Knowledge Is Your
Greatest Asset
Before you sell or lease your mineral rights, arm yourself with the information you need to make the most informed decision. Alamo Exploration believes in full transparency — because educated mineral owners make the best partners.
Selling vs. Leasing:
What’s Right for You?
Selling Mineral Rights
Selling your mineral rights provides an immediate, lump-sum cash payment in exchange for a permanent transfer of your subsurface ownership. This option is ideal for mineral owners who want certainty, liquidity, and freedom from ongoing management of their mineral estate.
Advantages of Selling
Leasing Mineral Rights
Leasing grants a company the right to develop your minerals for a specified term in exchange for an upfront bonus payment and ongoing royalty payments from production. You retain ownership of the minerals and benefit from both immediate and long-term income.
Advantages of Leasing
The Alamo Exploration
Transaction Process
Secure Submission
Submit your property information through our encrypted, confidential evaluation portal. Your data is protected by bank-level security protocols.
Title & Geological Review
Our internal engineering and land team conducts a preliminary title examination and geological analysis of your mineral estate within 24 hours.
Formal Offer
A senior acquisition specialist contacts you to present a formal, no-obligation offer or leasing strategy tailored to your specific property and goals.
Transparent Closing
Upon acceptance, our title team completes a full title opinion, prepares closing documents, and ensures a smooth, expedited transfer with prompt payment.
Essential Terms
Every Mineral Owner Should Know
Understanding industry terminology empowers you to evaluate offers, negotiate lease terms, and protect the value of your mineral estate.
Mineral Acre
An ownership interest in the subsurface minerals beneath one surface acre of land. A mineral acre represents the right to extract and profit from oil, gas, and other subsurface resources. Importantly, mineral acres are distinct from surface acres and can be separately owned, transferred, and divided.
Royalty Acre
A fractional interest in production revenue from a mineral estate, without the obligation to pay any share of drilling or development costs. Royalty interests receive a percentage of gross production revenue (typically 1/8 to 1/4) free and clear of operating expenses.
Non-Operated Working Interest (NOWI)
An ownership stake in an oil and gas lease that bears a proportional share of development and operating costs but does not hold day-to-day operational control of the well or lease. The non-operator participates financially in drilling and production while the designated operator manages physical operations.
Authorization for Expenditure (AFE)
A formal document prepared by an operator that estimates the total cost of drilling and completing a well. Non-operating partners must approve and fund their proportional share of the AFE before operations commence. Rapid AFE funding accelerates the operator's drilling timeline.
Division Order
A legal document issued by an operator or purchaser that stipulates the fractional ownership interest of each party entitled to receive revenue from a producing well. Signing a division order authorizes the purchaser to distribute proceeds according to the stated decimal interests.
Title Opinion
A legal document prepared by a licensed attorney that examines the chain of title for a specific parcel of land and provides a professional opinion on the current state of mineral ownership, identifying any defects, encumbrances, or curative requirements.
Net Revenue Interest (NRI)
The percentage of production revenue that a mineral owner actually receives after all burdens (royalties, overriding royalties, and other encumbrances) have been deducted from the working interest. NRI represents the true economic interest in production.
Post-Production Deductions
Costs subtracted from a royalty owner's revenue check for gathering, processing, compression, and transportation of hydrocarbons from the wellhead to the point of sale. These deductions vary significantly by lease terms and state law and can substantially reduce net royalty payments.
Have Questions About Your Minerals?
Our team of experienced land professionals and title attorneys is ready to provide a confidential, no-obligation evaluation and answer any questions you may have.
Request a Confidential Asset Evaluation