Acquisition Criteria

Thorough evaluation results in smoother, faster transactions.

Required Documentation

  • The most recent six months of check stub data
  • If available, the most recent Ad Val tax assessment (e.g. local property tax)

Within 48 hours of receiving this documentation, Sovereign’s in-house petroleum engineers will assess the asset value and provide a tentative offer price to purchase, subject to confirmation of interest ownership.

Interests purchased by Sovereign Royalties include mineral interests, overriding royalty interests, net profit interests and term royalties that meet these criteria:

  • Located in North America, Onshore and Offshore
  • Sovereign to own interests directly, no partnerships
  • Price deck based on prior six months actual average difference from NYMEX or Henry Hub
  • No Well-bore only
  • Available acreage desirable, but not necessary
  • At least 12 months of ongoing production
  • No law suits or pending litigation
  • Deal with end users, not brokers
  • If Drill-to-Earn, then remaining term: non HBP leasehold
  • Consider no assets that accrue out of ongoing litigation