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What Are Extended Reach Wells?

In order for oil and gas reserves to reach the market, minerals rights are leased to oil companies through a legally binding contract. At times, mineral rights leasing might include the drilling of an extended reach well. This could be beneficial to the land owner because less surface drilling space is used, smaller holes mean generating less waste, less noise and extended reach wells are kinder to the eco-system.

While there is still a lot of flexibility regarding the definition of an extended reach well, the most commonly accepted term is that the horizontal depth must be twice the length of the vertical depth (2:1). Another acceptable definition is a well that exceeds 4500 feet in length. An extended reach well c

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Selling Your Oil and Gas Mineral Rights

Finding out if your property’s mineral rights belong to you is the first step to selling this interest. If the surface rights have been separated from the mineral rights, you may not be the owner of both. Deeds, which are public record, can be obtained from your county recorder’s office, and will indicate to whom the mineral rights belong. This is also a great point to start tracking data on these rights, crucial information to attract and inform potential buyers.   Value Knowing the market for oil and gas mineral interest will be helpful in setting a selling price. You can begin by checking the New York Mercantile Exchange for current pricing of these commodities. However, asking price for minera
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Buy and Selling Mineral Rights

What are Your Options?

Fortunately, there are a lot of options available when it comes to buying and/or selling your mineral rights, to guarantee you get the best deal. For the pasts ten years, our team of experts at Gallatin have assisted countless mineral owners experience their ultimate success in the purchase and/or sale of their mineral rights. Both the buying and selling of mineral rights can be financially advantageous, yet risky and highly complex, which is why we take great care when it comes to understanding every step of the way, including the option of whether or not to buy or sell those rights in the first place.   When it comes to purchasing mineral righ
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The Permian Basin

Along with the excitement of a new year, comes great news for the Permian Basin. On Tuesday, January 17, 2017: Exxon Mobil announced that they had paid “$5.6 billion in stock to acquire companies owned by Texas' Bass family that control parts of the Permian in New Mexico. The purchase roughly doubles Exxon's holdings in the basin, adding acreage with an estimated 3.4 billion barrels of oil equivalent.” The article on yahoo.news, goes on to say, “The deal is the largest oil and gas acquisition in the United States since crude prices crashed in November
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