Oil And Gas Lease Review

It may seem the company pulls out a figure out of some magic hat but there's really a formula behind their offer if, as an example, you are looking to sell oil and gas lease.

The process may be rather tedious or quite easy, again, depending on in which you are located, how big is your property, if all the required information are on hand and the way "legally-free" your interest is. What that means is whether the property title is under your name or corporation, or it's an individual or common property. Obviously, being owned by many entities can complicate the negotiations.

Nevertheless, the process to sell oil and gas lease takes days or weeks. More often than not, especially when managing experienced companies, the onus is on the property owner to accomplish all of the requirements to hasten the proceedings.

There's no need to go in to the mathematical equation right now because it is quite complicated. You do need the expert advise of an attorney specializing in transactions to sell oil and gas lease or an accountant that will break down the numbers for you.

The buyer's proposal varies as outlined by certain parameters.

Reservoir - This refers to the underground sedimentary formation, that can either be limestones (shells that settled on the rock), sandstones (sands that are fused together), dolomites (limestone + magnesium) or shale (mud squeezed together) or possibly a mixture of these porous rocks. Based on its chemical composition, it can either hold oil or gas.

Production curve - Probably among the Discover More important factors to consider before you decide to sell oil and gas lease. Petroleum engineers assess your property to determine the mixture of water in correlation to the total amount of oil and gas. Also they can also project the decline curve within the reservoir. This ties with the future production and development of your property.

Taxes - The amount of levy in purchase or lease transfer rely upon what county your property is located in. This will impact how much the offer is since the company usually shoulder these costs.

The oil and gas company also considers commodity price risks, income flows, as well as the capacity of the operator to deliver.

So before you try to sell oil and gas lease, talk to a specialist who will basically help you examine the buyer's offer using all the parameters stated above. That way you protect yourself from holding the short end of the stick.