Fayetteville Shale: Will This Be You?

One afternoon the phone rings and it's someone calling from an oil company wanting to lease your land. At this point, you are still trying to remember where the acreage is and whether or not you even own the mineral rights. The landman is excited about the prospects for the Fayetteville Shale Play and seems to have just the right answers to all of your questions.

Well, that would be a nice problem to have - an oil or gas company wanting to pay you money for something that didn't even remotely resemble an area for oil and gas exploration. Times change, and so does technology. The oil and gas have been inside the rock formation for a long time, but the way to get them out of the ground has vastly changed.

The Barnett Shale in the Fort Worth area has become a tremendous success story in the development of gas shale exploration. There are many similarities between the two gas plays, so experience from the Barnett Shale would be most beneficial to those in the Fayetteville Shale.

Folks in this area have been approached and will continue to be approached by landmen representing oil operators who will want to lease their mineral rights. That is where the Bank of America comes in to help.

Lease negotiations. Operating agreements. Daily monitoring. It takes extensive knowledge, focus and effort to optimize the value of your oil and gas assets.

The gas business has a vocabulary all of its own. What is a bonus and net mineral acres? What is the royalty? What are delay rentals? What is the term and is there an option? What about the critical provisions in the lease agreement such as legal description and title, surface damages, pooling, unitization, release of acreage, shut-in royalty, pipeline easements and transmission lines, and force majeure?

The answers to these questions and many others are critical to the lease agreement that is to be signed, and we have a wealth of information and experience with each of these issues. 

Professional Expertise

As one of the largest corporate fiduciaries of oil and gas assets in the country, we deliver professional expertise and specialized services tailored to match your needs and objectives. Whether it's handling the everyday administrative requirements of your oil and gas property or delivering customized accounting reports to help you monitor these assets, Bank of America can help you maximize their revenue potential.

With more than 60 years serving clients with oil, gas and mineral properties, we offer a dedicated and experienced staff, lease negotiations, state-of-the art technology, market knowledge, audit oversight, specialized estate planning and administration, wealth transfer expertise, and our Bank of America marketing strength.

Our staff has a team of 90 industry-trained professionals, including petroleum engineers and geologists, landmen and accounting specialists.

Bank of America's power and size are powerful advantages when negotiating oil and gas leases. Our petroleum land management team is dedicated to protecting your mineral interests and strives to help you substantially increase your income over the life of your oil, gas or mineral property through aggressive negotiation and obtaining favorable terms for the leasing of your minerals.

With nearly 125,000 properties under management in 42 states, we are qualified to deliver a wide range of strategic and tactical services that most other providers can't even consider. We have a full staff of professionals providing petroleum engineering services.

Our capabilities include comprehensive oil and gas accounting services. We currently process about 4 million oil and gas accounting transactions and more than 150,000 revenue checks totaling more than $350 million on an annual basis.

Bank of America knows about the Barnett Shale and the prospects for the Fayetteville Shale - and it makes sense to work with a bank that has the background, experience, and unparalleled amount of resources and expertise to work with you.

Please do not hesitate to contact Bank of America with any questions about the Fayetteville Shale. As the Bank of Opportunity, we look forward to working with you and helping you along the way as opportunities arise.

(Ted Paup is vice president, Oil & Gas Property Management, of Bank of America.)