Investment Strategy
Investing in Minerals and Royalties:
JD Harkey Energy provides investors the opportunity to invest in America’s energy production.
ROYALTIES DEFINED:
A royalty payment is made to the legal owner of a property by those who wish to use it for the purpose of generating revenue.
A royalty payment can be made for patents, copyrighted works, franchises, or in our case natural resources, such as oil and gas production.
Owning royalties does not entail assuming the risk of paying for exploration and development of the natural resource.
MINERAL RIGHTS:
There are two main types of rights associated with land:
- Surface rights: allows land owner to build, farm or use the surface land in any way allowed by law.
- Mineral rights: owner possess sub-surface rights and may lease the right to drill for hydrocarbons, such as oil and/or natural gas, to an operating company.
When oil or gas is discovered and produced in paying quantities, the mineral rights become a Royalty Interest and the owner of that interest is entitled to a percentage of the monthly oil or gas sales.