Oil and gas royalties are payments received by oil and mineral rights owners from companies leasing mineral resources they have rights to through land ownership. Some investors have already purchased the royalties alone, without mineral rights, from oil and gas royalty sellers. Either way you own the royalties, they are a sellable commodity. Royalties are small, incremental payouts. Sell oil and gas royalties and receive one large sum of money rather than smaller sums spread over time. Use this payment however you wish.
A Sure Thing
Owning oil and gas royalties is generally going to be highly profitable. Often, these royalties are owned because the mineral rights are owned and a mining company has chosen to settle a lease on mineral mining rather than completely purchasing the full mineral rights. Sometimes this works out better for certain land owners who also own the mineral rights to the land. If you are in a position to own both mineral rights and associated royalties, you are not literally sitting on a gold mine. You are sitting on a mine with great value analogous to a gold mine. You should sell oil and gas royalties because it is a sure way to receive fast income.
Consider Selling the Mineral Rights
You own the mineral rights to your land. Mining companies have tapped into your oil and gas. You are receiving regular royalties due to a lease agreement. This seems like a favorable situation and it likely is. What happens when the lease runs out? What if, at that point, the mining company decides to withdraw? Sure, you still own the mineral rights. This is considerable potential. Many companies and private investors purchase mineral rights for this reason. The only problem is no income is being generated anymore and you don’t know when another lesser will come along.
The best way to sell oil and gas royalties is to sell the mineral rights while royalties are being generated or if there is high potential for royalties as a real possibility. In this way, you are assured a large lump sum immediately from a buyer rather than waiting for small sums to accumulate. This means you get the money immediately rather than attempting to hold on to a high-risk investment. There are companies designed to help you find buyers and assist with the paperwork and legalities which inevitably accumulate.
Selling Royalties Alone
Sell oil and gas royalties in order to consolidate the royalty payments you are receiving from a company or private investor leasing your mineral rights. You still keep the mineral rights with the hope of finding a new lessee or high-end offer from a buyer. Know and understand this scenario to be high-risk. There could still be great potential for your land investment to continue to pay out for years to come. For best results, find a company experienced with handling the intricacies of these matters. Get the best advice on what to sell and how to sell it.
