Step-by-Step Guide to Selling Your Oil
and Gas Mineral Rights
Don’t worry if you don’t have all of the information we have outlined below. We understand mineral ownership can be confusing and we are here to help you along the way.
Step 1: Preliminary Assessment
We suggest gathering all relevant documentation, including deeds, leases, existing agreements, and, most importantly, current revenue checks.
Step 2: Negotiation Process
Be prepared to discuss the purchase price you seek for your minerals and understand industry terms such as lease royalty rates, bonus payments, net mineral acres, and gross acres.
Step 3: Contract Drafting and Review
Once both parties agree on the terms, a formal contract will be drafted. This document will outline all aspects of the sale, including payment details and rights transfer. The parties execute the agreement then the title review, and due diligence begins.
Step 4: Due Diligence
1280 will conduct our due diligence to verify the information you've provided. This may include reviewing production records, assessing the geological potential, and examining any existing contracts and chain of title.
Step 5: Closing
After the contract is signed and due diligence has been finalized, closing will occur very shortly thereafter.