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Permalink Reply by Jim Litwinowicz on February 17, 2012 at 9:40pm

Usually its best not to sell any portion of your rights as they are much more valuable over the years. But sometimes it is necessary for some people. Divorce, health, estate issues, heavy debt load, even a great business opportunity. If you decide to do so get lots of various offers. 

The fact it is leased will devalue it somewhat and the terms of the lease will be important.  Things like the term length, royalty rate and calculations, Pugh clause, depth severance clauses, and a commitment to drill at least one horizontal well. A smart buyer will evaluate all these and more.

Good luck!

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