- The Oil & Gas business is inherently risky, from the risk of a dry hole, a minimal producing well, or a well never being drilled, to the extreme fluctuations in energy prices.
- Oil & Gas wells are depleting assets: it’s inevitable that all wells reduce their output over time and the monthly royalty payments from these wells diminish.
- By conveying your royalty, you are transferring the risk to the purchaser for a guaranteed lump sum payment.
- You may be in your golden years and want to enjoy your life, with minimum hassle, elimination of paperwork, and without gambling on well output or energy prices.
- You want to pay off vehicles, credit cards, mortgages, education or any other high interest debt.
- You would like extra cash to help out a family member, take a vacation, start the business you've always dreamed of or simply invest in a secure CD.
- There may be significant tax advantages when selling your royalty. You should consult a tax advisor to clearly understand your personal tax position.