Leasing vs. Selling Your Mineral and Royalty Interests Part 2

In a previous post, we began helping you understand the advantages and disadvantages of different options you have when dealing with your mineral interests. Since we previously went through the process of selling oil and gas mineral rights, in this post we’re going to continue and briefly explain what it means to lease your mineral interests.

Leasing mineral interests is an arrangement that exists between oil companies that lease rights from owners in order to bring oil and gas reserves to the market. This involves the two parties agreeing to specific terms, privileges and obligations to adhere to during the exploration and production stages.

Leasing your mineral interests, similarly to renting a home-property out, allows you to retain ownership over your assets while making a regular profit off of it. While selling your rights will get you a large, up-front payment, you will still get a bonus payment when you lease. However, since you still own the interest, you also have the possibility to receive future lease bonuses and royalty payments that could, in the long run, be a larger sum than the payment received for selling outright.

The downside to this is that leasing is a much less definite process. There is no guarantee that oil or gas will be found in your minerals, and if there are, with time they value will only decrease as the asset will deplete.

Hopefully the information we’ve provided you will help you determine how to proceed with your mineral interests. If you’re interested in selling oil and gas mineral rights, trust EndeavorAcquisitions.com to help. We’ve assisted thousands of mineral owners with the acquisitions process and can help you with your personal and financial goals in the process.