Fueling Your Future

When you buy a property, you either buy the surface rights (like when you purchase a house, land, or real estate) or you buy the mineral rights. Mineral rights are deeded properties that exist under the surface. In fact, the chances are pretty good that if you own a house or land, someone else may already own the minerals under that property. If you own the minerals YOU have a right to sell them for profit. 

We all know oil and gas exist underground. If you own the mineral rights to a section of land you own the oil and gas too! So, if an oil and gas company wants to drill a well for your oil and gas they pay YOU to do so. Every month you get a portion (royalty) on the oil and gas that they take from your land. This monthly income can last 50 years or more. Our job at B Well Mineral Management  is to find these deals for you and facilitate a smooth transaction. 

Example:

You reach out to us and we discuss your goals. You say you want long term monthly income and have $50,000 to invest. We then find producing minerals that are paying a monthly royalty (example $1300 per month) for sale. Royalties are determined by the price of oil and gas, as well as how much oil and gas the well is producing. We research the property to determine that the property is valued correctly. We examine things like historical production, exising terms with the oil company, room for future wells, and decline rates. All of these things could affect the value of the land.

After determining if the property meets your needs we negotiate the final price for you. We then file the new deed with the county where minerals are located and help transfer the new owner information with the oil company so you can begin receiving your checks. You then pay us a 5% to 10% commission (in this example 5k) for the work we have done. 

As with any real estate you can sell your rights at any time. The future value of those rights is determined by how much oil and gas is still waiting to be drilled. 

After learning about your specific goals and objectives, we search for and find oil and gas opportunities that meet your needs. Whether you’re searching for a quick return on your investment, or long term supplimental monthly “mail box money”, we partner together to find the best options to meet your needs. We then perform due diligence to identify potential red flags that might exist before you buy your minerals. Once the property has been purchased we charge you a 5% to 10% commission for our services. So if you bough the minerals for $30k you pay us 3k. The oil and gas industry is complex and having someone to help you navigate it is cruciel.  

We target a 20% -30% yearly Return on Investment (ROI) for our partners. 

*any investment involves a certian level of risk. Future returns are not guarenteed.

Besides our property acquisition services we also can provide a variety of consultation services such as;

• you’ve found, what you think, is a great mineral rights purchase. We can help you with due diligence to identify factiors ( both positive and negative) that may affect the performance of your oil and gas royalties. 
• negotiating the terms of your oil and gas lease. 
• Consulting on issues you might be having with your current minerals or royalties.  

We charge $250 an hour for our consulting services. 

How long does it take for me to make back my initial  investment? This varies depending on oil prices and how much production your wells have. We target a return on investment (ROI) is 20% to 30% yearly or, in other words, if you invest $50k you would get your money back in just over 3 to 4 years AND still have your property to sell or just continue to get your monthly “mailbox money”.

How long do monthly royalties last? This is dependent upon how much oil and gas there is to be recovered. Oil wells often last 50 years or more.

Can I sell my rights? As with any real estate property you may sell your rights at any time.  We can help you with that as well. Our network of investors is always looking for properties to purchase. 

How long does it take for me to get my fist monthly check? Typically 90 days. The minerals pulled out of the ground need to be gathered, transported and sold. The oil company then writes checks based on those sales.

Do I have to pay taxes on my royalties? Yes. The royalties are considered income and you have to pay income tax on your earnings.

Do my mineral rights go up or down in value?  The amount of oil and gas coming from one well decreases over time. However, if your minerals are in a high production area additional wells are often drilled on your property. When this happens your royalties increase and the value of your property goes up.

How often do these purchase opportunities come up? When we find an opportunity we research the value of the deal. Most are discarded because we discover an issue or problem. Once we have vetted the deal then, and only then, will the opportunity be presented to our list of investment partners. This may occur several times a month or once a month depending on the market.

How much do I need to invest? Producing mineral interests are sold from a few thousand dollars to millions. Most of our investors ask us to find properties in the 20k to 200k range.

It all sounds great, are the profits guaranteed? No. As with any investment there is a degree of risk. Our job is to help mitigate risk, but risk can never be eliminated.