Oil and Gas Leases, Rights
  Member of the Better Business Bureau About Our Program
Thank you for your inquiry. We believe the service we offer comes at a crucial time in world history. Nearly everyone on the planet will be affected by the coming world petroleum shortage, the currently increasing price of oil, and the resultant enormous transfer of wealth to oil producers from everyone else. But only American citizens are allowed by their government to participate in this power shift to their private advantage. Of course, we Americans will have to join the citizens of Canada, Germany, Brazil, Japan and nearly every other country in the “pain at the pump”. Unlike others, however, we Americans have the opportunity to carve out a piece of the action for ourselves through little-known State and Federal leasing programs that are open to every citizen on an equal legal basis with multinational corporations. If you are successful in acquiring a Federal oil and gas lease, you may keep it for ten years by paying a nominal yearly rental; you may keep a state lease five years before production must begin by paying a yearly rent. However, we do not expect you will be keeping the lease that long. The sharply increasing price of petroleum (oil and natural gas) in the past couple of years has dramatically impacted our business. Twenty-eight of our client’s leases have recently been purchased by an oil company and are awaiting seismic evaluation and drilling permits. We are currently negotiating the sale and assignment of 37 client leases to a second company.
We invite you to join Valentine Peck of Virginia, John Crawford of Texas, Bill Cole of Texas, Norbert Jerantowski of Illinois, Joan Wright of California, George Dushaw of South Dakota, Wanda Schacht of New Jersey and Kenneth Ingram of Rhode Island who are currently banking oil and gas lease royalties from wells on leases acquired through our company.
As we value our client' personal and financial privacy, we regret that we cannot produce addresses for these clients, nor do we ask clients to serve as references. Your account will be treated with the same discretion.
The Oil and Natural Gas Supply Crunch
As everyone knows, the price of crude has skyrocketed to new levels, but it has several times before in our lifetimes, and the collapsed. What is different this time? For one thing, since the “oil shock” of the 1970’s, we have burned up a whole lot of the stuff without finding commensurate replacement reserves. Many experts believe that global production will peak within this decade. New oil discoveries peaked in 1964 and have declined ever since; they have fallen increasingly short of consumption since 1981 (British Petroleum, Statistical Review of World Energy full report workbook 2004, at www.bp.com). New technologies will not stop this decline; a hybrid car still has a gas tank... and there are not “hybrid” jetliners. “Unconventional” sources such as tar sands and oil shales will doubtlessly be exploited, but they are energy-intensive and environmentally unfriendly to develop. Stand on an overpass above a busy freeway in an American urban area and gaze upon the endless roaring river of steel beneath you; now, imagine this scene in every big city in the vast country, 24/7, every day, for decades... it is amazing that the production system has been able to keep up with this demand so far.
Global Economics
There is nothing new about wars and the "clash of civilizations"; this was the main cause of the first oil shock and, sadly, is as old as humanity itself. What IS the new permanent factor in the oil supply equation would have been unthinkable thirty years ago... the emergence of China and India, with their over two billion people, from primitive third-world "oxcart" economies to the brink of modern technological consumer societies. If only one in ten Chinese ends up owning a car, that is over 100 MILLION new thirsty fuel tanks in the world. (Can the global environment sustain this, let alone the world’s oil supply?) Already, the Chinese are aggressively muscling into oil and other raw material markets; they are reportedly courting Hugo Chavez of Venezuela, no friend of America and yet one of the biggest oil exporters to the U.S.
How We Serve You
The United States is the only country that allows its citizens the right to purchase oil and gas rights on publicly-owned State and Federal land equally with Exxon, Shell and Chevron Texaco. (While Arabia has a much greater reserves, can you imagine the Saudi or Iraqi being given this right?) We offer our clients the opportunity to acquire exclusive drilling rights on government leases in active plays in the Rocky Mountain oil patch states of Wyoming and Colorado. We geologically evaluate the parcels offered in the periodic government auctions; attend the sales and bid on your behalf; and assist you in the maintenance and marketing of your lease on a due-diligence basis. We are ready to represent you at the upcoming Federal and State lease sales in Cheyenne and Denver.
Please inspect the list of lease parcel sizes on the contact us page and select the parcel size you prefer. Remember that production royalties are the real long term income source in the oil and gas business. At the time of sale of your lease to an oil company, it is standard procedure for you, the seller, to negotiate a permanent overriding percentage royalty – usually 3% to 4% but sometimes up to 10% - on the value of all oil and gas produced for the lifetime of the lease, which is indefinite as long as production continues. This can roll into a nice income stream lasting many years.
Also, please print out, carefully examine, sign and date the Contract and Lease Agreement found on the last page. This spells out our rights and responsibilities to each other in our business relationship. Please return the original to us with your payment. We will return a countersigned copy.
In conclusion, this is a three-step process. First, we acquire by purchase at auction a lease on your behalf. Second, we negotiate for the sale and assignment of your lease to an oil company. The third and final step is the development and drilling of your lease resulting in, hopefully, a producing well or wells yielding long-term royalty income for you. We look forward to working with you to secure your piece of – hopefully – the last great oil boom.
Sincerely,
Robert C Michael
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