Absolutely, investing in oil and gas comes with risks like market fluctuations, environmental concerns, and the possibility of not hitting any oil or gas.
Before reserving an overriding royalty interest, think about the potential production of the property, the lease terms, and the market for oil and gas.
Yes, you can sell your partial interest, but it’s important to find a buyer who understands the ins and outs of oil and gas leases.
Having a partial interest means you’ll have a say in decisions regarding the production, but only to the extent of your ownership percentage.
Reserving an overriding royalty interest means that you get a share of the profits from the oil and gas produced, even if you don’t own the land or lease yourself.
A partial interest in an oil and gas lease means that you own only a part of the rights to explore and extract oil and gas from a certain property.