Anadarko Petroleum Corporation is partnering with New York-based private equity firm KKR & Co. in a bid to develop its acreage across East Texas, Bloomberg reported on October 29.
An investment of $442 million has been provided by the KKR & Co. to fund the drilling of more than 500 oil and gas wells in the Eaglebine field, an oil- and gas-rich region northeast of Houston. A University of Houston lecturer on energy economics said the joint venture will help Anadarko expedite oil and gas drilling activities and secure its leased lands without having to lose much of its own funds.
An ever-increasing volume of investment in oil and gas sector means a robust public and business confidence in the industry. If you are planning to take part in the oil and gas boom in Texas by selling your mineral rights, consult with a broker at The Mineral Auction by calling (512) 698-2802 today.
Because Texas law provides different statutory definitions of minerals, no single conveyance of “other minerals” is considered generally applicable.
Texas courts define minerals on a substance by substance approach. For instance, limestone, sand and gravel are sometimes considered minerals if they are rare and exceptional, and possess characteristics that would provide them special value. Sand useful for manufacturing cement or glass, for example, is considered a mineral while sand used for road-making purposes is not.
In some instances, substances found on or near the surface are considered a part of surface estate as a matter of law. For example, substances found in strip mining, a type of surface mining, would not be considered minerals during specific circumstances.
Selling your mineral rights requires the knowledge of a mineral rights broker who knows well the intricacies surrounding mineral rights law. To learn more about selling your mineral rights, speak with a mineral rights broker at The Mineral Auction by calling (512) 698-2802 today.
Encana Corp. is making its way into the oil and natural gas-rich Permian region of Texas after it announced its plan to buy Athlon Energy, an online Calgary Herald report stated on September 29.
Encana plans to buy the Texas-based energy firm for a little less than $6 billion and to assume its debt worth more than $1 billion. With this deal, the company envisions producing 250,000 barrels of oil per production day by 2017, which is five times what it produced last year. The company also believes the acquired land provides the company with around 5,000 possible new drilling spots.
Selling your mineral rights to healthy and well-footed companies in the oil production sector is a guaranteed way to ensure that you get the best value out of your property. The professionals at The Mineral Auction can provide you a wide portfolio of businesses who can buy your rights when you call our office at (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.
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 U.S. Court of Appeals has upheld a previous court decision that requires Chesapeake Energy to pay millions of dollars to three leaseholders, an online report stated on May 1.
According to the report, a three-judge panel of U.S. Court of Appeals in New Orleans decided to reject Chesapeake Energy’s appeal against having to pay $121 million to Texas-based Preston Exploration and two affiliates. In 2008, Chesapeake agreed to acquire 500 oil and gas leases from the three leaseholders, but later withdrew the arrangement when gas prices dropped drastically just before the agreement was about to conclude.
Chesapeake Energy initially won the case, but an appeal won by Preston led to a judgment that the energy company broke the deal with the leaseholders.
Our highly experienced team of brokers at The Mineral Auction helps sellers find the best possible price on their mineral rights. Contact us at (512) 698-2802 to learn about how we can help put your mineral rights up for auction in front of our network of thousands of reputable buyers.
By the end of 2014, Texas could outrank all OPEC member countries, other than Saudi Arabia, in terms of oil production, the Houston Chronicle reported Wednesday, April 23.
Greg Leveille from ConocoPhillips said that by the end of this year, Texas could produce 3.4 million barrels of oil each day, out performing every OPEC member-country except Saudi Arabia. The state’s oil output is also expected to top that of several leading oil-producing non-OPEC countries, except Russia, the United States, China, and Canada, which could make Texas the sixth largest oil producer globally.
The future of energy-rich Texas in the global energy market is indeed bright, and we at The Mineral Auction invite you to take part in this boom. If you are planning to sell your mineral rights, contact us at (512) 698-2802 to sell your rights at the best possible price.
