Mineral And Leasehold Acquisition

Getting linked to the ownership of minerals beneath the ground will be the domain of oil and gas royalty interest programs or deals. These types of deals involve receiving a portion of the proceeds from extraction of natural resources like oil and gas. You'll find some limitations concerning such investment opportunities but there's also the potential for big payouts.

Some of the benefits of owning an oil and gas interest run the gamut and in general are less riskier than owning a real well. Owning a well introduces a host of problems including messy liability issues and also major expenditures for production.

Owning interests in oil and gas will remain in perpetuity. visit this hyperlink means that however the working interest of a particular well may change hands several times, the interest of the royalty holder will remain intact throughout these changes.

Holding oil or gas royalty interests has the added benefit of no liability issues. Liability issues can be between the working interest as well as the government or between the subcontractors and the operators of the well itself. You'll find environmental liabilities that has to be considered, property damage, injury, and of-course common liability difficulties with debtors as well as a business going under. Liens held against the operations of the well may also occur which places those with working interest at a disadvantage if you can find injuries or a lawsuit is brought again the company producing the resource.

Another benefit is the fact that you can find no extra costs affiliated with owning an oil and gas interest. The working interest will be the sole responsible party in all of the of the operational costs for the well. This could include metering, plugging, pumping, up to and including abandonment.

Luck as in the majority of investments in life could also play a big part. However not actively linked to the production, sometimes more wells will be drilled on the same lease meaning that the owners of the oil or gas interest will take advantage of the extra sales following production from the new wells. All again without the operational cost.

Unlike in real estate as well as other types of investment, no capital calls are allowed. Those holding interest in oil or gas will not have to worry about requests for payment because those interest holders are divorced from the actual operation of the well for example drilling.