Oil & Gas Royalties
Oil & GasRoyalties
CP Royalties is a oil and gas royalty buyer that strives to always ensure that you’re receiving fair market price and that you get the best possible deal when you’re selling your oil and natural gas royalties. We are committed to being fair, transparent and thorough in our process and pay max value to owners wishing to sell their royalties. Our customer service team will painlessly guide you through every step of the process, and have answers to any questions that may arise for you. We know that the process can seem intimidating to first-time sellers, so our goal as oil and gas royalty buyers is to be as straightforward as possible.
Through our combined 25+ years of experience as oil and gas royalty buyers, we have developed prime royalty acquisition abilities, allowing us to assess royalty holdings and close max-value transactions in mere days.
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Oil and Gas royalties refer to money received from the production of oil or gas. Oil and gas royalties are also the cash value paid by an oil and gas operator (“Lessee”) to a royalty owner (“Lessor”) or to one who has acquired possession of royalty rights. The royalty payments are based on a percentage of gross production from the producing wells associated with the property. Typically, the lease between the Lessor and the Lessee will determine if the royalty payments made to the Lessor are free and clear of all costs (“gross royalty”) or after post production costs such as marketing and transportation have been deducted (“net royalty”).
Mineral Rights or full Mineral Interest typically include the right to negotiate lease terms and collect lease payment (“executive rights”) as well as the right to receive royalties as defined in the lease (“royalty interest”). In some cases, all or a portion of the royalty interest may have been sold in the past leaving one owner to own the executive rights and another to own the rights to the royalty interest only with no leasing rights (“non-participating royalty interest”).
An overriding royalty interest is the right to receive revenue from the production of oil and gas. The overriding royalty interest is carved out of the Lessee’s (operator’s) portion of the ownership (“working interest”) and allows the owner of the overriding royalty to collect their proportionate ownership of the production under a certain lease. Typically, an overriding royalty interest is limited in duration to the terms of an existing lease, but is not subject to any of the expenses of development or operations. An overriding royalty interest expires once the lease has expired or has terminated and production has stopped, whereas mineral and royalty owners maintain their ownership after a lease expires or production has stopped.