Marginal or Non-Economic Wells
If you are the owner of mineral, gas, or oil rights, you may want to wait to sell these rights until your land is developed. However, if you do this, you risk receiving little or no money because you may have a non-economic well on your land. The productivity of a well can change over time, and if you wait too long, productivity can mean little financial gain for you.
The Texas mineral rights dealers at The Mineral Auction understand why and how waiting too long to sell your mineral rights can have a negative financial impact on you. Our experienced brokers know the market, and we will make sure you sell your rights at the time that best serves your financial interests. Waiting too long may render the minerals you own less valuable as time elapses. Contact us today at (512) 698-2802, and we will ensure that you do not wait so long that your wells are marginal or non-economic and therefore not profitable for you.
Should I Hire a Mineral Rights Broker?
Knowing when to sell has serious implications for your financial gain. If you sell too late, your wells may become marginal or non-economic, and you will get little to no money for your resources. You need a mineral broker with a deep understanding of the mineral, gas, and oil markets so that you can make an informed decision on when to sell and maximize your profit.
Additionally, as a mineral owner, you may often be more focused on the development on the surface of your land than your mineral rights. What you fail to realize is that below the surface of your land may be a very profitable well. Many mineral owners still insist on completing surface development before they sell their mineral rights. The problem with this is that if you wait too long, the minerals that were once extremely profitable can turn marginal or non-economic because the market changes so rapidly.
Because the markets are so volatile, the sale of mineral rights is a decision that requires years of experience dealing with the markets. During surface development, you need to be accurately informed of the mineral, gas, and oil markets if you wish to profit on your minerals. An experienced mineral right broker can keep you informed so you can make the best possible decision on when to sell your mineral rights.
Why Should I Choose The Mineral Auction to Represent Me?
At The Mineral Auction, our Texas mineral rights brokers have been helping mineral, gas, and oil rights-holders make informed decisions on when to sell their mineral rights for many years. Our skilled and experienced brokers know the markets inside and out, and we will use this knowledge to make sure you know when to sell your minerals. We will also use our market knowledge to help you decide how much of your mineral rights you should sell.
You need our skill and expertise on your side so that you make the most profitable decision and do not wait too long to sell your mineral rights. If you wait too long, the wells on your land may become marginal or non-economic, and you will see little to no financial gain. Do not wait any longer; call the brokers of The Mineral Auction today at (512) 698-2802, and we will make sure your wells do not get to the point that they are marginal or non-economic.
Frequently Asked Questions
Deciding when to sell your mineral rights is a decision that has a lot of uncertainty. This decision is directly related to the mineral markets, which also involve a lot of uncertainty. With our years of experience, we can remove some of the uncertainty and help you make the best selling decision for your interests. Below we have included a few frequently asked questions and their answers for your review.
What is a dry well?
A “dry well” is a term that is defined in a mineral lease, but it usually defines a well drilled to a certain depth such that there is no probability of discovering gas or oil. If the well on your land turns out to be “dry,” then you will not receive the royalty payments that you may have expected.
What are common risks of waiting to sell?
Dry wells might not always have been dry. Mineral wells are vast and are often found under multiple tracts of land. These wells can be depleted by surface activity on a neighboring tract, which in turn depletes the minerals from under your land. In these cases, if you had sold sooner, you would have had minerals. But because you waited, your well became dry because of drilling operations on a neighboring tract.
Not only might your well become dry, but the mineral, oil, and gas markets are constantly fluctuating. If you wait too long to sell, extracting your minerals may become non-economic. If this occurs, you will not make much money.
What may cause the mineral markets to fluctuate?
The mineral, oil, and gas markets can fluctuate for a wide variety of reasons. Among the more common reasons for market fluctuation include the following:
- Price speculation
- High/low demand
- Limited/excessive supply
Regardless of the reason, the mineral markets are susceptible to a wide variety of outside forces. At The Mineral Auction, our Texas mineral rights brokers understand these forces and will make sure you are selling your minerals when the market is favorable.
The Texas mineral rights buyers of The Mineral Auction have years of experience helping mineral rights owners maximize profits for the resources on their land. We have extensive knowledge about the mineral, gas, and oil markets, and we will use our experience to make sure you sell your mineral rights before they become marginal or non-economic. You should not wait too long to sell your mineral rights. Please contact us today at (512) 698-2802 so that we can make sure you are selling your rights at the appropriate time and getting the most out of your minerals.