Tower Rock’s methods and approach explained in-depth.
How do I get an offer from Tower Rock Oil & Gas?
See Our Process. Simply call us at 800-417-3329, or email us through the link for “Request a Quote.” Provide us the requested information, and we’ll perform an evaluation and send you an offer for your interests.
How do you determine the value of my interests?
Tower Rock generates aggressive offers for non-producing minerals by analyzing surrounding activity including drilling, production, and leasing. We factor in dry-holes, surrounding well performance, and the likelihood of drilling one, two, or more wells. For a producing property, we perform a decline-curve analysis on the wells, which means that we forecast the production based on its prior performance.
That production forecast is then pit against time value of money, taxes, commodity pricing, etc., to generate a discounted cash-flow analysis. Feel free to give us a call and we’d be happy to discuss this in more detail with you!
How long does the process take to get paid?
NOT LONG! We take pride in our ability to quickly generate offers and close deals. While much of our timeline is dictated by receiving timely and quality information from you, we can generally get payment to an interest owner with clean title within 10-15 business days of the original request for the quote.
How much will it cost me to get an evaluation and offer for my interests?
Absolutely nothing. Tower Rock Oil & Gas will perform an evaluation free of charge, and will perform title and due diligence at our cost once you decide to complete your transaction with us.
Does Tower Rock Oil & Gas charge a fee to evaluate my interests if I don’t end up selling?
We will gladly help provide you an evaluation and offer for your interests, even if you choose not to sell. If you’re looking for an evaluation of your property simply for tax or estate planning purposes with no intent to sell, we can discuss these services with you. Please give us a call.
Why Tower Rock Oil & Gas?
Our goal is to provide you with an excellent experience. We strive for excellent service that is timely, responsive, transparent, informative, and personalized, and to provide you with the best price available for your interests.
Why would Tower Rock Oil & Gas want to buy my mineral rights? Why would they assume the risk?
Our customers ask this question after reading “Who Would Sell.” Although each deal has a fair amount of risk, we mitigate our risk by purchasing interests across the US. As an individual, you take on the risk of one property in one specific area. If someone drills a dry hole near your property, the value of your investment could plummet instantly. We are faced with dry holes and lose producing wells all the time, and, although painful, such losses do not affect us as severely due to our diversification.
Will the value of a producing mineral interest remain steady over time?
No. The mineral resources underground are finite, and eventually, will be depleted. This decline rate is taken into consideration when calculating the value of your interests. Many of our clients take the opportunity to divest from these depleting assets to invest in others that appreciate in value.
Common Oil & Gas Mineral and Royalty Terms
The party who has been assigned an Oil and Gas Lease or Overriding Royalty.
A legal document which assigns or conveys Oil and Gas Leases or Overriding Royalties.
The party who has conveyed an Oil and Gas Lease or Overriding Royalty.
Cash settlement negotiated and paid to a mineral owner by the lessee (typically, the operator) after signing a lease.
Once a well is producing, a statement (or stub) which documents the name of the well, production month, the volume produced, price received, and net interest of the payee.
Absolute and unquestionable legal ownership of specific minerals, free of lien or levy from creditors or other parties. Without “clear title,” the minerals carry risk of future lawsuits and claims and reduce their value.
A legal document, usually a deed or assignment, which transfers property title from one party to another.
A document provided to the mineral owners by the operator of a well recently drilled. The document lists the name of the well, the legal description, the division of interest, and other pertinent facts surrounding how the mineral owner will be paid. Division Orders can sometimes be confused with Transfer Orders, which provide the same information except they are provided upon a transfer or sale of interest.
The rights to negotiate an oil and gas lease. These rights are not always tied directly to ownership.
An additional cash payment made after the expiration of the primary term to extend the lease. The amount is defined in the original lease agreement and applied only if that lease grants the lessee the option to extend the Oil and Gas Lease.
The party in a conveyance receiving the land, minerals, etc.
The party in a conveyance who currently owns the land, minerals, etc., who is conveying them.
Gross Mineral Acres
Total number of acres in a given tract of land.
Held by Production (HBP)
A common condition in a lease that extends an operator's exclusive right to operate the lease as long as they are producing a commercial amount of oil and gas.
A person who negotiates with mineral owners for the sale or lease of their minerals, typically on behalf of another party. A Landman is also typically responsible for performing preliminary title research in the local courthouse. Lease (also “Lease Agreement,” “Oil & Gas Lease”) - A legal document between a mineral owner and an operator (typically) which defines the legal location of the minerals, the term length, possible extensions, bonus, and royalty.
An upfront cash settlement given to a lessor (mineral owner) by the lessee (operator) for signing a lease and providing the operator an option to develop the minerals. This bonus is in addition to any royalty paid if/when a successful well is producing.
Legal Location or Legal Description
The geographical description of the property (minerals) for the purpose of a legal document or transaction.
The party who gives the lease (i.e. mineral owner).
A legal document (conveyance) which declares the transfer of ownership of specific oil and gas minerals rights. This document is executed, notarized, and recorded in the local county courthouse whenever minerals are sold or transferred.
Net Mineral Acres (NMA)
The net acreage owned by a mineral owner of a specific tract of land. For example, if a 200 gross acre tract of land is owned by ten equal partners, each with 10% ownership, then each would be said to own 20 net mineral acres.
Purchase and Sale Agreement (PSA); similarly, Letter Agreement (LA)
A contract between a mineral owner and a mineral buyer which defines that terms of purchase, including a description of the minerals, the offer price (or price per acre), and the amount of time allowed for due diligence (title research) and funding.
Running Title or Title Research
Researching document(s) of mineral ownership, including significant historical events like sales and inheritance, to prove who owns the minerals associated with a particular piece of property. This document is typically prepared by a title company.
WE ARE THE RIGHTS RESOURCE ™ AND WE ARE HERE FOR YOU!
Most mineral owners do not fully understand the value of their minerals. “My grandfather always told me not to sell my minerals” is something we hear often. We are certain that Grandpa did not mean that you shouldn’t understand the value. Understanding what you own and what factors affect their value, whether you want to sell or not, is something we encourage.
Let us fulfill our commitment to being The Rights Resource and reach out today.
Browse here for quick reference and answers to some common questions