This client category includes individuals and business entities, and their agents, attorneys and representatives involved in the sale of royalty and mineral interests (producing and nonproducing), leasehold interests (working interests and overriding royalty interests), or surface interests (referred to in this discussion as “Oil and Gas Properties” or “Properties”), which are affected by oil, gas, and mineral exploration, development, and production activities.
Whether an offer to purchase properties is solicited or unsolicited, a prospective Seller may find it beneficial to obtain assistance from that point in time when a potential sale is negotiated, through the closing of the sales transaction. The spectrum of Sellers include those who have never been involved in a sales transaction, to those regularly involved in sales transactions. The services available through MMC are intended to accommodate all or selected needs of a prospective Seller, and to provide assistance to a Seller’s agents, attorneys, and representatives, in fulfilling the Seller’s obligations in a successful transaction.
The services available from MMC include:
- Evaluating an offer to determine its adequacy, or benefit to the Seller.
- Preparation of or negotiating the terms of a Purchase and Sale Agreement to verify the Seller’s interests are represented on issues of warranty, continuing liability after the sale, environmental issues, limitations on the assets to be sold, and purchase price adjustments.
- Coordinating the Seller’s compliance with the obligations and covenants imposed on the Seller in a Purchase and Sale Agreement.
These may include:
- Timely notification to all preferential rights holders;
- Compliance with all notice requirements imposed on the Seller in the Purchase and Sale Agreement;
- Verification of gas imbalances;
- Response to all title defect notices, including preparation or securing of curative materials and documentation, or determination that no defect exists;
- Verification of the accuracy of claimed purchase price adjustments;
- Verification that the forms of closing documents (and related exhibits) comport to the terms of the Purchase and Sale Agreement, and are properly prepared to accurately describe the Properties and interests being sold;
- Completion of all change of operator forms so that following the close of the transaction, as to any Properties which have been operated by Seller, the Buyer will be recognized as operator; and,
- Verification of the accuracy of all preliminary and final closing statements.
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