Buying Mineral Rights Oil and Gas Royalties Selling Mineral Rights
Mineral Rights Assets
January 12, 2023 No Comments

Mineral Management and How it Affects Your Assets

Whether you find yourself immersed in good times or more challenging ones, mineral interests can provide you with income streams unlike any other assets. Into this foray have come entities such as Ten Cow Holdings, with teams of specialists who provide a turnkey solution to the often complex and time-consuming responsibilities that come with mineral ownership.

Indeed, protecting and maximizing the value and potential of minerals, oil or natural gas assets – because of the complexity of this asset class – can present itself as a full-time job. The right kind of mineral management will handle the following in a concise, professional manner:

  • Title analysis and research
  • Turnkey lease evaluation and negotiation solutions
  • Division order processing and verification
  • Lease administration and compliance monitoring
  • Well proposal analysis
  • Portfolio performance reporting and analysis
  • Sales and auction coordination
  • Research and recovery of escheated and suspended funds
  • Ad valorem tax administration
  • Regulatory compliance monitoring via SSAE 16 (SOC-1) audit report
  • Dormant mineral review and claim filings
  • Dynamic energy environment to keep clients informed

Mineral management firms, essentially, are comprised of oil and gas professionals who run the gamut from attorneys and accountants to landmen, estate planners and even geologists and reservoir engineers. Regardless of where a client or mineral interest is located, the assets an individual such as a landman manage are more than just an asset to be managed and extrapolated for wealth – rather, these assets are safeguarded for future generations.

If you are a landowner, we can tell you that you’re better off taking advantage of mineral management firms to manage your mineral assets, thereby avoiding the possibility of entering into a poorly-negotiated lease agreement that could cost you dearly in terms of additional expenses and lost revenue.

Understanding the Bottom Line

It’s unlikely that you or your beneficiaries are experts in mineral rights, and one primary challenge of inheriting rights to minerals is ensuring that you are capturing their full value – an effort that oftentimes (as we mentioned in the beginning of this article) becomes a full-time job. Your best bet is to seek out an experienced mineral management entity to make sense of your assets, ensure you hand them down with accurate documentation and make the most of them in the form of lease bonuses and royalties.

Ten Cow Holdings can be a knowledgeable, invaluable wealth management partner that understands specialist information such as the cost basis for inherited mineral rights and the day-to-day operational concerns connected with oil or natural gas assets. While no one will ever accuse selling mineral rights of being en vogue, Ten Cow Holdings can make the entire process easier to understand. Call us today at (210) 960-1564.

Oil and Gas Royalties Selling Mineral Rights
Oil Refinement
July 17, 2022 No Comments

How Oil is Excavated and Refined…and How Mineral Rights are Involved in the Process

The technical side of refining and excavating oil gets pretty deep, but in a nutshell, the crude oil is heated by a furnace and is sent to a distillation tower, where it is separated by boiling point; from there, the material is converted by heating, pressure or a catalyst process into finished products including fuels like gasoline and diesel, and specialty products like asphalt and solvents.

Put succinctly, the action of “refinement” breaks crude oil down into its various components, which are then selectively reconfigured into new products.

Oil is excavated (or extracted) using different methods depending on geology and location, a process that occurs, obviously, before it is sent to refineries to create the aforementioned refined products we rely on every day, such as gasoline. The first efforts to tap the oil sands resource began in the mid-20th century using hot water to separate bitumen from sand; since then, the process has evolved into the cutting-edge methods used to extract oil today.

Let’s briefly go over the ways oil is excavated in this day and age, based on the two primary oil types: conventional and unconventional.

  • Conventional Oil – This type of oil is excavated from underground reservoirs using traditional oil rig pumping and drilling methods; as a liquid at atmospheric temperature and pressure, conventional oil flows through a wellbore and a pipeline (unlike bitumen, which is too thick to flow without being heated or diluted), making it easier and less expensive to recover because it requires less processing after excavation.
  • Unconventional Oil – This cannot be recovered using conventional pumping and drilling methods, and as such it demands advanced extraction techniques. Oil found in geological formations that make it more difficult to extract, such as light tight oil (LTO) is also referred to as “unconventional” oil because non-traditional techniques are demanded to excavate the oil from the underground reservoir. Additionally, this kind of oil excavation uses horizontal drilling and hydraulic fracturing.

Other ways oil is recovered or otherwise extracted/excavated throughout the world include:

  • Surface mining
  • Oil sands tailings
  • In situ recovery
  • Steam-assisted gravity drainage (SAGD)
  • Cyclic steam stimulation (CSS)

Where Mineral Rights Come Into Play

Mineral rights often include the rights to any oil and natural gas that exist beneath a property, and the rights to these commodities can be sold or leased to others. In most cases, oil and gas rights are leased; the lessee is normally uncertain if gas or oil will be discovered, so they generally prefer to pay a small amount for a lease rather than pay a larger amount to buy.

The bottom line is that if a lessee finds oil or gas and begins production, a regular stream of royalty payments usually keeps the terms of the lease in place.

From oil drilling and mineral mining to understanding how to sell mineral rights, Ten Cow Holdings can help all landmen and others with any questions or concerns. Call us today at (210) 960-1564.

Selling Mineral Rights
Landman Mineral Rights Expert
June 17, 2022 No Comments

The Role a Qualified Landman Plays When Verifying Mineral Rights Ownership

In the world of gas and oil, a landman is an individual who works for companies that perform exploration and production of these elements – but it goes much further than that. A qualified landman also researches mineral rights and titles for the purpose of negotiating with property owners for those aforementioned mineral rights on behalf of a company wishing to exploit the minerals beneath the surface of privately owned land.

Put simply, a landman represents a middleman between the stakeholders of an oil and gas operation and private landowners.

In this article, we’ll take a look at the role a qualified landman plays when verifying mineral rights ownership because, after all, a landman’s role requires not only legal knowledge but the talents of a salesperson and an uncanny ability to dig deep into courthouse records.

Ten Cow Holdings Fun Fact: The advent of “hydraulic fracturing” – essentially, the fracturing of bedrock – has yielded additional opportunities for landmen within the past decade.

The responsibilities of a landman can be broken down into three categories: research, administrative and legal, and this list of responsibilities, as we touched on in the very beginning of this post, range from determining mineral rights to negotiating a mineral lease.

Let’s now take a brief look at what’s involved within these categories.

Research

  • A landman must be an expert in researching courthouse documents, using the information to identify rights-of-way and negotiate joint ventures, leases and other oil and gas industry agreements.
  • Some landmen operate “in-house” (directly for a specific oil or gas company) for the purpose of consolidating, organizing and analyzing title documentation for the assessments of rights.
  • Landmen maintain internal title data and are responsible for performing updates, including curing errors and omissions on a title or lease.

Administrative

  • A landman provides administrative support to the title department of an oil and gas company, helping to keep records updated and organized.
  • A landman supports the drilling/operations staff in a myriad of ways.
  • A landman is part of, and works on, a geological development team.
  • Landmen manage contract personnel, thus creating work assignments for lease acquisitions.
  • Landmen prepare reports on the status of rights acquisitions and present them to management.

Legal

  • A landman boasts experience in property or land management, monitors and records rental receipts and develops lease agreements.
  • A landman creates and administers specialized lease documentation.
  • Landmen develop an advanced knowledge of a wide range of land transactions, from farm-ins/farm-outs to a plethora of other contracts.

With the development of ever more diverse forms of energy resources, the landman profession is poised to live on for years to come. For additional information about this topic or to discuss buying mineral rights or selling mineral rights, contact Ten Cow Holdings LLC by calling (210) 960-1564.

 

Selling Mineral Rights
Selling Mineral Rights
May 18, 2022 No Comments

Looking to Sell Your Mineral Rights? Finding the Right Company to Buy is Crucial

While a quick Google search will get you in the general area when looking for mineral rights buyers, the process is a little more complex than that. The challenge is knowing which royalty buyer to work with – indeed, for every legitimate mineral buyer there are a plethora of others who would like nothing more than to take advantage of you.

Before you even get into selling mineral rights, you should have something of an idea about the types of people these oil and gas royalty buyers are.

When it comes to legitimate buyers, there are essentially three kinds:

• Individuals (typically wealthy folks, though others may be looking for oil and gas royalty income as a way to generate return)
• Private Companies (typically those boasting an in-house team to evaluate deals)
• Private Equity-Backed Entities (these companies receive their funding directly from Wall Street or other private equity-backed funds)

Ten Cow Holdings Pro Tip: So long as the mineral rights buyer is legitimate, any of the above types of buyers is safe to consider selling to.

It’s also worth noting that operators sometimes purchase oil and gas mineral rights; however, operators nearly always pay below market value. We can tell you that when an oil and gas operator approaches you to purchase your mineral rights, this is a good indication that they soon plan to drill – but do not sell mineral rights to an operator without considering competitive bids.

Finding the Most Reliable Mineral Rights Buying Company

Okay, so when it’s time to sell your mineral rights, you must find a reliable company to work with. Because this can be a complicated process, as we alluded to in the beginning, it’s important to work with someone you can trust to help you through it.

The following represent what we believe are the top things to keep in mind during your search.

• Do Your Research – Read reviews and compare costs because there are many purchasers out there.
• Ask Questions – Have questions or concerns about selling your mineral rights at any point during the process? Don’t hesitate to ask. It’s vital that you understand all of the details prior to signing any papers.
• Get a Second Opinion – It might be helpful to talk to someone who has experience or knowledge in this area if you’re not sure if you should be selling your mineral rights.
• Look for Experience – One of the most important things we can recommend when choosing a mineral rights buyer is to look for one boasting a great deal of experience in the field, as you can rest assured knowing they have a handle on what they’re doing – and that the sale will go smoothly.
• Check the Company’s Background – -Make sure a company is reputable before you work with them; a reliable buyer will offer no resistance when providing you with this information.
• Go with Your Instincts (Trust Your Gut) – It is best to walk away if you’re not comfortable with a certain buyer; it is vital that you find someone you can trust when it comes to selling your mineral rights.

At Ten Cow Holdings, we pride ourselves on being a reliable and trustworthy source for all of your mineral rights questions. From landmen and inherited mineral rights to royalty interest and everything in between, you can contact us today at (210) 960-1564 to discover why we are one of the most trusted names in this industry.

Uncategorized
SCOOP
April 16, 2022 No Comments

What is SCOOP…and How Does it Apply to Mineral Rights?

The South-Central Oklahoma Oil Province Play, also known as SCOOP, is a southern extension of the Woodford Shale’s Cana Play, encompassing 3300 square-miles of south-central Oklahoma and with most of the interest focused on four counties: Stephens, Grady, Garvin and Carter. Here’s what’s important to know about this, though – as the South-Central Oklahoma Oil Province Play continues to evolve and expand, it is becoming more enthralling to additional oil producers by offering high yields or oil and condensate.

 

Ten Cow Holdings Fact Corner: With break-evens ranging from USD29 to 43/bbl, Oklahoma’s SCOOP Shale Play enjoys a reputation (as one of America’s hottest new areas for horizontal growth) that proceeds it, with more effective completion designs and core area development yielding a ~70-percent increase with regard to initial production (IR) rates (now competitive with rates for the Permian and Eagle Ford).

 

So how does the South-Central Oklahoma Oil Province Play apply to mineral rights?

 

If you own mineral rights in the South-Central Oklahoma Oil Province Play, there is a possibility you’re sitting on a proverbial gold mine. That’s right: in this scenario, your mineral rights are connected to one of the largest deposits of gas and oil in the world. As such, you’re faced with two choices – insist that future royalties come directly to you or sell for a lump sum to an interested buyer based in the area in which you own minerals.

 

Before we go any further, we want to share with you some interesting statistics concerning the South-Central Oklahoma Oil Province Play.

 

  • The region encompassing the South-Central Oklahoma Oil Province is known as the “SCOOP formation,” and this formation produces copious quantities of oil and gas in over 12 counties in Oklahoma (the most important four we highlighted above).
  • There have been more than 1,475 wells drilled in the South-Central Oklahoma Oil Province Play formation, with an average daily gas production of 409 Mcf per day and oil production of 32 barrels per day.
  • The cumulative amount of gas produced from each well on average is 1,858,331 Mcf; average cumulative oil is 96,745 barrels.
  • The average well in the formation generates about $86,627.63 a month based on average oil prices of $60 per barrel and $2.25 per Mcf gas pricing.

 

The right company with the right experience in actively buying mineral rights and oil/gas royalties in the South-Central Oklahoma Oil Province Play can value your mineral royalty and even, in some cases, override royalty interests to purchase those assets at a competitive price. You can receive a lump sum upfront, which allows you to realize the value of your asset – right now.

 

If you are looking to sell mineral rights, call Ten Cow Holdings today to discover why we’re one of the leading oil and gas mineral rights entities in the country. We can be reached at (210) 960-1564.

Buying Mineral Rights Selling Mineral Rights
Selling Mineral Rights
January 17, 2022 No Comments

So You Have Mineral Rights You Want to Sell… Here’s What You Need to Know

For families that own land in oil-producing regions such as Texas, dealing with mineral rights some members may have inherited can produce a long-lasting financial windfall. With a check reliably being delivered every month for years or even decades, some mineral asset owners gradually become accustomed to the increased income without stopping to question who’s actually paying them or whether they’re getting all the money they’re entitled to.

Then, there’s the situation wherein mineral rights contracts are established by a family member who worked in the oil industry or who took a more hands-on approach with regard to their mineral assets; when that knowledgeable person passes, a spouse or descendants might start to realize how little they understand about the mineral assets they own.

Inheritance of mineral rights can be a wonderful thing…or a hassle. Unlike surface rights, of which most of us are more familiar, inheriting mineral rights can present issues which are more often off the beaten path. Over the years, as families leave farms and relocate across the country, knowledge regarding mineral rights tends to get a bit hazy, or sometimes lost. If you’ve inherited mineral rights, or expect to, this article is for you.

The following represent the three major things to look out for, at least the way we see it, when considering the sale of mineral rights.

  • Mineral Rights Fragmentation – This refers to a phenomenon unfolding every day with respect to America’s minerals: they’re being divided into smaller and smaller ownership pieces, a process known as fragmentation (or fractionalization). Here’s what you need to know about this: it is commonplace for people today to own small – and very small – fractions of mineral interests, and the administrative oversight demanded of such small interests is often what drives people to sell their mineral rights and inherited mineral interests.
  • Ensure You Own Mineral Rights on Inherited Property – Has the mineral estate (i.e. the mineral rights) ever been served (separated/removed) from the surface estate? This is something that must be considered, though the answer is sometimes complex, taking considerable time and effort to confirm. Typically, an oil and gas landman is the professional discipline that researches and identifies mineral rights ownership.
  • Know What to do When Receiving a Lease in the Mail – Often times, an oil and gas lease proposal that arrives in the mail is the first time people even become aware of inherited mineral rights, and as such have reason to educate themselves about the matter. This, in turn, prompts a bevy of questions that need to be answered, including is this a fair deal? Do other family members know about this? What is the “going rate” for royalty percentage and lease bonus payments? Will it be necessary to hire an oil/gas attorney, landman or accountant? It’s important to seek out and qualify competent professional help when you think you may need it.

Here’s the scoop: Ten Cow Holdings LLC can help you with any issues you may be experiencing as you sell mineral rights, buy mineral rights or when you’re thinking of leasing mineral rights. Call us today at (210) 960-1564 to learn more.

Buying Mineral Rights
Buying Mineral Rights
December 15, 2021

Top Five Tips Regarding Buying and Selling Mineral Rights

Selling and buying mineral rights isn’t that new of a concept, normally being handed down through generations – in fact, families have been receiving royalties from oil and gas entities for over 100 years. Until recently, the sale of oil royalties primarily involved institutions, as these transactions have traditionally been tied to large endowment funds and “ultra-high net families.”

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Selling Mineral Rights
Selling Mineral Rights
November 22, 2020

Selling Mineral Rights: What You Need to Know

In a nutshell, the following represent what’s vital to know about the sale of mineral rights:

The old maxim that mineral rights should never be sold may need updating.
Changing industry dynamics, the influx of investment monies into funds that acquire mineral rights, low borrowing costs, high stock market valuations and other factors have all come together to drive up demand for minerals – and the prices offered for mineral rights.

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