This client category includes trustees responsible for reorganization or other bankruptcy procedures, or individual or corporate trustees, and their agents, attorneys, and representatives, responsible for the management and control of royalty and mineral interests (producing and nonproducing), leasehold interests (working interests and overriding royalty interests), or surface interests, which are affected by oil, gas, and mineral exploration, development, and production activities (referred to in this discussion as “Oil and Gas Properties” or “Properties”) leading up to and following a foreclosure.
In many instances, bankruptcy and foreclosure proceedings include Oil and Gas Properties (both producing and nonproducing). While court appointed receivers/trustees, or trustees in a foreclosure proceeding generally have expertise to enable fulfillment of their accounting and managerial responsibilities, this expertise may not include the particular knowledge and expertise required to effectively deal with Oil and Gas Properties, and to determine, maintain, or maximize the value of such Properties, or to continue operations of those Properties once acquired.
The services available from MMC include:
- Conducting an inventory of all Properties, and verifying title, or the existence of liens or encumbrance.
- Generating engineering, geological, and geophysical evaluations of the Properties to determine their value.
- Physically operating the Properties and maintaining necessarily related expense and accounting records.
- Recommending and supervising reworking, workover, development, or exploration activities that may be required or which may be beneficial in order to enhance the value of the Properties.
- Securing, organizing, and maintaining all land, legal, well, production, and accounting records for the Properties.
- Assisting the Receiver in preparing the Properties for sale. These efforts may include:
- Identification and solicitation of potential purchasers;
- Assistance in determining the price and terms of sale of the Properties; and,
- Assisting in the completion of the sale of the Properties.
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