What kinds of oil & gas royalty interests do you buy?
REgroup almost certainly handles your kind of interest - we buy mineral interests, royalty interests, and overriding royalty interests (see next question). Single- or multiple-well interests. And producing and non-producing interests, for wells located throughout the U.S.
What’s the difference between mineral interests, royalty interests, and overriding royalty interests?
|Mineral Interests||Royalty Interests||Overriding Royalty Interests|
|Generates revenue from well production||Y||Y||Y|
|Owns the underground minerals||Y||Y||N|
|Ownership continues after production stops||Y||Y||N|
|Collects upfront bonus payments||Y||N||N|
|Has the right to executive leases||Y||N||N|
|Pays to operate or drill the well||Y||N||N|
Why does the amount of my check vary each month?
One or more of at least four factors may be in play:
- Number of days in the month
- Price of oil or gas, which can fluctuate in international markets
- Any mechanical or operational problems with the producing equipment
- Volume of oil or gas produced, which may involve reservoir decline (especially over time)
How are my payments calculated?
Your payments reflect the percentage of interest you have in your well’s production, times the value of oil or gas produced in any given month (see above), minus applicable charges.
Why would I stop receiving my monthly check?
There are three likely reasons:
- Petty Suspense is when the amount you are due is below your company’s minimum required to send a check - you’ll receive a check when your total reaches the minimum.
- Legal Suspense, due to a change in ownership or address of the company that distributes payments - your check should arrive after the transition is complete.
- Your well is no longer producing oil or gas - if your checks have been gradually becoming smaller, this may be the case. Unless you own an overriding royalty interest, you may still own minerals under the ground.
How do you determine the value of my royalties?
Our Quick Quote process involves consulting registered Petroleum Engineers, and takes into account a number of steps, such as:
- Analyzing historical production data and cash flows
- Monitoring decline rates
- Calculating remaining reserves
- Performing decline curve analyses to estimate future well performance and revenue
- Checking NYMEX futures pricing
The end result is an accurate and fair offer that you are free to accept or decline to suit your needs.
What’s the easiest way to transfer my royalties to my heirs now?
Let REgroup do this for you, including preparing transfer deeds.
How do I request an offer?
It’s easy - have your three most recent check stubs handy, and contact us your choice of three convenient ways:
- Call 1.800.590.6034
- Complete our Quick Quote Form
- Email us at info[at]regroup.net
We’ll call you with a fair and accurate offer within 48 hours.
Am I obligated to sell, once I ask for and receive an offer?
No. And your quote is free, so you risk absolutely nothing.
How long do I have to decide, before the offer changes?
Take all the time you need - there’s no pressure to make a hasty decision. You can contact us when you’re ready, and well re-evaluate your quote to ensure you have current and accurate pricing.
What about Infrequently Asked Questions?
Contact us with any and all questions we didn’t answer here. We want you to make a fully informed decision about your oil or gas royalties.