or “Mississippian,” not really a shale, but a carbonate) (Oklahoma, Kansas)
Austin Chalk play (not a shale) (Texas, Louisiana)
Cline shale play (Texas)
Leonard shale play (Texas)
Collingwood shale play (Michigan)
Spraberry play (Texas)
Wolfcamp play (Texas)
Wolfberry play (Texas)
Cotton Valley play (Texas, Louisiana)
Wilcox play (Louisiana, Texas)
Eaglebine play (Texas)
Woodbine play (Texas)
Brown Dense play (Arkansas, Louisiana)
Smackover play (Arkansas, Louisiana, Texas, Mississippi, Alabama)
Bone Springs play (Texas)
Delaware play (Texas, New Mexico)
Established producing basins such as the Permian basin, Anadarko basin or Williston basin or in producing states such as Texas, Louisiana, Mississippi, Arkansas, Oklahoma, Kansas, North Dakota, Montana, Colorado, Wyoming, Nebraska, Pennsylvania, Ohio, Kentucky, California, Arizona, New Mexico, Utah, South Dakota, Indiana, Illinois, Tennessee, Kentucky, West Virginia, Michigan, New York, Idaho, Alabama, Florida, Virginia, Nevada, and California.

The following list shows Texas Permian Basin counties where you may sell mineral rights to us.

ANDREWS COUNTY, HOCKLEY COUNTY, NOLAN COUNTY, BORDEN COUNTY, HOWARD COUNTY, PECOS COUNTY, COCHRAN COUNTY, IRION COUNTY, REAGAN COUNTY, COKE COUNTY, JEFF DAVIS COUNTY, REEVES COUNTY, CRANE COUNTY, KENT COUNTY, SCURRY COUNTY, CROSBY COUNTY, KIMBLE COUNTY, STERLING COUNTY, DAWSON COUNTY, LAMB COUNTY, TERRY COUNTY, DICKENS COUNTY, LOVING COUNTY, TOM GREEN COUNTY, ECTOR COUNTY, LUBBOCK COUNTY, UPTON COUNTY, GAINES COUNTY, LYNN COUNTY, WARD COUNTY, GARZA COUNTY, MARTIN COUNTY, WINKLER COUNTY, GLASSCOCK COUNTY, MIDLAND COUNTY, YOAKUM COUNTY, HALE COUNTY, MITCHELL COUNTY.

We speculate across a broad area to spread risk, which is inherent to oil and gas exploration. We regularly add to our large, diversified portfolio buying both small and large purchases, even seven figure purchases and are mineral rights buyers in various oil and gas plays. Lately, we have expanded to focus in many areas, including the Monterey shale of California (Kern County and the area around Bakersfield, California has a lot of oil and gas production), the Niobrara shale in Colorado, Nebraska and Wyoming, the Cline shale in Texas, the Leonard shale or Avalon shale of New Mexico and Texas, the Barnett shale of Texas, the Eagle Ford shale of Texas, the Tuscaloosa Marine Shale of Louisiana and Mississippi, the Haynesville shale and Bossier shale of Louisiana and Texas, the Wolfcamp and Eaglebine of Texas, the Granite Wash in Oklahoma and Texas, the Woodford shale of Oklahoma, the Fayetteville shale of Arkansas, the Mississippian (Mississippi Lime) of Oklahoma and Kansas, the Marcellus shale, Utica shale and Devonian shale of Pennsylvania, Ohio and West Virginia, the Antrim shale of Michigan, the Mancos shale of Colorado and New Mexico, the Wilcox of Texas and Louisiana, the Cotton Valley trend of Texas and Louisiana, much of the Permian basin and Anadarko Basin, the Uintah basin of Utah, including Pinedale field, the Piceance basin and Denver-Julesberg basin (DJ Basin) of Colorado (Weld County, CO, Washington County, CO, etc.) and last but not least, the Bakken shale of North Dakota, South Dakota and Montana. We are expanding all the time; for instance, now you can sell mineral rights in Reeves County, Texas (plus Andrews County, Texas and other Permian basin counties) to us.

To diversify and spread risk into the Appalachian basin, we would like pick up more acreage in the Marcellus/Utica shale region. Lately, we are looking at the following Ohio counties: Belmont County, OH; Monroe County, OH; Jefferson County, OH. We would like to buy minerals in these West Virginia counties: Brooke County, WV; Hancock County, WV, Ohio County, WV; Marshall County, WV; Wetzel County, WV. And if you are interested in selling mineral rights in these Pennsylvania counties, call: Beaver Couny, PA; Washington County, PA; Butler County, PA; Allegheny County, PA; Greene County, PA; Susquehanna County, PA; Wyoming County, PA; Sullivan County, PA.

There are many more areas we are interested in, such as oil and gas fields of Illinois, Indiana, Kentucky, Tennessee, Nebraska, Utah, Alabama, Florida and even Nevada and Arizona. We are also wishing to add acreage in Kern County, California (CA) and in areas around Los Angeles, CA.

Can you sell mineral rights in Wyoming? Yes, we will buy mineral rights and buy royalties in any area where you own oil royalties or gas royalties or where you have an oil and gas lease in effect. Sometimes, we will buy unleased mineral rights. Sublette County, Cambell County and Converse County are all new areas of focus for us to buy mineral rights and royalty rights. The full list includes the following Wyoming counties: Sublette County WY, Johnson County WY, Sweetwater County WY, Campbell County WY, Park County WY, Converse County WY, Laramie County WY, Goshen County WY, Albany County, Big Horn County WY, Carbon County, Crook County, Fremont County, Hot Springs County, Lincoln County, Natrona County, Niobrara County, Sheridan County, Uinta County, Washakie County, Weston County WY. The Wyoming oil company operators with oil wells and gas wells include: Anadarko, Ballard Petroleum, BP America, Burlington Resources, Chesapeake, Devon, Encana, EOG Resources, Exxon-Mobil, Marathon, Merit Energy, QEP, Samson, SWEPI, Ultra, WPX-Energy, Yates Petroleum. Other counties may be a fit for us as well, just contact us if you are interested in selling mineral rights in Wyoming.

The bottom line is that for your mineral rights and royalty rights to have decent value, they must be in production (your oil and gas lease is “held by production” and you are receiving oil checks or gas checks) OR lie in an area where other oil wells or gas wells have been drilled and found to be productive. Those who enjoy royalty checks, producing oil royalties or gas royalties can sell those mineral rights because they include the royalty rights to oil and gas production. Those who haven’t, but there is an indication that oil wells and/or gas wells are producing properties in the area, might enjoy the same, a cash settlement.

NOTE: There are some new plays in the USA. The Tuscaloosa Marine shale play (TMS) in Louisiana and Mississippi (as well as a few others mentioned above) is a new, somewhat unproven play. It is close to being the stratigraphic equivalent of the Eagle Ford shale play in South Texas. As for now, we don’t know if the Tuscaloosa Marine shale play will turn out to be productive enough over a large area to be an overalls commercial success. However, if you own TMS mineral rights and wish to sell, call the number below to discuss. As time goes on, the Tuscaloosa Marine shale could mean a nice payday of bird-in-the-hand cash. Wells have been drilled in the past but they have not turned out to be commercial. However, to the south of the Tuscaloosa shale play, at a much deeper depth, certain Tuscaloosa sands (sandstone reservoirs) have had good gas production. And one of the factors affecting the Tuscaloosa Marine shale (TMS) is depth; it lies 10,000 to 15,000 subsurface, so, wells are very costly. But recent drilling results are giving encouragement to the oil company drillers. Everyone has fingers crossed but we are willing to buy some mineral interests at this time. We will consider purchases in the following Mississippi counties: Amite County, MS; Wilkinson County, MS; Pike County, MS. Also, these Louisiana parishes: West Feliciana Parish, LA; East Feliciana Parish, LA; St. Helena (Saint Helena) Parish, LA; Tangipahoa Parish, LA; Washington Parish, LA.

The Eagle Ford shale play of south Texas is providing some good production and is working over a broad expanse. The initial production is good in some areas but it’s a wait and see regarding long-term economics overall due to some areas being good and some areas not very good. As in most shale plays, results vary from tract to tract. And it’s very early in the game, indeed, for the Tuscaloosa shale. (The Tuscaloosa Marine shale and Tuscaloosa shale are the same rock formation, named for Tuscaloosa, Alabama, where the formation outcrops at the surface. Many people have shortened it to TMS.)

If you are wanting someone to buy mineral rights in the Tuscaloosa shale play, we wish you luck!

Sell Arkansas Mineral Rights / Sell Texas Mineral Rights / Sell North Louisiana Mineral Rights

We also buy mineral rights in Arkansas, Louisiana and Texas for other zones, such as the Smackover and Brown Dense play, the Cotton Valley play, Hosston Play (Travis Peak) and the Pettet (Pettit) zone, which is part of the Sligo formation. The Pettet play produces oil and natural gas along the state lines of Arkansas-Louisiana on into East Texas. If you wish to sell mineral rights in Union County, Columbia County, Miller County or Lafayette County, Arkansas, we are interested in looking at your mineral rights. As well as royalties in Caddo Parish, Bossier Parish, Webster Parish, Claiborne Parish, Louisiana. And this trend extends into East Texas — Cass County, Marion County, Harrison County, Gregg County, Panola County, Rusk County, Shelby County, Smith County, Nacogdoches County, Cherokee County and Anderson County, so, give us a call. And it doesn’t have to be Pettet, Hosston, Cotton Valley or Smackover – Brown Dense, we will consider mineral rights providing royalties for any zone. As well as non-producing tracts in some areas.