Why don’t the oil companies just buy their own leases?
They do. The oil companies buy leases all the time. We are often in competition with other bidders for the same leases. The big guys can spend more money and buy bigger leases than we can but we can often get there first by nominating leases for sale plus we can often buy smaller parcels that the big guys overlook.

Can I personally bid on a lease?
Yes, but if you do not know what you are doing it is best to leave it to those that do. There are leases you will not want. There are no guarantees on any lease. So, we try to take as much guess work out of the process as possible and get the best leases we can. We can also look at the geology of an area and decide if the lease is in a good prospect area or not.

Can I use the lease for anything I want?
No. The oil and gas leases are for exploration for hydrocarbons (oil and gas). The leases are for public land and you are just leasing it for exploration. You cannot use the surface except for access to a drilling site and the development of a drill pad for a drilling rig. You can improve the surface for these purposes only.

How long are the leases?
Federal leases are 10 years with yearly rental fees of $1.50 for the first five years and $2.00 per acre for the second five years commencing on the first anniversary of the date the lease was issued. Once production starts the future rental fees are paid from production and the lease is good as long as the well on the lease is producing and covering the rental payments. The State leases are good for five years with nominal per acre yearly rental fees. All maintenance fees are your responsibility. There are no extensions on the leases unless they are in commercial production and then they are good for the term of the production.

Do you take any of the royalties?
No. You receive all the returns from the royalties from your leases. We do not take any part of your royalty payments. Our service is in acquiring the leases for you and servicing the leases for possible sale or drilling activity. We get paid when we get you a good lease.

Are there any taxes on the leases?
Not taxes as such but rental fees as mentioned above.

What other obligations do I have?
None beyond the upfront lease acquisition fee and the yearly rental fee which stops when there is a producing well on the lease. We help negotiate the agreements with a drilling company and managing the leases for you at no further costs to you.

What are my tax consequences?
We do not offer any tax or legal advice. However, you may have some tax deductions for expenses and you may have an oil depletion allowance from production income. Please consult with your tax and legal counsel for any tax consequences in your situation.

Do you offer any guarantees?
Yes. We guarantee we will use our best efforts to get you the most favorable lease(s) based on the availability, funding and competition at auction.

Do you stay in the deal to help?
Yes. We hold the lease title for you and as your representative we will receive any inquiries from oil companies interested in the lease. We will communicate any and all offers to you and help you negotiate the best deal for you. We do not charge a fee for this additional service.

What are your privacy policies?
We hold all client matters in the strictest of confidence. We will not divulge any information about you to anyone unless directed by a Court Order.

What are my chances of making money?
Holding a good oil and gas lease has made a lot of people very wealthy. Our unique program gives you that opportunity. The key is acquiring good leases and we will do everything we can to assist you in this regard.

Do I make money when you find a drilling company?
Normally, Yes. A drilling company usually pays an upfront fee or bonus to drill on your lease. This money is all yours. We do not take any part of drilling bonuses or royalties paid. We will help negotiate the bonus payment along with a royalty payment as part of our service to you.

Are there still oil and gas opportunities in the U.S.?
Absolutely! The U. S. has many oil and gas opportunities yet to be discovered. We believe the Western U. S. especially has many exciting oil and gas prospects in states that have already proven that they have great oil and gas potential. That is why we will concentrate our efforts for you in the Western U.S. and in the states we believe hold some of the best opportunities.

Can I buy more leases any time I want to?
Yes. You can join our team and buy leases on a continuing basis. We will buy the best leases for you at the auctions based on our best efforts given our knowledge of the area, the available funds and prices being bid at that time. The more you buy and the more you diversify the better your chances of success.