Endeavor Acquisitions, LLC has a prominent presence all throughout the United States. Endeavor Acquisitions is actively acquiring mineral and royalty interests in most oil and gas productive regions, including some of the most productive shale and/or basin regions in the country. But to understand where and why we have presences in certain locations, it’s important to have an understanding of what shale is and how it is used.
What is it?
Shale is in a category of rocks known as “mudstones,” but differs from many other mudstones because of the many layers that make it up, making it “laminated.” The sedimentary rock is fine-grained and is formed by compacting silt and clay over time. It is the most abundant sedimentary rock.
Why use it?
There are different kinds of shales, and each has different properties that are useful. Black shales, which are most useful for our purposes, can sometimes consist of organic material that can break down to form natural gas or oil. This makes areas of black shale some of the most important areas in terms of oil and natural gas deposits. They get their color from small particles of organic material that were imbedded in the mud that helped form the shale. The oil and natural gas that sometimes forms from this organic material would then rise upwards out of the shale because of the low density.
Now that you know more about our areas of interest, you may want to know more about mineral and royalty interests. Contact our mineral acquisitions team today to speak with a member of our staff to learn why selling your mineral and royalty interests to Endeavor is the right choice for you. Our team of experts handles mineral and royalty acquisitions throughout the United States.
In a previous post, we began helping you understand the advantages and disadvantages of different options you have when dealing with your mineral interests. Since we previously went through the process of selling oil and gas mineral rights, in this post we’re going to continue and briefly explain what it means to lease your mineral interests.
Leasing mineral interests is an arrangement that exists between oil companies that lease rights from owners in order to bring oil and gas reserves to the market. This involves the two parties agreeing to specific terms, privileges and obligations to adhere to during the exploration and production stages.
Leasing your mineral interests, similarly to renting a home-property out, allows you to retain ownership over your assets while making a regular profit off of it. While selling your rights will get you a large, up-front payment, you will still get a bonus payment when you lease. However, since you still own the interest, you also have the possibility to receive future lease bonuses and royalty payments that could, in the long run, be a larger sum than the payment received for selling outright.
The downside to this is that leasing is a much less definite process. There is no guarantee that oil or gas will be found in your minerals, and if there are, with time they value will only decrease as the asset will deplete.
Hopefully the information we’ve provided you will help you determine how to proceed with your mineral interests. If you’re interested in selling oil and gas mineral rights, trust EndeavorAcquisitions.com to help. We’ve assisted thousands of mineral owners with the acquisitions process and can help you with your personal and financial goals in the process.
Technically known as a mineral estate, ownership of mineral rights is a type of real property ownership. Mineral rights grant the possessor the ability to do what they want with the minerals contained in the property, including mining, exploiting, and/or producing them. This means, if you own a piece of property that contains in-demand resources, you can sell, lease, gift or bequest a portion of or all the interest as you see fit. Of course, every person’s situation is different, and when it comes to deciding between selling and leasing your mineral and royalty interests, there are definite advantages and disadvantages to both. Though it can get a little confusing to break down the differences and understand what will be the right course of action for you, personally, we’re here to help. Below, we’ve begun laying out the advantages and disadvantages of selling your rights in order to help ease the process for you.
One of the biggest advantages to selling your rights is that you can receive an immediate cash payment. The future is uncertain, so there is no guarantee what money you will make in the long run in terms of royalty payments when leasing. Selling is also an overall easy and more hassle-free process. Keeping track of mineral interests can be incredibly time consuming and there’s a lot of maintenance necessary if you still own the property. If you sell, you eliminate the need to maintain and have a guaranteed sum upfront which is safe from the not-so-certain future.
Now that you know a little bit more about selling your mineral and royalty interests, the next step is to learn more about your other options. Keep an eye out for an upcoming post in which we’ll outline the plusses and minuses of leasing instead of selling. If you already know your course of action, and you need help with the process, visit EndeavorAcquisitions.com, today. Our professionals have a reputation for excellence and can help you with your interested related needs.