Oil and Gas Purchase Agreements


Summary

This practice note provides an outline of the types of structures underlying oil and gas acquisitions and divestitures, discusses the key information required to evaluate the proposed deal, and details the terms that are included in a purchase agreement. The disposition of oil and gas assets usually involves the sale of oil and gas leases and wells and other equipment on the lands covered by the leases. Often included in the transactions are mineral fee lands, royalties, and net profit interests. Contracts related to the assets are also part of the assets. In most states, the assets may be characterized as real property, personal property, and contracts.