Texas Mineral Rights
Mineral Rights are serious business in the state of Texas. Tejas Minerals is here to help coach, teach and help you get the most out of your Texas mineral rights. We invest in oil and gas mineral rights and are looking to purchase mineral rights all across our great state of Texas. Let us help you find the best deal for your mineral rights or royalties at no charge. If you’re trying to lease your Texas mineral rights, we’re also a great wealth of information.
Spend some time with us and learn more about how to sell mineral rights, and how you can maximize your wealth through buying, selling and leasing your minerals.
About Selling Mineral Rights
Many of us have been told to never sell our mineral rights. While retaining your mineral rights can make a lot of sense, it is helpful to be a little more open minded. Minerals are an investment, just like anything else, and should be treated as such. It is never wise to be too dependent on any investment, and if your Mineral Rights are a relatively significant part of your net wealth, and if you rely on them for your livelihood, then you should strongly consider selling all or part of them.
About Selling Royalties
An oil & gas royalty is a percentage of total oil/natural gas production paid to the mineral owner. The percentage is defined in the lease, and the net payment paid to the mineral owner is less reasonable production costs. Royalty percentage is typically 1/8 of production or 12.8%, however the mineral owner can always negotiate a higher royalty!
Remember, royalty and mineral rights are NOT the same thing. As a mineral owner, you have the right to sell your royalty without selling your mineral rights. If you sell your royalty, then you are selling any production or revenue resulting from the current lease and production of your mineral rights. If production ends, and the lease expires, the royalty that you sold is no longer of value. Two years later, when an Oil & Gas company wants to lease your land and drill a well, the royalty from the new lease and well will be yours.
Sell Mineral Rights or Royalty – How to Decide?
Selling your royalty interest can make sense if you want to protect against uncertain payments while retaining some upside and ownership for the future. However, you should remember that Caddo, or any other Royalty/Mineral Rights buyer will pay a discount for a royalty interest for the same reason.
In a situation where we’re only buying royalty interest, we’ll look at it as if we’re buying an interest in the specific well’s production and nothing more. Also, you should look at what the Oil & Gas laws are in your state, and what your lease says. How long is a lease held by production? And if you did sell your mineral rights, would they ever revert back to the surface owner (presumably you).
Mineral Rights for Sale? – Talk to Tejas Minerals!
If you want to talk about selling a royalty interest, give Tejas a call or contact us via the form on the right. We’ll get back with you within 1-2 days!