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Risks include the possibility that the lease may never produce or that market conditions could change. Just remember, in the oil and gas game, there are no guarantees, so keep your eyes wide open!
The right to pool means that different leases can be combined to maximize oil or gas production. It’s like putting all your eggs in one basket to make sure you’re getting the most out of your resources.
Reserves refer to the estimated amounts of oil or gas that can be produced in the future. Think of reserves as the treasure trove that holds the promise of riches down the line!
Absolutely! A single lease can have several overriding royalty interests. It’s not uncommon for multiple people to have a claim on the potential earnings from the same piece of land.
producing ORRI means it doesn't currently generate any income because there isn't any oil or gas being pumped from the lease. It's like having a ticket to a concert that doesn't happen!
An overriding royalty interest is basically a share of the profits from oil and gas production that is taken off the top. Think of it as a slice of the pie that comes straight from the well before any costs are deducted.