Call Us: (432) 687-4812
Commonly Asked Questions
Once I agree to a price am I bound by our verbal agreement? No, you can back out of our mutual verbal agreement at anytime up until you sign and notarize a mutually acceptable agreement which we provide and record at no cost to you.
How do you formulate your offer amount? Statewide uses various processes to come up with your offer amount. Prior to sending our offers, we have an outside engineering firm evaluate each and every property by using historical production records as well as decline curve analysis to determine your properties total reserves. We then use pricing based on NYMEX futures to determine the value of those reserves. Our offers can very from 40 months of your current monthly revenues to sometimes as high as 100 months of your current monthly revenues. The performance of your property, quality of the oil or gas, decline rates, future potential and location of your property are all determining factors in whether or not you receive a high or low monthly multiple.
What kind of cost and expenses will I accrue if I were to sell? None, unless, of course you choose to use outside professional advice such as an engineer or a lawyer. Statewide will be responsible for all associated costs including filing and recording fees, agreement generation, engineering and due diligence including title verification and curative..
What are oil and gas prices going to do in the future? We don't know and neither does anybody else. We can tell you that many factors do affect prices including geo-political unrest, government interference, weather, supply and demand problems among a host of other factors. We can also tell you with some certainty what oil and gas has done in the past. With energy prices at historic highs, this is an opportunistic time to convert a royalty interest into one cash payment.
Why would you want my property when you just gave me all those reasons to sell? Example: a depleting asset? Statewide Minerals Co. is what you call an aggregator or collector of various producing oil and gas royalty interest. Some of these properties are big but most are very small. Some of these properties perform poorly and some perform well. The purpose of our buying these properties is that we have found that buying in volume or acquiring many properties at a time, whether it's during bad times or good, will hopefully produce a return similar to a mutual fund or other return investments. Usually the seller of a property only has a handful of these properties that are often times located in one specific area. This, often times, does not allow for much future upside in a depleting asset or as its commonly known as "serendipity". Our diversification of properties allows for better performance over the long run that single, centrally located properties cannot provide.
Do you have any partners or investors? No, other than doing business with other intermediate family members, we have no outside investors or partners. Statewide Minerals has been a family owned business since 1996. Part of the reason Statewide has been able to exist in good times and bad is the philosophy of buying and holding without diluting our interest. We hope we can continue doing business in this matter for years to come.
I'm paying taxes on my property but I'm not receiving any income. What do I do? There could be several reasons for your dilemma. 1) Your property could have stopped producing oil or gas but the county is still charging you for a value. We cannot promise results, but it would be a good idea to inform your county tax assessor if this is indeed the case and instruct them to lower or terminate your tax burden due to terminated oil and gas production on your property. 2) Your property could be in suspense. Many times a disburser will place an interest owner's payment in suspense if they do not have a proper address or an unsigned division order, unbenounced to the interest owner. Please call the disburser's division order department to clear up these problems if you find that this is the reason. 3) You might not be receiving much income. Many companies will hold your revenue in suspense until a check will reach $50 or even $100, or disburse your income once a year whichever comes first. Once again, a call to the disbursing company should clear this up.
How do I get an offer or re-evaluation? It's easy, please go to the "How to receive an offer" section of this web site and follow the instructions or call us at 1-800-554-1884 and we will answer all of your questions you might have, or go to the "Offer Request" page of our web site and fill out the questionnaire. Remember we can answer any question you might have an it is all at no charge to you.
How do you formulate your offer amount? Statewide uses various processes to come up with your offer amount. Prior to sending our offers, we have an outside engineering firm evaluate each and every property by using historical production records as well as decline curve analysis to determine your properties total reserves. We then use pricing based on NYMEX futures to determine the value of those reserves. Our offers can very from 40 months of your current monthly revenues to sometimes as high as 100 months of your current monthly revenues. The performance of your property, quality of the oil or gas, decline rates, future potential and location of your property are all determining factors in whether or not you receive a high or low monthly multiple.
What kind of cost and expenses will I accrue if I were to sell? None, unless, of course you choose to use outside professional advice such as an engineer or a lawyer. Statewide will be responsible for all associated costs including filing and recording fees, agreement generation, engineering and due diligence including title verification and curative..
What are oil and gas prices going to do in the future? We don't know and neither does anybody else. We can tell you that many factors do affect prices including geo-political unrest, government interference, weather, supply and demand problems among a host of other factors. We can also tell you with some certainty what oil and gas has done in the past. With energy prices at historic highs, this is an opportunistic time to convert a royalty interest into one cash payment.
Why would you want my property when you just gave me all those reasons to sell? Example: a depleting asset? Statewide Minerals Co. is what you call an aggregator or collector of various producing oil and gas royalty interest. Some of these properties are big but most are very small. Some of these properties perform poorly and some perform well. The purpose of our buying these properties is that we have found that buying in volume or acquiring many properties at a time, whether it's during bad times or good, will hopefully produce a return similar to a mutual fund or other return investments. Usually the seller of a property only has a handful of these properties that are often times located in one specific area. This, often times, does not allow for much future upside in a depleting asset or as its commonly known as "serendipity". Our diversification of properties allows for better performance over the long run that single, centrally located properties cannot provide.
Do you have any partners or investors? No, other than doing business with other intermediate family members, we have no outside investors or partners. Statewide Minerals has been a family owned business since 1996. Part of the reason Statewide has been able to exist in good times and bad is the philosophy of buying and holding without diluting our interest. We hope we can continue doing business in this matter for years to come.
I'm paying taxes on my property but I'm not receiving any income. What do I do? There could be several reasons for your dilemma. 1) Your property could have stopped producing oil or gas but the county is still charging you for a value. We cannot promise results, but it would be a good idea to inform your county tax assessor if this is indeed the case and instruct them to lower or terminate your tax burden due to terminated oil and gas production on your property. 2) Your property could be in suspense. Many times a disburser will place an interest owner's payment in suspense if they do not have a proper address or an unsigned division order, unbenounced to the interest owner. Please call the disburser's division order department to clear up these problems if you find that this is the reason. 3) You might not be receiving much income. Many companies will hold your revenue in suspense until a check will reach $50 or even $100, or disburse your income once a year whichever comes first. Once again, a call to the disbursing company should clear this up.
How do I get an offer or re-evaluation? It's easy, please go to the "How to receive an offer" section of this web site and follow the instructions or call us at 1-800-554-1884 and we will answer all of your questions you might have, or go to the "Offer Request" page of our web site and fill out the questionnaire. Remember we can answer any question you might have an it is all at no charge to you.