At Arena Minerals, our strategy is built on fostering strong, collaborative partnerships with mineral owners and production companies. Because we diversify across different oil and gas plays, we can spread our risk across many wells. In most cases, mineral owners have concentrated risk in a single well or production unit. We can help mineral owners understand these risks and offer them risk management options. We seek to offer fair valuations for high-quality mineral interests, with quick closings and simple, transparent terms.
A large percentage of “mineral buyers” are not really buyers at all. They contact people by mail and look for potential sellers. They have no intention of actually purchasing your minerals or royalty interests themselves. Once they convince you to sign a contract at a certain price, they flip that contract to a real buyer, making a significant profit for themselves. At Arena Minerals, we are the real buyer, and we are long term investors in mineral interests using our own capital.
With Arena Minerals, you can be sure that any offer we make to you is a real offer and that we will close on time as promised. We don’t use gimmicks, we won’t try to re-negotiate offers, and we are happy to work with your lawyers and other representatives.
One thing we want to make clear to all mineral owners: We will NEVER recommend that you sell ALL of your minerals or royalty interest. We will only purchase a portion, usually up to 50% of a mineral/royalty interest. Why? Because in the same way that reducing your risk can be a smart move, it can also be a smart move to preserve some upside. Remember this important rule: whenever you sell a portion of your mineral or royalty interest, you will end up being both right and wrong depending on what happens. If the well is a dry hole or quickly declines, you will be very glad you reduced your risk and locked in a higher profit. If the well becomes a good producer or if oil prices go up significantly, you may have traded away some upside, but you will still have a good profit on the portion of your minerals/royalty that you keep.
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