FAQ's

• What advantages are there to selling my minerals and royalties for a lump sum?

• Is it true that oil and gas prices are at all-time highs?

• Do all mineral and royalty interests lose value over time?

• Why does American Land & Minerals want to buy my mineral and royalty interests?

What advantages are there to selling my minerals and royalties for a lump sum?

› Cleaning up your estate and saving your heirs from the complicated and expensive title    transfer process.
› Reinvesting the proceeds in safer investments.
› Putting an end to all the record keeping and paperwork.
› Taking advantage of the lowest long-term capital gains tax rate since the Great    Depression (15%) before Washington follows through on promises to let the Bush tax    cuts expire.
› Paying off debt, such as high-interest credit card balances, medical bills, a mortgage, or    a car loan.
› Applying the lump sum toward important family priorities, such as college expenses, a    home improvement project, or even a well-deserved family vacation.

Is it true that oil and gas prices are at all-time highs?

Yes. Today’s oil and gas prices are unprecedented. And like the stock market, oil and gas prices tend to climb in times of speculative exuberance, and then plummet once the realities of supply and demand overwhelm the emotion of the market. Those who held onto their technology stocks until the bust of the dot-com bubble learned this lesson the hard way. Though no one knows if oil and gas prices have reached their peak, there is no doubt that today’s prices are at all time highs…and therefore, there has never been a better time to sell mineral and royalty interests. 

Do all mineral and royalty interests lose value over time?

Yes. Oil and gas reserves are finite, and every oil and gas well is destined to be plugged and abandoned. So, although royalty income can increase in the short term due to rises in oil and gas prices or production enhancement projects, you can be certain that your royalty checks will decline over the long run and will one day stop coming. 

Why does American Land & Minerals want to buy my mineral and royalty interests?

Minerals and royalties are worth more to our investors than they are to most individuals and institutions. This is because our investors are able to significantly reduce the uncertainty of royalty income.

They do this in two ways. First, they do not have all their eggs in one basket. That is to say, they own interests in thousands of wells. So, the risk that one well will unexpectedly go down is offset by the thousands of other wells they own. Second, our investors limit the risk of falling oil and gas prices by trading futures contracts on the New York Mercantile Exchange. In effect, they lock in today’s oil and gas prices by assuring that the shortfalls in royalty income that would result from falling oil and gas prices would be made up in gains on their futures investments.  You may have heard of Southwest Airlines’ use of this same financial tool to protect itself from increases in jet fuel prices. 

The bottom line---our investors are able to limit the risks of holding minerals and royalties in ways that most of us can’t.  Lower risk means higher value…and a higher lump-sum payout to you.