What is EnergyNet?
EnergyNet is a continuous marketplace for oil and gas property transactions, with auctions and sealed bid sales available for bidding every day of the year.
EnergyNet offers an easy-to-use oil and gas property auction and sealed bid / negotiated sale 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 $1,000 to $100MM.
I would like to contact EnergyNet and speak with a representative. Who do I call?
EnergyNet has Business Development Representatives in every major oil and gas region. To locate your Business Development Representative, visit our Contact Us page for a full list of contact information including telephone, fax and email address information.
- Chris Atherton - Houston - (713) 861-1866 - email@example.com
- Michael Baker - Dallas\Midland - (972) 372-0232 - firstname.lastname@example.org
- Ethan House - Oklahoma City - (405) 759-8437 - email@example.com
- Ryan Dobbs - Denver/Western States - (303) 500-3063 - firstname.lastname@example.org
- Home Office - Amarillo - (806) 351-2953 - email@example.com
- Cody Felton - Eastern States - (713) 861-1866 - firstname.lastname@example.org
- Lindsay Ballard - Midland/Dallas - (432) 547-0424 - email@example.com
You can always call our home office toll-free at 1-877-351-4488.
I am interested in Selling with EnergyNet. Tell me more about your sales cycle.
If you are considering selling oil and gas properties, please keep EnergyNet in mind as a valuable vehicle to streamline the sale. EnergyNet markets producing fields, working interests (operated and non-operated), overrides, royalties, and non-producing minerals in the Lower 48 United States. Typically, the properties we sell range in value from $1,000 to $100MM.
As a seller, you will achieve the maximum dollar amount for your properties by exposing them to the largest marketplace of registered and accredited bidders (20,000 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, regardless of the size of your lot package.
Since EnergyNet runs a continuous auction and negotiated sale service, you can sell properties whenever you like and never have to worry about canceled or postponed auctions. You can work at your own pace with no looming deadlines. When you're ready, we're ready.
We've sold over 50,000 properties for more than 5,000 companies and individuals including Chevron, ExxonMobil, Apache, Shell, Total, EnCana, EOG Resources, Devon, Marathon, Newfield, EP Energy, Chesapeake, Citation, Hilcorp, Merit Energy, FDIC, the State of North Dakota, Bank of America, Wells Fargo, Harvard and Stanford University. EnergyNet created and hosted the Bureau of Land Management's Oil and Gas Lease Internet Auction Pilot program and assists in the divestment of leases for the States of Colorado, Utah and North Dakota. We have met and exceeded these sellers' expectations, and we will 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 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?
- Engineering / geologic support
- Land staff support / pull historical well production
- Property preparation and data room preparation
- Scanning of all hardcopy data / electronic data transfer
- Hosting online due diligence data rooms for every lot
- Creation and delivery (mailing and downloads) of bound data package and flash drives 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
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. Please contact your Business Development Representative to discuss suggested minimum reserve prices.
What documents and information will I need to sell a property?
First, you need to register as a Seller on the website, then enter the property data sheets online. To learn more about the process and watch a tutorial video about using EnergyNet's powerful online Auction Manager, visit the "How do I sell?" page.
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 (using the online form)
- 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 your rate of success in selling properties?
We have successfully closed 82% of all the properties we listed. Please keep in mind that EnergyNet 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 align. The EnergyNet competitive bidding process works very effectively to find the right buyers.
View our Sales Results page for historical sales information.
How many people use your system?
We currently have over 20,000 registered bidders with an accumulative credit allowance of over $8 billion in buying power. We have 5,000+ unique sellers, and the numbers grow daily.
How do I buy a property?
First you must register as a Buyer and provide the necessary documentation. You will be notified by an EnergyNet staff member without delay when you are eligible to bid or make offers on properties.
Bidding on properties is easy. When you want to bid on a property, go to the property's bid page. You will enter your Maximum Bid, then confirm your account password.
Please enter your bid amount carefully and double-check your entry. Bids cannot be retracted once they are in place.
To learn more about bidding and watch a comprehensive bidding tutorial video, visit the "Bidding on Auction Listings" page.
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 at the seller's discretion. EnergyNet auctions typically end on a Tuesday, Wednesday or Thursday between 10AM and 3PM Central time.
What is a Maximum Bid?
The EnergyNet auction engine will bid automatically on your behalf, up to the amount you have specified as your Maximum Bid. Bids will be placed at the minimum amount necessary to maintain your status as high bidder.
For example, let's say you would like to bid on a property with a current high bid of $300,000 and a bid increment of $10,000. If you enter a Maximum Bid of $1,000,000 on this property, a new bid will be placed automatically at $310,000, the next minimum increment, to make you the new high bidder. The system will continue to increase your bid whenever you are outbid, up to, and including, the $1,000,000 limit you specified.
The Maximum Bid mechanism is an invaluable tool to maintain your bidding status. Because it operates automatically, based on the parameters you set, you don't have to be active during the auction to participate, and you don't need to manually place additional bids. This feature can be very important when bids begin to increase faster than you can respond manually.
After you have set a Maximum Bid amount, you don't have to be online during the rest of the auction if you are unable. This is especially useful when you must be away from your computer during the auction, or if you won't have access to the Internet at times while the auction is in progress. You don't have to be online or logged in for the system to bid on your behalf.
To learn more about bidding, visit the "Bidding on Auction Listings" page.
What if I am not available to bid on the last day of the auction? What types of bidding does EnergyNet offer?
When you place a Maximum Bid, you are asking EnergyNet's bid engine to bid automatically on your behalf, up to the amount you have specified. EnergyNet will place bids at the minimum amount to maintain your status as high bidder. For example, if you place a Maximum Bid of $1,000,000 on an auction with a current high bid of $750,000, a new bid will be placed automatically at $760,000, the next minimum increment, to make you the new high bidder. The system will continue to increase your bid whenever you are outbid, but it will only bid up to, and including, the $1,000,000 limit you specified.
After placing a Maximum Bid that represents the highest amount you are willing to pay for a property, you are able to participate in the auction even if you cannot follow the auction closely due to other obligations.
For more information on bidding, please contact your area Business Development representative.
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 flash drive data package.
Who prepares the assignments?
The seller is responsible for preparing the outgoing conveyance instrument, or having it prepared.
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?
It takes approximately 35 days from the time you submit your Seller's Agreement and a complete data package to the time you receive a check in your hands. 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, followed by 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 business days.
Does EnergyNet market my property to prospective buyers?
Yes, EnergyNet actively markets your properties to prospective buyers. Our broad and targeted marketing campaign includes:
- Personal Contact by Business Development to Bidders and Area Operators
- 20,000+ Pre-registered Bidders
- Highlighted Direct Website Marketing
- Save Search Profile Activation e-mails
- Direct Mail and Fax to Area Operators & Historical Buyers
- Weekly Email Notification to Pre-registered Bidders
- DrillingInfo Marketplace and Areas of Interests
- Press Releases to Industry Publications (A&D Watch, PLS, OGFJ, etc.)
- Target Marketing to Historical Buyers/Bidders/Viewers of Similar Properties
How much do you charge to sell a property?
The following commission schedule applies for properties/lots individually selling for less than $1,000,000 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 6.25%.
|Gross Sales Price||Commission|
The following commission schedule applies for properties/lots individually selling for greater than or equal to $1,000,000 in a calendar month.
|Gross Sales Price||Commission|
|First $ Million||4.25%|
|Second $ Million||3.75%|
|Third $ Million||3.25%|
|Fourth $ Million||2.75%|
|Fifth $ Million||2.25%|
|Greater than $ 5 Million||2.25%|
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. A listing fee will be charged on lots containing only non-producing leasehold.
Does EnergyNet provide engineering support on the properties listed on the auction website?
Yes, EnergyNet provides engineering support on larger value properties and operationally complex properties.
What safeguards does EnergyNet have in place to make sure Operated Properties are sold and conveyed to reputable operators?
EnergyNet offers a secure system for collecting information and vetting operators prior to accepting bids for operated properties.
Step 1: Operator Information Collection
When bidding on an operated property, the potential buyer provides the name of the operating company (or contract operator company if applicable), the states that the company is licensed to operate in, and the operator number(s). The potential buyer must assert they understand paragraph 4 of the EnergyNet Buyer's Agreement and that they will provide operator bonds and certificates prior to closing.
EnergyNet maintains a record of all submitted information, including the password verified identity of the potential buyer as well as the time the information is submitted.
Step 2: Verification and Seller Approval
After the auction has ended and the winning bidder has been determined, the bidder will be required to fax EnergyNet a copy of their operator bond and certificate/license. EnergyNet will then use their previously provided operator number to verify they are currently in good standing with the appropriate regulatory agency. EnergyNet will email the seller the name and address of the buyer along with the supporting documentation showing that they are an operator in good standing, and based on this information, the seller will have the option to approve or disapprove of the transaction before any funds are exchanged or any documents are filed of record.
EnergyNet can complete this verification and approval process within ten business days following the close of the auction. Ultimately, the Seller will know the buyer's identity and operator status before the transaction is consummated, but the vetting process will not be so encumbering as to deter competition during the auction phase of the sales process.
Who are your buyers?
Our 20,000+ pre-qualified bidders include publicly-traded E&P companies, privately-held E&P companies, private equity backed portfolio companies, upstream master limited partnerships, small-to-medium sized regional oil & gas operators, royalty aggregators, trusts, foundations, funds, investment groups and high net worth individuals. EnerygNet's pre-qualified bidders represent the marketplace.
What type of properties sell best in the EnergyNet auction?
All types of interests sell daily in the EnergyNet auction including; Producing Fields, Operated Working Interests, Non-Operated Working Interests, Overriding Royalty Interests, Royalty Interests, Mineral Interests, Leasehold Interests and even Rural Surface Properties. Please remember that properties with well-documented production information / due diligence supported by sufficient financial and ownership information sell best in the EnergyNet auction. The more information a buyer has available the more comfortable with bidding the buyer becomes.
What type of properties sell best in an EnergyNet sealed bid or negotiated sale?
A sealed bid / negotiated sale should be employed for properties that have significant upside potential, or in the case that a seller would rather offer the property package to a smaller set of potential purchasers. A private sale is also a great approach if you are looking for a discrete way to monetize your assets.
How are you sure the buyer will pay for the properties purchased?
EnergyNet contacts every registered buyer's bank or financial institution and verifies that their requested bid allowance is sufficient and liquid. Every EnergyNet bidder signs the EnergyNet Buyer's Agreement annually, has established a bid allowance, and has certified that they are a sophisticated and knowledgeable oil and gas investor.
How do I get on your mailing list to be notified of upcoming property sales?
Create a bidder/viewer registration on the Buyer registration page.
You will be notified of all upcoming properties for sale through a weekly e-mail newsletter after you register as a buyer. You can also create a "Saved Search" from your Buyer's Homepage that will notify you of a property that meets your search criteria (Operations in Oklahoma for example) when the lot is activated (live) on the EnergyNet website. Contact your area Business Development representative to keep an eye on specific acquisition opportunities.
To learn more, click here to locate your Business Development Representative.
What are my obligations on a property where I am the winning bidder but the seller's minimum reserve price was not met?
The high bid in the auction is a binding and valid offer even if the seller's minimum reserve price is not met, so long as the seller accepts it. If the seller makes a counter offer to your high bid in the auction, as in any negotiation, you can increase your offer, stand firm, or walk away.
It is EnergyNet's protocol to negotiate with the high bidder in the auction to work out a deal before moving to the second highest bidder. If you choose not to bid during an auction, you minimize your chances of negotiation after the lot has closed.
What are the obligations of the backup bidder?
There are no obligations to the second highest bidder in the EnergyNet auction. If the seller's minimum reserve price is not met, and we are unable to successfully negotiate a price with the high bidder, we will contact the second highest bidder to begin negotiations, but there is no obligation.
If I am the successful buyer of a property in the EnergyNet auction, when do I take title?
After you are deemed the winning bidder of a property, EnergyNet will send you an invoice. We use your bidder registration information to complete the conveyancing documents. After the funds are received in full and all contractual obligations (i.e. preferential rights, consents to assign, etc.) are waived or exercised and all regulatory filings (change of operator forms, etc.) are complete, EnergyNet will send the conveyance documents for recording. We will then send the buyer and seller recorded copies.
How can I find out what a property sold for after the EnergyNet auction has ended?
Please contact your area Business Development representative for such requests.
Where can I obtain transaction metrics for EnergyNet property sales from the past 12 months?
Please contact your area Business Development representative for this information.
At what price should I set my minimum reserve?
Please contact your area Business Development representative to discuss specifics regarding your property or package of properties.
Do prospective bidders know my minimum reserve price?
No, your reserve price is confidential and is never revealed to prospective bidders. However, there will be notification once the bids have met or exceeded your minimum reserve price letting them know that the auction is now absolute.