You can add cash flow to yourself now if you want

Texas Mineral Rights DeWitt County, TX
1

You can add cash flow to from your minerals if you want. there is a way. I have a new idea.

2

What's your idea?

3

Jon,

You can sell part or all of your minerals now and invest in a pool of mineral rights that generates quarterly cash distributions.

if you sell your mineral rights to the pool you won't loose out on the income from your minerals. Granted you won't get all the income from your minerals but you will receive a quarterly check from the pool forever, or until you choose to cash out of the pool.

Whatever price you get from the pool for your minerals, you can turn around and invest in the pool, or keep some cash and invest part of the proceeds into the pool. The cash value of your investment can be recovered when you sell your interest in the pool. But you can receive cash flow every quarter until you decide to sell.

This does two things. 1) It reduces the drilling risk that a well on your minerals will be a dry hole, 2) it evens out your income for life if you like. I am sure you realize that wells come on strong and then deplete rapidly. your income from a new well, if any, will be largest at the beginning of the life of the well and rapidly decline over 2 years and start declining less over the next few years on a hyperbolic curve.

I have thought all of this through but it is to lengthy to explain in a single reply.

David Swantner

David

4

Before considering selling any minerals you would be wise to consult an oil and gas attorney.

5

My brother in law just sold his minerals without an attorney and got top dollar in 30 days for MW La Salle. He is a little older and wanted the money now. Honest brokers / buyers are out there. You just have to find them. It took him 6 months but it was worth the hunt.

John Crockett said:

Before considering selling any minerals you would be wise to consult an oil and gas attorney.