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How long will it take to get my money, if I decide to sell?
Answer: Within 30 days.
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What will it cost me to do this deal with you?
Answer: Nothing!
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What is the first step I must make to get the deal started?
Answer: Give us as much information as you have. We will find the rest of the information from public
records.
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What paperwork is required?
Answer: A Purchase Agreement, and then a Deed shortly thereafter, both will be prepared by Pilgrim
Energy.
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Who will do the paperwork?
Answer: Pilgrim Energy will do all the paperwork, and you will receive a bank cashier's check in
payment for your interest.
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What is Estate Management?
Answer: Royalty income to an estate creates additional costs to the estate in terms of payment of
management fees, executor fees, paperwork, taxes, etc. These costs leave less money in the estate for
the heirs, and increase the burden of work on the Executor. Every time the asset is divided, as when
heirs each acquire a percentage of the asset, the paperwork and accounting costs multiply. Whereas,
one cash payment can be easily divided among the heirs, with a minimum of costs and paperwork.
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Why do my royalty checks vary?
Answer: Production from the well can vary. (The operator may not have enough buyers or may not be
able to transport the gas from the well to the market.) The price of oil/gas can vary. (Look at the
downward price trend from November 2008 until your latest royalty check. Demand for oil/gas can vary.
(Mild winter weather or economic downturn.)
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Maximize My Income
Keeping tract of royalty interests and income can be a burden, especially for small owners. Tax
consultants who are not in the oil and gas business and not familiar with rules regarding accounting for
such income may not be taking advantage of such things as cost or percentage depletion.
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With our experience in the gas/oil business, and with the financial resources we have available, we have
a voice, which producers hear. We can demand accountability for the producers.
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What other sources of information are there which I may use to evaluate my ownership?
Answer: To get a history of production volumes look at your old check stubs, or contact your producer
to request a revenue history.
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Many on-line services include charts depicting the historical prices for oil and gas over time. To see
such charts use your favorite on-line search engine and enter a search for “natural gas prices charts.”
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These charts will help you understand the trends for prices, and may help you predict to some degree
the likely future prices for oil and gas.
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To understand the likely future life span of the relevant oil/gas well, you may have to retain a petroleum
engineer or geologist who is familiar with the nature of the oil/gas reservoir involved. This information
will help you predict the number of months or years you can expect to continue to receive your royalty
check.
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Your state’s regulatory agency may offer helpful confirmation in this regard, and there are also on-line
sites which describe the various oil/gas reservoirs in each state. For instance, the Kentucky Geological
Survey, and the U. S. Geological Survey have many helpful publications.
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Pilgrim Energy * Phone (606) 432-0330 * Toll Free (877) 713-1116 * Fax (606) 432-8009
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