When considering the sale of your mineral rights, it's important to understand what you own and your options to determine the best course of action.
1What are Mineral Rights?
Mineral Rights are the rights to oil and gas in place under a parcel of property and the exclusive right to produce and develop oil and gas from the property. Mineral Rights can be severed from the surface ownership and most cases are where there has been production. Most commonly, this refers to oil and gas, but could be other commodities. This ownership gives you the right to explore, develop and produce oil, gas and any other commodities lying below the surface. As the owner of Mineral rights, you have the option to lease, sell or bequest all or a portion of your mineral interest.
2What are Royalties?
Royalties are a cost-free right to share in the gross production of oil and gas. Royalty payments are based on your oil and gas lease percentage and a proportionate share of earnings from production in the lands. Royalty interests are “cost free” in that you do not have to pay for the cost of drilling and development of oil and gas.
3What is a “Net Mineral Acre”?
A Net Mineral Acre (“NMA”) is a unit of measurement to represent the amount of mineral acreage owned in a certain tract of land. A Seller’s NMA is calculated by multiplying the number of Gross Acres in the tract by the Seller’s undivided interest in the mineral rights associated with the tract.
4Reasons people sell Mineral Rights
Immediate Cash Flow
Elimination of Accounting and Paperwork
Investment Reclassification
Reduce exposure to the volatile energy market
Estate Settlement
Tax Advantages
Expensive to manage
5How Does Petroleo Value and Buy Mineral Rights?
Every deal is different, but our proprietary model uses the following factors when making evaluations:
  • Market price

  • Operator
  • 
Production History
  • Engineering
  • Development timing
  • Field Rules

  • Geology

  • Economic and Political Factors
  • 
Commodity Prices on New York Mercantile Exchange
6How long does the evaluation process take?
Our streamlined process mentioned above typically takes 3-6 days.
7What methods of payment are used at closing?
Petroleo offers the option of a company check or direct wire to mineral owner, upon execution of the deed.
8Would Petroleo consider buying in other counties?
Yes, as long as the interest is located in the Permian Basin.
9How do I sell my Mineral Rights?
If selling is an option for you, contact us so we can evaluate your mineral interests and work up a monetization strategy that best fits your current situation.
10How do I request an offer?
Click on the contact box, on any page of the website, complete the data entry and one of our qualified landmen will contact you within 24 hours.

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