Frequently Asked Questions
1. Why would I want to sell my oil royalty or sell my gas royalty?
Reasons to sell include -
• To obtain immediate cash to cover expenses such as college tuition for a child or grandchild, or even medical bills
• To convert your royalty to cash, which helps avoid the cost of probate for your heirs.
2. Why would I want to do business with you?
We are a small business and can give personal attention to your request while providing you with the benefit of our many
years' experience in the oil and gas field.
3. How do you decide upon a value for my property?
We provide you with an engineered valuation for your interest based on past performance and future projections of
• production from the well,
• current oil and gas prices, and
• your ownership percentage.
4. Is there a best time to sell my mineral rights?
A good time to sell is whenever you want a lump sum cash payment instead of waiting for periodic checks.
5. Does it cost me anything to sell my oil and gas rights or sell my mineral rights?
No, we prepare the documents and pay all recording fees.
6. How long does it take me to get my money?
Upon receipt of your signed documents and confirmation of your interest, we would immediately send you a check for the agreed amount.
7. What if my mineral rights are leased, but not producing?
We have purchased non-producing minerals; however, we do not "lease" mineral rights from landowners.
8. How do you come up with a value for my property?
The following are factors we consider when valuing your oil and gas mineral rights, or valuing oil royalties and overriding royalty interests.
• Historical production performance
• Current and future oil and gas prices
• Decline rate of the well
• Age of equipment
To determine the value of an interest we look at the oil and gas reservoir.
Every well has a petroleum decline rate and from this information we determine how many months of production are left.
The value is then determined through the use of decline curve analysis and the current oil and gas prices as well as future oil and gas prices.
We can establish a fair and equitable value for your oil and gas royalty or mineral interest.
9. In which states do you currently buy oil and gas leases, or buy other mineral interests?
Fox Head currently buys oil and gas interests in the following states:
• Arkansas
• Kansas
• Nebraska
• North Dakota
• Oklahoma
• Texas
• Wyoming