Nationwide Royalties » Oil and Gas Royalty http://www.nationwideroyalties.com Sat, 31 Jul 2010 06:38:15 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 How to Sell an Oil and Gas Royalty, Lease, Overriding Royalty or Mineral Rights http://www.nationwideroyalties.com/how-to-sell-an-oil-and-gas-royalty http://www.nationwideroyalties.com/how-to-sell-an-oil-and-gas-royalty#comments Sat, 01 Aug 2009 16:10:18 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=428 How to Sell an Oil and Gas Royalty, Lease, Overriding Royalty or Mineral RightsThere are a number of ways that one could sell their oil and gas royalty, lease, overriding royalty interest or mineral rights.  This article will look at a few of the more popular methods.

Private Buyer

You can sell your oil and gas royalty to a private buyer. You may have family or friends that actively invest in oil and gas royalties.  If so, they may be interested in purchasing.  Alternatively, you could sell your oil and gas lease to us (Nationwide Royalties).  We buy producing and non-producing oil and gas royalties, leases and overriding royalty interests from individual royalty owners, estates, trusts, institutions and oil and gas companies throughout the entire United States.  One of the major advantages to selling an oil and gas royalty to a private buyer is that there are no fees to the seller and they can usually sell quickly and discreetly.  In addition, we offer royalty owners a no risk way to value their property simply by submitting a bid request through our website.  After we receive your request, we will make you a lump sum cash offer to buy your royalty which you can accept or reject.  To learn more about us, please click here.

Auction

You can sell your oil and gas royalty at auction. Traditionally, larger oil and gas royalties have been sold at auction.  This form of divestiture has upsides and downsides and can be compared to selling a house using a real estate agent. For example, the auctioneer will advertise and market your royalty to potential buyers and then typically take a percentage of the proceeds generated from the sale of your royalty. If you decide to go the auction route, you can hold a live in person auction or contract with a company like EnergyNet that will hold an online auction.  Again, there are pluses and minuses to both forms of auction.  One of the more prominent downsides is that it takes time to auction an oil and gas royalty and if you are in need of quick cash for some reason, this may not be your best choice.  Also, by holding an in person or online auction of your oil and gas royalty, you and your asset(s) become public and you may loose any form of privacy in the transaction.

In Person Oil and Gas Auction

In person auctions are limited to a specific geographic area and you may receive less or more then what you wanted for your property (unless you set a minimum bid).  However, an in person auction may draw local royalty owners / investors that have a unique knowledge of your property, which could lead to a more profitable sale of the asset.  One of the leading in person royalty auctioneers is The Oil & Gas Asset Clearinghouse. You can learn more about their services by visiting their website: http://www.ogclearinghouse.com

Online Oil and Gas Auction

Online auctions are not limited to a specific geographic area but you may run into the same sort of problem of receiving less or more then what you wanted for your property (unless you set a minimum bid).  Online oil and gas royalty auctions are modeled similar to the likes of eBay.com.  You as the royalty owner contract with the online auctioneer to advertise and market your property to potential buyers.  They will then list your property for sale on their website where registered users can place bids to buy your property 24 hours a day until the auction is over.  One of the major upsides to going to online route would be that the auction can be spread out over a number of days, weeks or months allowing you to gain more exposure on the property.  Additionally, online auctions can draw royalty investors from all over the world that may have not been able to or did not want to attend an in person auction.  One of the leading online royalty auctioneers is EnergyNet. You can learn more about their services by visiting their website: http://www.energynet.com

]]> http://www.nationwideroyalties.com/how-to-sell-an-oil-and-gas-royalty/feed 0 What is an Overriding Royalty Interest? http://www.nationwideroyalties.com/overriding-royalty-interest http://www.nationwideroyalties.com/overriding-royalty-interest#comments Sat, 01 Aug 2009 15:15:57 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=425 An overriding royalty interest is a type of oil and gas royalty that is created from a working interest.  An owner of an overriding royalty interest is entitled to a percentage share of the revenue generated from the gross production and free from covering any associated operating or production costs.  Owning an overriding royalty interest does not however eliminate the owners responsibility to pay their portion of state and federal taxes related to the property.

]]> http://www.nationwideroyalties.com/overriding-royalty-interest/feed 0 What is a Royalty Acre? http://www.nationwideroyalties.com/royalty-acre http://www.nationwideroyalties.com/royalty-acre#comments Sat, 01 Aug 2009 15:07:00 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=423 A royalty acre within the oil and gas industry refers to the mineral owner’s royalty on one acre of leased land.

]]> http://www.nationwideroyalties.com/royalty-acre/feed 0 What is an Oil and Gas Royalty? http://www.nationwideroyalties.com/oil-and-gas-royalty http://www.nationwideroyalties.com/oil-and-gas-royalty#comments Sat, 01 Aug 2009 14:59:57 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=421 An oil and gas royalty is essentially a right to oil and gas or other minerals.  It gives the royalty owner the right to a specific share of oil and gas produced from a property without the responsibility of sharing in the costs of the development of the property.

The oil and gas royalty owner does pay production or operating expenses, however they are responsible for paying the Federal income tax related to their portion of the royalty.  This tax is also known as a severance tax.  In addition and depending on the terms of the lease, some oil and gas royalty owners also pay what is known as a handling cost.  The handling cost is directly related to the royalty owners percentage interest and covers the expenses related to getting the oil or gas from the wellhead to a pipeline or refinery.

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