Timing

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Timing

 Timing is as important as location.  A dry hole can destroy a property’s leasing value, but an impressive find can exponentially increase the value of a property.  Oil companies generally pay less at the beginning of a lease acquisition project and more at the end of a project.  If you are holding out for a really good deal, sometimes an oil company will come back to you at the end of the lease acquisition play and agree to your terms.  If the timing is not right for the best deal, patience will be  necessary to get what you want.  The gamble is whether a dry hole will come between your property and the nearest known production.  If a dry hole destroys the leasing value of your property after you have held out, you lose the gamble.

Copyright 2011 by Edward G, Hawkins. All rights reserved.