Frequently Asked Questions
What’s the difference between Mineral Interests (MI), Royalty Interests (RI), Overriding Royalty Interests (ORRI), and Working Interest (WI)?
|Generates Revenue from Well Production||Y||Y||Y||Y|
|Owns the Underground Minerals||Y||Y||N||N|
|Ownership Continues after Production Stops||Y||Y||N||N|
|Collects Upfront Bonus Payments||Y||N||N||N|
|Has Rights to Executive Leases||Y||Y||N||N|
|Pays to Operate or Drill the Well||N||N||N||Y|
|Participates in the Lease Operating Expenses||N||N||N||Y|
|Has Significant Tax Advantages||N||N||N||Y|
(NPRI) Non-Participating Royalty Interests - Are Interest similar to ORRI's but typically not bound to a well or lease, they are typically bound to Minerals or Mineral Rights assigned by a land/mineral right owner conveying either a permanent royalty or temporary royalty off his or hers mineral rights and lands, typically NPRI do not have executive rights to bonuses but the NPRI owner is carried and bound by such leases that are executed by the true Mineral Rights Owner.
How Long is the entire Process to Sell My Oil & Gas Mineral or Royalty Interest(s)?
It typically takes several days to several weeks pending the information currently available and presented by the Seller. Some Royalty Companies string Sellers out for periods of 30-60+ Days, however we offer solutions that meet our timelines and work and fit within the guidelines and timelines of the Owners/Sellers?
- Production History - (Decline Curves and Water Rates) of the Field and/or Leases
- Operators Reputation - Some just get it done better than others.
- Reservoir Formation - Some Reservoirs have longer production histories than others
- Commodity Price Risk - Gas, Oil, or both - is it sour, treated, etc.
- Future Production and Development
- Interest Type - Royalty, Overriding Royalty, Mineral Rights/Interest, Non-Participating Royalty Interest, or Working Interest.
- Historical Cash Flows and Averages for: 12 months, 6 months, and 3 months.
- Tax Rates - Tax Rates for Purchase and Severance may be too high, low, or non-existent pending your state of where the interest is located, which affects a property's value and offer rate.
- Geographic Location and Basins - Some geographic locations and basins are preferred to others (For Example: The Permian Basin would score higher than the Gulf Coast Basin, which is known for potential water issues).
Our offers typically range 25 - 70 months (pending certain parameters). The information above allows us to calculate current reserves with a prediction of future reserves and cash flows. Our objective is to offer you fair market value while addressing risks and uncertainties that may be involved in future interests and commodities prices.
Follow the Example Below:
Net Acre(s): 11 Acres
Unit Size: 640 acres
Royalty: 20% or 1/5th 11 ac/640ac X .20 = .0034375 Royalty Interest.
Download our New Oil & Gas Royalty Calculator to find your decimal interest Click Here
UNI Royalties, Ltd.
P.O. Box 1959
Parker CO 80134
Or by Calling Phone:(720) 663-1187
Toll Free Phone: 1-888-916-0220
Toll Free Fax: 1-888-491-8525
The states highlighted in green are states in which UNI Royalties Ltd., is actively acquiring both oil and gas mineral rights and royalties.
Other Helpful Definitions and Information
Oil and Gas Glossary
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.
A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive; a well drilled in a proven field for the purpose of completing the desired spacing pattern of production.
An exploratory well that encounters a previously untapped oil or gas deposit.
Any exploratory or development well that does not find commercial quantities of hydrocarbons.
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%).
A well into an area where petroleum has not been previously found or one targeted for formations above or below known reservoirs.
The surface area above one or more underground petroleum pools sharing the same or related infrastructure.
Pipe, usually buried, through which oil or gas travels from the well to a processing facility.
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 below 28 degrees API.
Wells drilled between established producing wells on a lease in order to increase production from the reservoir.
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.
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.
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.
A deposit of sand saturated with bitumen.
The company or individual responsible for managing an exploration, development or production operation.
A naturally occurring mixture composed predominantly of hydrocarbons in the gaseous, liquid or solid phase.
A natural underground reservoir containing an accumulation of petroleum.
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.
The production of oil and gas from reservoirs using the natural energy available in the reservoirs and pumping techniques.
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.
A compacted sedimentary rock composed mainly of quartz or feldspar; a common rock in which oil, natural gas and/or water accumulate.
The extraction of additional crude oil, natural gas and related substances from reservoirs through pressure maintenance techniques such as water flooding and gas injection.
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.
Refers to studies done to gather and record patterns of induced shock wave reflections from underground layers of rock which are used to create detailed models of the underlying geological structure.
Rock formed from clay.
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.
Natural gas at the wellhead may contain hydrogen 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.
Industry activities often affect surrounding areas and populations. People with 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.
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.
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.
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.
A mass of porous, permeable rock - sealed on top and both sides by non-porous, impermeable rock - that halts the migration of oil and gas, causing them to accumulate.
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.
The process of converting heavy oil or bitumen into synthetic crude oil.
The resistance to flow, or "stickiness" or a fluid.
A well drilled in an area where no oil or gas production exists.