FAQs

Frequently Asked Questions

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Frequently Asked Questions

Returns appear to be too good to be true?

Yes, the returns can be very good but they can and will fluctuate with commodity prices. The door can swing both ways with commodity prices going up and down; it’s a long term game of averages. All assets will produce three revenue streams Oil, Natural Gas, and NGL’s (Natural Gas Liquids). We have found that this is a great way to hedge our bets and diversify the revenue income.

How do you know they will drill more wells?

There are no guarantees that new wells will be drilled on your minerals. Our approach is to own assets that currently have producing wells. What our experience has shown is that if there are already good producing wells they will drill additional wells on our minerals. The theory is that since the infrastructure is in place there is a high probability that they will drill new wells. From an economics standpoint our approach has proven very effective. There are alot more variables that we take into account during our due diligence but this is a key factor.

How long will the wells produce?

This is a loaded question, one that can differ from formations and operators. The short answer is that wells can produce for decades without ever being touched. The operators use a multitude of techniques to restimulate the wells when they decline. The great part about owning minerals is that this is at no expense to the owner. All the upside for hirer production and revenue without the expense.

Do I own the land?

No, you are purchasing deeded mineral interest in the subsurface minerals.

What services does Frontier Oil and Gas LLC offer?

Frontier Oil and Gas LLC specializes in oil and gas assets throughout the Rocky Mountain region, including Utah, Colorado, New Mexico, Wyoming, and North Dakota. Their services include acquisitions and leasing of mineral interests, accurate valuations to maximize sale proceeds, and extensive title verification to confirm ownership and decimal interest.

Why should I consider selling my mineral rights?

Individuals choose to sell their oil and gas mineral rights for various reasons, such as obtaining a substantial lump-sum payment instead of smaller, fluctuating royalty checks over time, simplifying estate planning, avoiding the administrative burden of managing mineral rights, diversifying investments, addressing immediate financial needs, or mitigating concerns about market volatility. Selling provides immediate liquidity and can reduce the risks associated with fluctuating oil and gas prices.

What are the benefits of owning mineral rights?

Owning mineral rights offers a great way to diversify into cash-flowing passive income. Investors can benefit from revenue streams generated by oil, natural gas, and natural gas liquids (NGLs). However, it’s important to note that returns can fluctuate with commodity prices, and investing in mineral rights should be approached as a long-term commitment.

How does Frontier Oil and Gas evaluate mineral interests?

Frontier Oil and Gas conducts thorough due diligence when evaluating mineral interests. They focus on assets with existing producing wells and assess factors such as the presence of infrastructure, the likelihood of additional drilling, and the potential for long-term returns. Their extensive knowledge of the basins they operate in enables them to make informed investment decisions.

What factors influence the decision to drill additional wells on a property?

While there are no guarantees that new wells will be drilled on a property, factors such as existing production levels, established infrastructure, and favorable economic conditions can increase the likelihood of additional drilling. Frontier Oil and Gas’s experience suggests that properties with good producing wells and existing infrastructure have a higher probability of future development.

How does market volatility affect mineral rights ownership?

Market volatility can lead to fluctuations in commodity prices, directly impacting the revenue generated from mineral rights. While owning mineral rights can provide substantial returns, it’s important to be aware that these returns may vary over time due to changes in the market. Investors should consider their risk tolerance and long-term investment goals when owning or selling mineral rights.