Our process for purchasing your mineral assets is outlined below whether you are selling all or only a portion of your mineral interests:
Discussion
Contact us via phone, email, or the contact form on our website for a free, no obligation consultation. Documentation such as recent check stubs, lease offer letters, and copies of lease agreements will greatly assist our initial discussion on the potential value of your mineral rights.
Valuation
Based on current production and future development projections, K2 Energy will provide you an offer for your mineral properties based on Fair Market Value.
Agreement
With acceptance of our offer, we will execute a simple purchase agreement outlining the terms of our purchase offer. This agreement protects both the buyer and the seller throughout the completion of the transaction.
Due Diligence
We will perform a full title search to verify your ownership and prepare all required closing documents at no cost to you.
Payment
Upon receipt of the required closing documentation, we will promptly issue full payment in the form of a certified check or wire transfer.
1. Due Diligence
2. Valuation
We have significant experience in many of the major producing plays of the United States. This expertise allows us to perform an efficient analysis and accurate valuation for each unique property.
We model current and future production based on expected development scenarios and apply our proprietary pricing model in order to determine the value of your minerals today. We combine this with comparable sales information and anticipated risk profile to determine fair market value and our offer amount.
3. Offer
We will then submit our no-obligation offer supported by our thorough technical evaluation. Our proprietary process maximizes value and translates to high success rates in the highly competitive minerals bidding process. We will be there at your side to answer any questions you might have about our offer. It is important that you carefully think about the decision prior to selling to anyone.
4. Decision
If the offer is accepted, we will move forward with creating the necessary agreements and closing documents. All document creation, closing costs, and county recording fees are on us to help ensure a painless closing for you. If you decide not to sell your mineral or royalty interest to us, the process stops.
5. Agreement
The full terms of the sale will be outlined in an offer letter. This includes the purchase price, effective date, closing date, and our individual responsibilities.
6. Title Search
Before we can close, we must verify that you own the property in question. This is done through a mineral rights title search in the county in which your interest is located. This process includes researching the historical ownership of the property to locate any transfers of ownership and/or the separation of the mineral rights from the surface rights. For a single property in one county, the review period can take from a few days to a full week. For more complex title searches, this process can take from a few weeks to up to a month to complete. Assuming you have clear and marketable title, we will then draft the necessary conveyance documents required for you to sell your property. We will bear the cost of this step, which can often be expensive.
7. Closing
The final step is the actual closing where a mineral deed is executed and notarized in exchange for payment. Typically we use escrow services from a neutral third party such as a bank or an attorney to handle closing.