Individuals

Russell T. Rudy Energy, LLC has been serving oil, gas and mineral investors for three generations.  During that time we have earned a reputation for integrity, expertise and service to our clients.  Please read on to learn why selling your oil, gas or mineral interests to us might make sense in your situation.

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Why should I consider selling my oil, gas or mineral interest?

A sound investment strategy involves effective risk management.  Most investors are familiar with managing the risks involved with financial instruments such as stocks, bonds and mutual funds.  Information is readily available and brokers, advisors, and money managers abound.  The problem is not a lack of resources, but rather determining which ones to use.

On the other hand, effectively managing oil, gas and mineral interests and their unique risks often requires time and expertise that some investors don’t have.  Issues confronting these interest owners include:

Price Risk.
Increases in supply or decreases in demand can depress oil and gas prices.  Conversely, shortages can make prices volatile in the opposite direction.  Prices can be dramatically affected by:

  • Macroeconomic  trends.  A booming economy can increase demand and a recession can depress it.
  • Geopolitics.  A war in the Middle East can increase prices in the short term, while adverse government legislation can have the opposite effect.
  • Technological Advances.  Horizontal drilling, fracking, and deep water technologies have all affected supply and in turn prices.
  • Weather.  Warm winters can depress prices, but unexpectedly cold or long ones have the opposite effect.

 

Production Risk.
Any time you are dealing with a resource that can be miles below the surface of the earth, uncertainty, and consequently risk, play a major role.  When production on a property decreases, the revenue stream to the interest owner decreases as well.  Production risks can include:

  • Reservoir Risk.  In spite of impressive advances in technology such as 3-D seismic, data reprocessing, and more sophisticated reservoir modeling, the size and shape of a reservoir is never certain.
  • Price impact on recoverable reserves.  Even if the specific dimension of a reservoir were known with certainty, the volume of physical reserves which are economically recoverable depends on price projections, thereby further complicating evaluation of reserves at any given time.
  • Natural disasters.  If the pipeline servicing your area is disrupted by earthquake, leaks, or flooding, your property could lose access to the market and consequently production would temporarily cease.  Frost heave or hydrate formation can also disrupt pipeline operations.  Lightning can destroy compression or other processing facilities, thereby causing lost production.
  • Operator Risk.  The operator of a producing property is expected to act in a prudent manner.  This means he should operate in the best technical and financial interest of the royalty and working interest owners.  Production can be compromised by ill-advised or poorly executed operating decisions, which in turn adversely affect all owners.

Working interest owners (those who share in both revenues and operating and capital expenses) are even more exposed to operator risk.  These owners have to assume that the operator is charging their property only for direct and overhead expenses which benefit them, and not other operations in the area.  Evaluating the operator’s proposals beforehand and determining their validity after the fact, requires engineering and accounting expertise that many interest owners might not have.

 

Other Considerations
Unique factors associated with estate planning, settlement and trust administration might make selling your oil, gas and mineral interests to Russell T. Rudy Energy, LLC even more appealing.  Further details regarding these situations can be found on our website, http://www.russelltrudyenergy.com/blog/.

 

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Why should I sell my oil, gas or mineral interest to Russell T. Rudy Energy, LLC?

Throughout the years of our service to energy investors, we have earned a reputation for integrity, expertise and service.  We have learned that a deal is only a good one if both parties benefit.  We have become synonymous with fairness and that has enabled us to prosper.  In fact, many of our clients have become repeat customers, and advocates within the energy investment community.

In the course of our operations we have dealt with almost every conceivable type of domestic oil gas and mineral interest.  Our experience includes:

  • Texas producing overriding royalties
  • Non-producing Oklahoma minerals
  • California production payments
  • Kansas royalties
  • Working interests

We have experience in dealing with practically any type, kind or size of oil and gas interests.  Consequently we are able to make a quick and fair offer and take the full responsibility for all aspects of the transfer of interests.

To get your offer, please contact us:

5701 Woodway Drive
Suite 346
Houston, TX 77057

Fax: (713) 784-9735

e-mail:  info@oilandgasminerals.com

or just give us a call:

Phone:
Nationwide Toll-Free – (800) 880-0940
Houston – (713) 961-4205