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May 9, 7:45:23p
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- I would like to speak to a representative. Who do I call?
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EnergyNet has business development representatives in every major Oil and Gas Province. Please visit our Contact Us page for telephone, fax and address information. Also, you may call our home office, toll free, at (888) 351-4488.
- I am interested in Selling with EnergyNet; tell me more about your sales cycle.
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If you are considering selling oil and gas properties, please keep EnergyNet in mind as a valuable vehicle to streamline the sale. EnergyNet markets working interests (operated and non-operated), overrides, royalties, and non-producing minerals in the Lower 48 United States. Typically, the properties we sell are primarily PDP, and range in value from $100 to $10MM. We have sold packages of properties valued at over $77MM.
As a seller, you will achieve the maximum dollar amount for your properties by exposing them to the largest universe of registered and accredited bidders (12,500+ and growing), thereby maximizing competition and obtaining the highest possible values.
Selling properties with EnergyNet is quick and easy, taking approximately 35-40 days from the time you submit your completed data package to the time you receive your proceeds (for 1 property or 100 properties).
Since EnergyNet runs a continuous auction, you can sell properties whenever you like and never have to worry about cancelled or postponed auctions. You can work at your own pace with no looming deadlines. When you're ready, we're ready.
We've sold 21,000 properties for more than 1,700 companies and individuals including Chevron, Apache, Shell, Total, Chesapeake, Kerr-McGee, Citation, Huber Energy, Ward Petroleum and Merit Energy. We have met and exceeded these Sellers's expectations, and we can do the same for you.
Most importantly to you as a seller, we work on a success-based commission, so there is no risk to you. If we do not sell your properties for your price, we do not get paid. That creates some strong incentive for us to perform. EnergyNet allows its sellers to set a minimum reserve price on any size property.
We look forward to working for you!
- What does EnergyNet's commission include?
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- Property Preparation
- Land Staff Support
- Scanning of all Hardcopy Data / Electronic Data Transfer
- Hosting Online Due Diligence Data Rooms for each lot
- Creation and Delivery (Mailing and Downloads) of Bound Data Package and CD-ROMS to Buyers
- Property Marketing, Advertising and Promotion
- Facilitate the Competitive Bid Process/ Screen Buyers / Credit Verification / FINRA suitability
- Closing Services / Post-Sale Negotiation Services
- Wiring / Escrow Services
- Conveyance Documents to Seller and Buyer Recorded
- What documents and information will I need to sell a property?
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First you need to register as a seller on the website, and enter the property data sheets online. To enter property data sheets online:
- Go to the seller's login page
- Log on as a Seller with your user ID & password -- if you don't have a user ID & password, please register.
- Click on "Create New Lot"
- Enter Property Name, Reserve Price, State & County then hit "Create Lot"
- From the drop down menu, choose your property type, for example choose "Non-Operated Working Interest" then click the "Add Property" button.
- Complete the Data Sheet, Save it.
- For Multiple properties, return to the "Edit Lot" page and complete steps 5 and 6 again until finished.
After you've entered the property data sheets online, we will need the following documents to sell your property:
Seller's Checklist for Working Interests:
- Signed EnergyNet Seller's Agreement -- download and print
- Notarized & Executed Outgoing Assignment -- leave assignee section blank
- Property Data Sheet for each well -- complete the online form -- available from your seller's homepage
- Lease Operating Statement for six months or more (or copies of check stubs and joint interest billings)
- Copy of Source Document (assignment in to current owner of record)
- Any other additional documentation (Well Logs, Engineering Reports, Reserve Reports)
- Operated Working Interests need an Equipment Inventory List
- Operated Working Interests need Change of Operator Forms (P-4s)
Seller's Checklist for Overrides and Royalty Interests:
- Signed EnergyNet Seller's Agreement -- download and print
- Notarized & Executed Outgoing Assignment / Deed -- leave assignee/grantee section blank
- Property Data Sheet for each well - complete the online form -- available from your seller's homepage
- Copies of Check Stubs
- Copy of Source Document (assignment in to current owner of record)
- Copy of Division Order
- Any other additional documentation that would help market the property
- What is EnergyNet?
- EnergyNet offers an easy-to-use oil and gas property auction service that facilitates the sale of producing working interests (operated and non-operated), overrides, royalties, mineral interests, and non-producing leasehold. Most of the properties we sell are located in the lower 48 United States and range in value from $1000 to $10MM. EnergyNet is a continuous marketplace, with auctions going on every day of the year. We are and NASD Registered Broker / Dealer.
- What is your rate of success in selling properties?
- We have successfully closed 90+% of all the properties we listed. Please keep in mind that the sellers are able to set the minimum price they are willing to accept, and it is sometimes difficult to get buyer and seller expectations to match up. The EnergyNet competitive bidding process works very effectively to find the right buyers.
- How many people use your system?
- We currently have over 12,500 registered bidders with an accumulative credit allowance of over $2.1 billion in buying power. We have 1,700+ unique sellers, and the numbers are growing daily. We receive on average 2 million hits to the site each month.
- How do I buy a property?
- First you must complete the buyer registration, and provide the necessary documentation. You will then be notified by an EnergyNet staff member when you are eligible to bid or make offers on Properties, without delay. Bidding on
properties is easy. When you want to bid, go to the property detail screen, enter your username and password, and enter your bid amount including a bid proxy if desired. It is important that you take precations to enter the correct amount you wish to bid. Bids CAN NOT be retracted once they are in place.
- When does the auction end?
- Since we are a continuous auction, properties are always beginning and ending the auction process. EnergyNet auctions each property or lot individually with a specific end date and time. Our auctions normally run for 7 days, but it is ultimately up to the seller's discretion. All EnergyNet auctions end on a Tuesday, Wednesday, Thursday, and Friday between 10AM and 3PM CST.
- What is a proxy bid?
- A proxy bid is a form of incremental bidding with a maximum bid amount set by the bidding party - you. You enter your first bid and specify a maximum amount to which that bid may be increased incrementally as stated for the particular lot being auctioned. Your bid will be automatically increased in the applicable bid increments only to keep your bid the highest bid in the auction until you are the highest bidder at the close of the auction or until your maximum proxy bid amount is exceeded by another bid. This system ensures that you will not be pressured by time during the final moments of an auction.
- How do I evaluate a property?
- Due diligence information is available on our site including: assignments, source documents, decline curves, production history, joint interest billings, lease operating statements, check stubs, division orders, and maps. You can also print an indexed data package with a push of a button or order a bound hardcopy or CD-Rom data package.
- Who handles the filing of assignments & change of operator forms?
- EnergyNet handles the filing of assignments and change of operator forms.
How long does it take to sell a property and receive payment?
- From the time you submit your seller's agreement and complete data package to EnergyNet to the time you receive a check in your hands is approximately 35 days. It usually takes our staff 5-7 days to prepare your property and activate it on the site, then there is usually a 14 day previewing /due diligence period, then a 7 day auction. After the auction closes the high bidder has 2 business days to wire money into the EnergyNet escrow account. Once the money is received in whole, we send you a check within 10 days.
Who prepares the assignments?
- The seller is normally responsible for preparing the conveyance instrument.
Can I set a minimum reserve for a property I'm selling?
- Yes, a minimum reserve price can be set on any size property, not just the larger ones. This provides price protection, and you are under no obligation to sell the property unless your reserve is met.
Does EnergyNet market my property to prospective buyers?
- Yes, EnergyNet actively markets your properties to prospective buyers. We send out a newsletter email to our entire base of registered users detailing the property, seller, decimal interest, and location. We also make phone calls to operators in the surrounding area, as well as, fax notification to the key decision makers. Currently, EnergyNet receives an average of 2 million hits per month.
How much do you charge to sell a property?
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The following commission schedule applies for properties/lots individually selling for less than $500,000 in a calendar month. EnergyNet will give you the lowest possible commission for aggregate sales during a calendar month. For example, if you were to sell 20 properties with an aggregate sales total of $800,000, your commission would be 5%.
| Gross Sales Price | Commission |
| < $100,000 | 10% |
| $200,000 | 9.5% |
| $300,000 | 7% |
| $400,000 | 6.75% |
| $500,000 | 6.50% |
| $600,000 | 6% |
| $700,000 | 5.50% |
| $800,000 | 5% |
| $900,000 | 4.75% |
| $1,000,000 | 4.50% |
| > $1,000,000 | 4% |
The following commission schedule applies for properties/lots individually selling for greater than or equal to $500,000 in a calendar month.
| Gross Sales Price | Commission |
| First $ Million | 4.0% |
| Second $ Million | 3.5% |
| Third $ Million | 3.0% |
| Fourth $ Million | 2.75% |
| Fifth $ Million | 2.25% |
| Greater than $ 6 Million | 2.0% |
What other costs are involved in selling a property?
- The only cost to the seller is a commission if the property sells, as long as, we agree on the minimum reserve price. We do not charge marketing fees and we do not charge you if your property does not sell.
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