FAQs

What exactly are Oil & Gas Royalties, and how do they work within the Oil-Royalties.com Marketplace?

Oil and gas royalties represent an ownership interest in a portion of the revenue generated from the production and sale of crude oil or natural gas. As a royalty owner, you receive a percentage of the gross production from a well, without incurring any operational costs, drilling expenses, or liabilities. This provides a passive income stream directly tied to energy production from a specific property. At Oil-Royalties.com, we connect you with these cash-flowing royalty interests, enabling you to browse, offer, and acquire them efficiently through our streamlined marketplace environment. Learn more about Oil and Gas Royalties in this in-depth blog post from our parent website PRODUITS DE L’EQUIPE LLC: (link).

What types of Oil & Gas Royalty Interests are available on the Oil-Royalties.com Marketplace?

Oil-Royalties.com focuses on the direct acquisition of low-risk oil and gas royalty interests that generate immediate cash flows. This includes Royalty Interests (RI), which are common non-cost-bearing interests, and Overriding Royalty Interests (ORRI), which are carved out from a working interest. Our parent company, PRODUITS DE L’EQUIPE LLC also acquires Proved Developed Producing (PDP) assets (link) with existing production — all backed by proven reserves (link) for enhanced investment security — which offers additional insights for evaluating oil and gas royalties.

Are there risks associated with investing in Oil Royalties, and how does Oil-Royalties.com mitigate them?

While oil royalty investments can offer predictable returns, it's important to understand the inherent risks, primarily related to commodity price fluctuations and natural production decline. Oil-Royalties.com mitigates these risks through our rigorous due diligence, focusing on well redundancy among Proved Developed Producing (PDP) assets (link) with established production histories, and leveraging our sophisticated analytical tools and algorithms to assess long-term viability. Our strategy aims to maximize asset performance while minimizing operational and market volatility risks for our investors.

How does Oil-Royalties.com value Oil & Gas Royalty assets for acquisition?

Our proprietary valuation framework is central to our successful oil and gas royalty acquisition strategy. We thoroughly evaluate each opportunity based on critical factors such as reserve certainty (link), production redundancy, modest decline curve profiles, stable production history, consistent cash flow, and asset longevity. This data-driven approach, powered by our Cash-Flow Model (CFM)(link) and Max-Bid Value Algorithm (link), ensures we identify high-value, low-risk oil royalty investments that align with investors' objectives.

Why is the approach Oil-Royalties.com adopts to Oil Royalty investments unique in the Marketplace?

Our unique advantage in the oil royalty investment space stems from our blend of deep industry expertise, strategic global presence (North America and the Middle East), and advanced proprietary tools, all integrated into a seamless marketplace experience. Our Cash-Flow Model (CFM)(link) provides GAAP-compliant forecasting for oil and gas royalty income, while our Max-Bid Value Algorithm (link) offers balanced valuation guidance and risk management. These tools enable fast, data-driven decisions and accurate asset valuation, giving our investors a strategic edge in the acquisition of oil and gas assets.

What are the key benefits of investing in Oil Royalties within Oil-Royalties.com Marketplace?

Investing in oil royalties with the Oil-Royalties.com Marketplace offers several compelling advantages, including predictable returns from established production, a passive income stream free from operational costs, and potential for portfolio diversification within the energy sector. We leverage our proprietary analytics and disciplined due diligence to identify secure, cash-flowing assets, providing qualified investors with exposure to the robust USA energy market directly through our streamlined online platform.