Should I Drill, Pool or Sell my Interests?
If you have working interests or investments in oil wells, you have the choice of drilling, pooling or selling your interests. Your best decision is affected by several factors which you will have to take into consideration. Deciding when to drill, pool or sell will depend solely on your individual case.
When to drill
Your decision to drill will depend on the type of reserves you have interests in. If the wells look promising when it comes to long-term returns, you might decide to stay put. It would be best to hire an expert in the field to guide you through this decision.
Companies like MAJR Resources have experts with the skill and expertise to give you the best advice. A survey of the area will be conducted to assess the mineral reserves. If it is worth drilling, then you also need to know the best place to start drilling. The qualified person will be able to help you with this as well.
As a part owner in the interest, you will need to share the cost of the setup for drilling. Do a full assessment of the cost involved versus the profits you can earn before you make your decision to drill. If you are not fully experienced in how the oil industry works, then it would be best to consult with someone who is qualified to help you with all the various aspects.
When to pool
If your land or interests is part of a larger underground reservoir and your neighboring properties are also drilling the same reserve, you might consider pooling your interests. Having the option to voluntarily pool your interests works well for you. In many states, you could be forced to pool your interests whether you like it or not. Pooling is generally considered when the reserves extend over properties owned by various landowners. Once again, it is best to hire an expert to help you weigh the pros and cons of pooling.
When to sell
Your decision to sell would rest largely with the quality of the wells and the costs involved in drilling. If the well looks like it will run dry in a few years, it might not be a good idea to invest in drilling. Also, if you find the cost of drilling more than what you can expect in return from the oil, then selling might be a better option.
A thorough study of the oil reserves and a calculation of all the costs involved will help you decide whether selling is the best option for you. Seek help before you make any decision so that it is one you won’t regret in the future.
MAJR Resources provides research and landman services tailor-made for the clients’ requirements. If you require an assessment of your interests, MAJR Resources will be able to provide you with all the assistance you need. The team of experts has the required skills to survey your property and give you an accurate report on what you can expect if you drill, whether it is a good idea to pool or whether you are better off selling.