Oil and gas production in the Barnett Shale has continuously been one of the top contributors to the North Texas economy, a study commissioned by the Fort Worth Chamber of Commerce revealed on Wednesday, September 10.
The study found out that each year, oil and gas drilling in the Barnett Shale generates $11.8 billion in revenue and $480.6 million in taxes for the North Texas economy. Even with a decline in the number of new wells drilled and a decrease in natural gas prices, the revenue generated from drilling and drilling-related activities has continued to rise due to more productive oil and gas wells, investments in infrastructures, and growing employment.
The oil and gas boom in Texas has been incredibly beneficial to land owners who have the option to sell their mineral rights. The Mineral Auction works with thousands of companies in order to provide you the best deal possible. If you’re planning to sell your mineral rights, consult with us first by calling (512) 698-2802 today.
Owning mineral rights means you have the option to make money by selling the minerals found in your property. This means greater economic flexibility, especially during life-altering events and unexpected financial situations.
When you decide to sell, it is essential to know the components of ownership you are relinquishing. Under the Texas Law, selling the ownership of your mineral rights means selling your right to:
- Use the mineral estate and the surface estate necessary to acquire the minerals
- Lease your mineral properties
- Receive bonuses from that lease
- Receive delay rentals, royalties, and other benefits due under a leasing agreement
When planning to sell your mineral rights, seek the help of experienced mineral rights brokers who have a wide network of competitive buyers to help you get the best value. To learn more about what we do and how we can be of help, call The Mineral Auction at (512) 698-2802 today.
When trying to sell your mineral rights, it is important to determine whether the wells on your property are technically classified as oil or gas wells. People may use these terms for their wells interchangeably because they often produce both. However, failure to correctly differentiate between the two may cause profound economic consequences, from well spacing issues, pipeline company prioritization, to the possibility of severing ownership in some areas of Texas.
Because wells often contain a mixture of oil and gas, provisions of the Texas Natural Resources Code clearly makes a distinction based on the ratio of each element. The Code defines an oil well as a well “that produces one barrel or more of oil to each 100,000 cubic feet of gas.” On the other hand, a well that produces pure natural gas with no oil, or produces more than 100,000 cubic feet of gas per one barrel of oil is considered a gas well.
To learn more about the legalities of mineral rights, consult with our team in Austin at The Mineral Auction by calling (512) 698-2802 today.
The revenue generated from mineral ownership over materials such as coal, minerals, oil, and natural gas are generally split between the owner of the mineral rights and the company that extracts the resources from the ground. However, there can also be other stakeholders between which the income would be divided. They are:
- Royalty interest owner – Receives a portion of income from the mineral rights, but does not own any mineral properties. Landmen, geologists, and brokers who were able to reserve an interest in the mineral properties, but are not the owners of the mineral properties, are considered royalty interest owners
- Working interest owner – Refers to the entities that bear production costs in the extraction of minerals. The company itself, or the contractor drilling the mineral resources, are considered working interest owners
Understanding the details behind mineral rights ownership and sale can be very challenging without the help of qualified and experienced mineral rights brokers who truly understand the needs of mineral rights sellers. To learn more about your mineral rights and how to sell them in Austin, consult with our team at The Mineral Auction by calling (512) 698-2802 today.
Oil and natural gas wells are among the many natural resources that are considered depleting assets. Depleting assets generally refer to resources that are expected to decline over time. A very productive gas well today may eventually become barren and stop producing over an unspecified period of time. When this happens, mineral properties will become essentially unprofitable.
The lack of surety regarding when a mineral property would start to dwindle in resources and eventually become unproductive is the primary reason why several mineral rights owners choose to sell, rather than lease, their mineral properties. Selling their mineral rights provides them the assurance of getting the most out of their property, without the risk of depletion that might dramatically decrease the value of their mineral rights.
We at The Mineral Auction are aware of the many advantages of selling mineral rights, and are ready to help mineral rights owners enjoy the most out of these depleting interests by selling. To know more about how we can be of help, call us at (512) 698-2802 today.
The current oil and gas boom in Texas drove employment way up. The state’s job growth in these industries experienced a 10.7 increase from May 2013 to May 2014. General industrial employment grew for the third year in a row, increasing the employed to 1.2 million, the San Antonio Business Journal reported.
However, workers and manufacturers are not the only stakeholders benefiting from this flourishing industry. Mineral rights owners in Texas are also taking advantage of the growth. By getting in touch with the right oil and gas mineral rights buyer, a seller would be able to capitalize on his assets at a time when the value of mineral properties is high.
Selling your mineral rights at the height of the State’s growing energy industry would help you get the most out of your deal. Consult with our team at The Mineral Auction if you plan to sell your mineral rights for the highest value possible. Call us at (512) 698-2802 today to discuss your options.
An online report by Energy Global on Monday, June 23, revealed a multi-billion dollar acquisition has been concluded by Encana Oil & Gas (USA) Inc., a wholly owned subsidiary of North American energy producer Encana.
Encana Oil & Gas (USA) Inc. recently sealed a $3.1 billion buyout of 45,000 net acres of the Eagle Ford Shale from mineral producer Freeport-McMoRan. The property, which is situated in the southern counties of Wilson, Karnes, and Atascosa in Texas, produced approximately 53,000 barrels of oil equivalent per day (boe/d) during the first quarter of this year.
Encana CEO Doug Suttles stated that with the property’s current production and drilling inventory, the company is positive in generating bigger cash flows and creating a wider portfolio of oil resources.
When it comes to shale gas exploration and production, Texas is indeed the ideal place to be. If you want to make the most out of this flourishing industry by selling your mineral rights, our team at The Mineral Auction is willing to guide you in finding the best value for your property. Call us at (512) 698-2802 to learn more about how we can help you.
A lawyer and Texas A&M assistant professor shared her knowledge about how to protect one’s surface property during mineral rights negotiations at the Grayson County courthouse on June 12, Fox Texoma reported.
In light of a burgeoning oil and gas industry in the state, the lawyer, assistant professor and extension specialist at Texas A&M Tiffany Dowell offered residents valuable tips to protect the surface estate during oil and gas leases. She advised landowners to ensure the inclusion of detailed rules on a lease to specify how the surface land should be used. If not, oil and gas companies can take advantage of the contract and not respect the land.
She further stated that consulting with an attorney before coming to an agreement with the oil company is a good way to protect landowners’ interests.
Whether you are trying to sell or lease your mineral rights, our team at The Mineral Auction is here to help you make an informed decision. To seek assistance, call us at (512) 698-2802 today.
Oil and gas service provider Paradigm Oil and Gas Inc. announced its acquisition of 50 new oil wells in Texas, thereby expanding their reach into oil and gas production, SYS-CON Media reported on June 2.
In a press statement, the company said more than 20 of the 50 newly acquired oil wells are already producing oil and yielding income. The purchases cover about 4,000 acres of land in the Houston and Dallas areas, obtained by acquiring the leases previously held by Bitter Creek Petroleum, Blackjack Services, and Magnum Oilfield Services.
Paradigm Oil and Gas CEO Vince Vellardita said that with its increased production capability, the company expects to earn a six-digit monthly revenue by the last quarter of this year.
Our highly resourceful and knowledgeable brokers at The Mineral Auction help mineral rights sellers in Texas take advantage of the state’s current energy boom and may also help you. Call us at (512) 698-2802 to learn more about how we may assist you in finding the right buyer.
In 2011, the U.S. Energy Information Administration (EIA) stated that the country produced 23 trillion cubic feet of natural gas, which accounts for 95% of the nation’s overall natural gas consumption. In 2040, the EIA hopes that the U.S. produces 33.1 million cu. ft. of natural gas, a 44% increase in the country’s overall natural gas production.
The projected increase in the country’s natural gas production is primarily caused by booming shale gas production. Shale is a type of sedimentary rock rich in natural gas and petroleum. Furthermore, this rock formation is very common in many parts of the country, including Texas.
At The Mineral Auction, we assist Texas residents in making the most out of this thriving natural gas industry by helping them sell their mineral rights to prospective buyers for the best possible value. You may reach us anytime by calling (512) 698-2802 if you want to learn more about our services.