Frozen Links

Sell Your Mineral Rights Now

Posted by on Aug 24, 2015 in Geological | 0 comments

One of the greatest opportunities of residents in areas where shale gas abounds is the chance of earning huge amounts of cash, either instantly, if they sell mineral rights, or over a period of years, by leasing their mineral rights to giant oil-producing firms.

Shale gas, which is trapped inside soft, layered sedimentary rocks that have formed from merged mud or clay, is the main source of natural gas (which is used in American homes and commercial buildings) and petroleum.

The production of shale gas, according to the US Energy Information Administration (EIA), has increased over the past years, allowing the US to become an oil-producing country from an oil-dependent one.

Aside from the companies engaged in the extraction of oil from productive shale gas areas, the residents are the other group who will tremendously benefit from this shale boom, that is, if they are able to decide correctly on what to do with their mineral rights and/or property – lease or sell.

There are companies that are willing and are ready to pay millions of dollars in cash to property and mineral rights owners. Selling means cash up front – whether your property produces something or nothing at all. If your property proves to be really productive, you may regret having sold it or wished that you had sold it at a much higher price. How productive an area of land really is may never be known, though, unless the firm starts digging and actually strikes oil.

However, if your land proves to be unproductive and, therefore, definitely far less the amount that you have been paid, wouldn’t you be glad that you had sold it, and say that you have made the right decision – millions of dollars in your bank account despite a non-productive land. This is the very risk taken by firms as well: purchasing mineral rights the productivity of which is uncertain.

Owners, however, should refrain from deciding to sell (their) mineral rights abruptly, lest they end up getting paid a certain amount of cash when they could have gotten a much bigger amount. The Mineral Auction, like other firms which aim to help owners get the best deal for their rights, advises mineral rights owners to never have second thoughts about selling their rights. It is true, the Mineral Auction continues, that there are individuals who have been rewarded greatly in their decision to just lease their rights, making more money in the long term. This case is not the same for everyone, though, as many others never received the economic payout that they hoped for.

Another very important advice that the Mineral Auction imparts to mineral rights owners is to make sure that they are guided in every selling transaction by a mineral rights broker, who will help them receive only the best offer for their rights.

Leave a Comment

Your email address will not be published. Required fields are marked *