Those who lease mineral rights threatened by fluctuating prices

Posted on Monday, April 13th, 2015 at 3:37 pm    

Some mineral rights owners are tempted to lease their mineral rights due to the promise of long-term returns. However, the fast-changing landscape of the oil and natural gas sector may cause the value of your mineral rights to dwindle. Something that may risk the profitability of your mineral rights could be the fluctuating price.

The value of mineral rights is subjected to the fluctuating prices of oil and gas on the market. Oil prices may vary depending on several factors, such as local and global changes in the supply and demand, market sentiment, and even politics and public policies. Although the fall in oil prices primarily benefits consumers, it may have a negative effect on oil explorers and drillers who spent a lot of resources and are in considerable debt for contributing to the oil and gas boom. Oil companies in debt are in turn reluctant to expand their oil and natural gas portfolio, which greatly affects those who own mineral rights.

Those who sell their mineral rights upfront to interested oil explorers have a decreased chance of being affected by the price changes and are therefore more likely to benefit than those who chose to lease their mineral rights.

By selling your mineral rights, you are sure to secure the best of what your property can offer today. Our brokers at The Mineral Auction can help you sell your mineral rights at the highest possible value. Call us at (512) 698-2802 to get help today.

South Texas counties want to benefit from mineral rights

Posted on Tuesday, January 13th, 2015 at 5:34 pm    

Counties in the oil-rich Eagle Ford Shale in South Texas wish to lease rights of way and mineral rights underneath county roads to repair those roads damaged by heavy-duty carriers of oil field equipment, The Texas Tribune reported.

However, a 1960 ruling by an attorney general regarding the state’s sovereignty over roads prevents counties from negotiating for and receiving revenue from leases. DeWitt County Judge Daryl Fowler and representatives from other counties plan to seek legislation that would allow counties to negotiate or at least receive some revenue from mineral rights leases and royalties. Fowler said it is right for counties to receive a part of the revenue from mineral rights beneath roads, as they are the ones who typically maintain and repair roads.

The 54-year-old opinion indicates that leases and royalties from mineral rights found beneath roads should go to the state general fund.

The revenue from mineral rights can also be economically favorable to the individual families who own them. If you want to reap the full benefits of the mineral rights you own in Texas, consider selling them with the help of our team of mineral rights brokers at The Mineral Auction. Call us today at (512) 698-2802.

Encana buys thousands of acres of Eagle Ford Shale estate in a multi-billion dollar deal

Posted on Monday, June 30th, 2014 at 9:06 pm    

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.

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