Attention: Oil & Gas Royalty Owners... Don't Fall Victim to Royalty Companies Scamming You out of Your Royalty Property, Read What the Latest Scams Are and How to Protect Yourself!
We have outlined and exposed the Biggest Scams that Royalty Companies use on unsuspected Royalty Owners
1. The Long Oil & Gas Royalty Tie Up - There is nothing worse than speaking to an owner who call our company saying, "I would like to sell my Oil & Gas Royalty Interest and I signed this agreement with this other company and now I can't get in touch with them and they don't return my phone calls", there is nothing worse than hearing this because after I have this person send me the agreement she signed it usually means: (the Royalty Company has tied up the property under a strict contract for an undetermined amount of time... like forever if they need it!
Why this Happens - Some Oil & Gas Royalty Companies are actually Brokers or they raise money from investors, or they raise capital contributions from Broker Dealers very similar if one were going to take a company public. What I mean is they are not doing it with in house funds they can cut a check for today.
Why is it so effective - This method works on Royalty Owners because typically these companies will pay a higher price and all the Royalty Owner is able to see are the Dollar $$$ that they believe will be coming soon, in fact, most of the Royalty Companies will tie you up for at least 60-75 days anyway unless they have in house funds to complete a project.
What Happens to the Cash - Part 2 of the Scam - The Second Phase of this Scam is what is the equivalent of "kicking someone while they're down", if you have been wrapped up with a Royalty Company for 4 or 5 months like a lady I spoke with some months back, "She was so tired of dealing with that company she finally gave in, so I ask her why, she replied, "I could ever go through this whole process again with another company?', "its bearing on my mind and I don't have the strength" that's how they get you... They truth is our company nor another company we would recommend would ever draw something out like that and then come back in and beat you over the head with your own shoe. It would be an entirely different story if the information she provided to the Royalty company was false and they came back to re-negotiate the purchase price, however this was not the case, they used shady agreements to exhaust her and it worked. Our company and affiliates are fast, efficient, and offer "Top Dollar for Oil & Gas Royalties".
Prevention - To prevent any of the above from happening to you, read the agreements before you sign them and if you do not fully understand the terms, conditions, or language, seek competent advice from a real professional (meaning an Oil & Gas Attorney or Mineral Rights Attorney that has an expertise in Oil & Gas or someone who has extensive experience in the Oil & Gas Industry and will agree to look over your Document and give you advice)
Good Advice to find a reputable oil & gas royalty company:
Find a reputable buyer that will offer a fair value for your property. The “keyword” is reputable buyer to buy your Oil & Gas Royalties or Royalty Properties. Many Royalty Companies generally have an elongated process to buying and try to tie up your property (as described above); or
perhaps put a shady instrument in front of you where you happen to sell
more of your oil & gas royalties than you had in mind, if that’s something your interested in then we unfortunately will not be able to help. However, if you’d like an easy means of liquidation or
help to find a reputable oil & gas royalty company that would
like to legitimately buy your oil & gas royalties for a fair market price then go here.
Oil and Gas Glossary & Terms
SCF - Standard Cubic foot
MCF - Thousand Cubic feet
MMCF - Million Cubic feet
BCF - Billion Cubic feet
MCFD - Thousand cubic feet (of gas) per day
MMCFD - Million cubic feet (of gas) per day
BO - Barrel of oil
BC - Barrel of Condensate
MMBO - Million barrels of oil
MMBC - Million barrels of condensate
BCFE - Billion cubic feet of gas equivalent (oil converted to gas by multiply by 6)
BOE - Barrel of oil equivalent (gas converted to oil by dividing by 6)
Common Oil and Gas Terminology
Conventional crude oil
Petroleum found in liquid form, flowing naturally or capable of being pumped without further processing or dilution.
Development well
A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphi
c horizon known to be productive; a well drilled in a proven field for the purpose of completing the desired spacing pattern of production.
Discovery well
An exploratory well that encounters a previously untapped oil or gas deposit.
Dry hole
Any exploratory or
development well that does not find commercial quantities of hydrocarbons.
Established reserves
The portion of the discovered resource base that is estimated to be recoverable using known technology under present and anticipated economic conditions. Includes proved plus a portion of probable (usually 50%).
Exploratory well
A well into an area where petroleum has not been previously found or one targeted for formations above or below known reservoirs.
Field
The surface area above one or more underground petroleum pools sharing the same or related infrastructure.
Flow line
Pipe, usually buried, through which oil or gas travels from the well to a processing fac
ility.
Flaring/Venting
The controlled burning (flare) or release (vent) of natural gas that can't be processed for sale or use because of technical or economic reasons.
Heavy crude oil
Oil with a gravity b
elow
28 degrees API.
Infill Drilling
Wells drilled between established producing wells on a lease in order to increase production from the reservoir.
Injectio
n
well
A well used for
injecting fluids (air, steam, water, natural gas, gas liquids,
surfactants, alkalines, polymers, etc.) into an underground formation for the purpose of increasing
recovery efficiency.
Lease
Legal document giving an operator the right to drill for or produce oil or gas; also, the land on which a lease has been obtained.
Light crude oil
Liquid petroleum which has a low density and flows freely at room temperature.
Medium Crude Oil
Liquid petroleum with a density between that of light and heavy crude oil.
Methane
The principal constituent of natural gas; the simplest hydrocarbon molecule, containing one carbon atom and four hydrogen atoms.
Natural gas liquids
Liquids obtained during natural gas production, including ethane, propane, butanes, and condensate.
Oil Sands
A deposit of sand saturated with bitumen.
Operator
The company or individual responsible for managing an exploration, development or production operation.
Petroleum
A naturally occurring mixture composed predominantly o
f hydrocarbons in the gaseous, liquid or solid phase.
Pool
A natural underground reservoir containing an accumulation of petroleum.
Porosity
The volume of spaces within rock that might contain oil and gas (like the amount of water a sponge can hold); the open or void space within rock -- usually expressed as a percentage of the total rock volume. Thus
porosity measures the capacity of the rock to hold natural gas, crude oil or water.
Primary Recovery
The production of oil and gas from reservoirs using the natural ene
rgy available in the reservoirs and pumping techniques.
Royalty
The owner's share of production or revenues retained by government or
freehold mineral rights holders. In natural gas operations, the royalty
is usually based on a percentage of the total production.
Sandstone
A compacted sedimentary rock co
mposed mainly of quartz or feldspar; a common rock in which oil, natural gas and/or water accumulate.
Secondary Recovery
The extraction of additional crude oil, natural gas and related substances from reservoirs through pressure maintenance techniques such as water flooding and gas injection.
Sedimentary basin
A geographical area, such as the Western Canada Sedimentary Basin, in which much of the rock is sedimentary (as opposed to igneous or metamorphic) and therefore likely to contain hydrocarbons.
Seismic studies
Refers to
studies done to gather and record patterns of induced shock wave reflections from underground layers of rock which are used to create d
etailed models of the underlying geological structure.
Shale
Rock formed from clay.
Solution Gas
Natural gas that is found with crude oil in underground reservoirs. When the oil comes to the surface, the gas expands and comes out of the solution.
Sour Gas
Natural gas at the wellhead may contain hy
drogen sulphide (H2S), a toxic compound. Natural gas that contains more
than 1 per cent of H2S is called sour gas. About 30 per cent of Canada's total natural gas production is sour, most of it found in Alberta and northeast British Columbia.
Stakeholders
Industry activities often affect surrounding areas and populations. People wit
h an interest in these activities are considered
stakeholders. They may include
nearby landowners, municipalities, Aboriginal communities, recreational
land users, other industries, environmental groups, governments and regulators.
Steam Injection
An improved recovery technique in which steam is injected into a reservoir to reduce the
viscosity of the crude oil.
Sweet oil and gas
Petroleum containing little or no hydrogen sulphide.
Synthetic Crude Oil
A mixture of hydrocarbons, similar to crude oil, derived by upgrading bitumen from oil sands.
Tertiary Recovery
The third major phase of crude oil recovery which involves using more sophisticated techniques, such as steam flooding or injection of chemicals, to increase recovery.
Tight Gas
Gas with very low flow rates. Found in sedimentary layers of rock that
are cemented together so tight that it "greatly
hinders" the extraction. Getting tight gas out usually
requires enhanced technology like "hydraulic
fracturing" where fluid is pumped into the ground to make it
more permeable. The National Energy Board estimates Canada could have
between 89 and 1500 trillion cubic feet (tcf) of tight gas, compared to total gas estimates (excluding tight gas) of 733 tcf.
Traps
A mass of porous, permeable rock - sealed on top and both side
s by non-porous, impermeable rock - that halts the migration of oil an
d gas, causing them to accumulate.
Ultimate potential
An estimate of recoverable reserves that will have been produced by the time all exploration and development activity is completed; includes production-to-date, remaining reserves, development of existing pools and new discoveries.
Undiscovered recoverable resources
Those resources estimated to be recoverable from accumulations believed to exist based on geological and geophysical evidence but not yet verified by drilling, testing or production.
Upgrading
The process of converting heavy oil or bitumen into synthetic crude oil.
Viscosity
The resistance to flow, or "stickiness" or a fluid.
Wildcat
A well drilled in an area where no oil or gas production exists. |