What We Do?
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We purchase the income from undivided oil and gas royalty interests. We pay the fair present value based on the amount of monthly income the royalty owner is receiving.
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What is an Undivided Oil and Gas Royalty Interest?
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An oil and gas royalty interest is created when the owner of the oil and gas property leases the oil and gas to a producer. This lease document usually includes a one-eighth (1/8th) royalty from the production of the oil and gas. When the oil and gas royalty interest is created, it is usually owned by one owner. The owner then receives the one-eighth (1/8th) royalty until his/her death. If the oil and gas wells continue to produce after the death of the original property owner, the royalty goes to the owner's heirs.
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After many years, the oil and gas royalty interest can be split between many, many people, from several different generations. These interests are then considered "undivided interests." The division of these undivided oil and gas interests may be so small that they have almost no value. When gas or oil is no longer produced from the wells and the lease is terminated, the oil and gas has no value to the undivided owners because they are so numerous.
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Why we purchase the income from undivided oil
and gas royalty interests at fair present values
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Pilgrim Energy * Phone (606) 432-0330 * Toll Free (877) 713-1116 * Fax (606) 432-8009
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