Oil And Gas Lease

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

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

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

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

The buyer's proposal varies in accordance with certain parameters.

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

Production curve - Probably among the more important factors to consider prior to deciding to sell oil and gas lease. Petroleum engineers assess your property to look for the mix of water in correlation to the amount of oil and gas. Also they can also project the decline curve in the reservoir. This ties with the future production and development of your property.

Taxes - The amount of levy in purchase or lease transfer depend on what county your property is located in. It will impact simply how much the offer is considering that the company usually shoulder these costs.

The Oil and Gas Lease Review (view Listoid) and gas company also considers commodity price risks, income flows, and the capacity of the operator to deliver.

So before you attempt to sell oil and gas lease, talk to a professional that 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.