Through years of working with oil and gas interest owners we have learned that the decision to sell typically revolves around two motives: personal or financial. Some of the most common reasons people have decided to sell are highlighted below.
Reduce Risk
In volatile oil markets, an asset has potential to be very valuable in certain circumstances and far less valuable in others. The market is everchanging and several inputs can impact the value of your assets.
Liquidity
We here at Locke Resources understand that life is expensive. Many times, selling your asset is as simple as taking cash off the table. Knowing, understanding, and being able to realize value are key reasons to sell any asset. The opportunity to position yourself for retirement and/or estate planning, buy a home, pay for a loved one’s education, or have more capital saved for a rainy day may be the exact reason to sell your interest.
Alternative Investment
Your oil and gas ownership is part of your overall investment portfolio. Oil and gas interests are a depleting asset. Divesting an interest that is not producing at an attractive rate for the owner can provide capital to invest in other areas that might better suit an owner’s needs and investment goals.