​In oil and gas investments, there are few opportunities that combine the degree of potential profitability with low or moderate risk quite like owning mineral rights. Acquiring and leasing mineral rights for development allows investors to enjoy the profits that come from successfully producing wells without having to shoulder the risk, expense, or liability that often accompany other types of oil and gas investments.
 
Investors often do not have an extensive understanding of mineral investments. Those who are new to oil and gas investments, and to mineral rights, in particular, may bring with them certain misconceptions that make pursuing these investments seem more complex than they are.
 
It is important to be educated regarding these types of investments. Understanding how mineral rights work, and how the right partner can mitigate your risk and maximize the profitability of your investments, can set you up to create significant cash flow and build generational wealth through wise mineral rights acquisitions.
 
Myth 1: Purchasing land in itself is sufficient to ensure ownership of mineral rights.
The first thing investors should understand is that mineral rights can be separated, or severed, from surface rights. One person might own the surface of the land, while another might possess the rights to the minerals (such as oil and gas) that are beneath the surface.
 
Obtaining the rights to minerals means that investors must have a clear understanding as to what they are purchasing, where their rights end and the landowners begin, and how they will navigate issues such as the surface owner’s wishes once the mineral rights are leased. The reality is that mineral rights ownership provides a significant advantage for investors because it frees them from liability concerns borne by the operator of the well(s). 
 
Navigating these issues does not have to be a burden on investors, as long as they are working with the right partner. A mineral rights project, such as those offered through Redhawk, can allow investors to enjoy the profits of mineral investments without the worry of the legal ins and outs of obtaining the mineral rights in the first place. 

Myth 2: Mineral rights investments can leave investors liable for damages and accidents.
Investors need not  have concerns that mineral rights investments will leave them responsible for injuries, damages, compliance problems, or other surface-related issues arising from the extraction of the oil and gas underneath the surface.
 
The reality is that mineral rights leasing provides a significant advantage for investors because it frees them from liability concerns regarding issues such as damage to neighbors' lands, lack of compliance, and so forth. These risks are borne by the companies drilling the wells and overseeing the development of the project, not by the mineral rights owner who has leased the right to an operator to extract the oil and gas beneath the surface. 
 
With the right managing partner, not only are investors free from liability related to the well, but they can be sure that potential contractual issues or confusing legal points have been ironed out in their favor so that they can enjoy maximum profits with a minimum of risk and worry.

​Myth 3: Mineral rights investments are risky endeavors. 
There may be other questions relative to the ownership of mineral rights and the low-level of risk benefiting mineral rights investments.
 
Any investment, including mineral rights, carries some degree of risk. For instance, an upfront lease bonus might be the only payment your receive if the operator doesn’t drill on your acreage, but your ownership does not expire which allows you to lease to another operator for another bonus. Over time, even the most abundant wells will eventually be depleted, but new oil field technology my bring them back to life and prosperity as we have seen in the Permian Basin and now in the STACK play in Oklahoma.
 
Over the long term, and compared to other types of oil and gas investments, mineral investments are a relatively low-risk endeavor. This is especially true when these types of investments are undertaken with the right investment partner to guide you.
 
An experienced investment partner can guide you through the process of leasing of mineral rights to ensure that you enjoy the most profit with the least amount of risk. Having a partner to stand alongside you can simplify getting involved in mineral investments.
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Myth 4: It is difficult to know where to make the right mineral investments.
When deciding to pursue mineral rights investments, it is important to choose the right projects which to commit. The wrong ones can yield lower returns than you desire, or create complications that make it difficult to build wealth through mineral rights ownership.
 
The reality is that the right managing investment partner can identify and acquire the most lucrative mineral investments. Careful analysis by geologists and engineers aligned with a partner (like Redhawk) can find or identify acreage that is favorable to investors and more likely to return a higher yield over time.
 
If you want to pursue mineral rights investments, you can build wealth within a low to moderate risk environment. The key is to understand the reality behind these types of investments and then find a reliable investment partner to help you navigate these realities.
 
At Redhawk, we provide our investors with profitable, low to moderate risk, investment opportunities that include mineral rights projects. With us, you don't have to worry about with whom you are investing and can focus on taking advantage of the wealth potential available in mineral rights investments.

The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates.

​We’ve discussed the benefits to investing as an accredited investor, and how it provides an investor with access to wealth-building opportunities not otherwise available. Financial institutions may similarly qualify as institutional accredited investors, although the qualifications to become an accredited institutional investor differ from those for individuals.

The potentially higher yield in private placements or other vehicles open only to accredited investors is at times offset by higher risk. As with any investment, some bear more risk than others.

With the advent of horizontal drilling technologies, mineral rights have become an appealing, comparatively lower-risk investment for many seeking to diversify their portfolios and generate revenue and generational wealth. Unlike other investments in oil and gas, such as those that invest directly in drilling, mineral rights ownership does not carry with it the risk of dry holes or heavy operating costs.

Mineral owners can see revenue in the form of significant lease bonuses, which are upfront lump sums paid by drilling operations for the lease and use of the land for the production of the minerals of commercial value the land contains. In this case, it is oil and gas.

​In addition to the lease bonus, operators pay royalties to the mineral owners on everything produced. Because these royalties are paid before any other costs are deducted, the market price of oil would need to drop to effectively $0 before revenue generation for the mineral owner ceases. Investors can anticipate 20 to 30 percent IRR in many cases.

For example, our recent offering - Redhawk Minerals Fund I in the STACK Play -  is exceeding our expectations with 50 wells in production and 62 wells beginning or filing pre-drilling activity already in units where the fund owns minerals. In Q4 2017, revenue was 146 percent higher QoQ.

Most importantly, mineral rights never expire. Because they are a real property right, mineral rights and the wealth they generate can be passed down through generations. For investors seeking high-yield opportunities that can build legacies for their families, mineral rights are an excellent portfolio choice.​

Jack Nichols
Managing Partner
Redhawk Investment Group
Dallas, Texas
www.redhawkinvestmentgroup.com
[email protected]
​
Jack Nichols is a founder and Managing Partner of Redhawk Investment Group, a family-owned and operated energy company with offices in Dallas, Texas and Oklahoma City, Oklahoma. The company developed and uses an investor-friendly business model for use in the private placements of mineral rights aggregations and drilling and development projects.

When it comes to oil drilling investments, there have been a few iconic locations. Spindletop, for example, is one of the most famous oil fields in American history, singlehandedly starting the Texas oil boom and contributing to the rise of the United States as a world leader in oil production.
 
Identifying and taking advantage of areas that promise these kinds of rich productivity can enable accredited investors to enjoy the near-term cash returns and long-term profitability possible through oil and gas investments. It is for this reason that oil companies and investors have been flocking to the Oklahoma STACK Play for the last several years, as the area's rich oil and gas reserves have been unlocked by new oil field technology and the resources it has tapped.
 
If you have heard about the Oklahoma STACK Play and want to know more, or if you are considering taking advantage of Redhawk's current investment opportunity in the area, what follows is a look at the Play and what it offers to accredited investors.
 
What is the Oklahoma STACK Play?
The Oklahoma STACK Play and the similar SCOOP Play are large blanket areas of oil-bearing shale zones within the state of Oklahoma that contain reserves of crude oil and condensate (oil that is in a gaseous state underground but which condenses into a liquid form when brought to the surface).
 
The acronym STACK stands for Sooner Trend Anadarko Canadian and Kingfisher, which are descriptive terms identifying the area as an oil field located primarily in Canadian and Kingfisher Counties (though the Play also encompasses a number of other counties in Oklahoma). The acronym also refers to the multiple layers of pay zones stacked like pancakes one on top of another in the region.
 
The area, in the last few years, has become a hot spot of alternative or unconventional drilling and a profitable location for numerous oil and gas investments including drilling and mineral rights acquisitions.
 
What is the history of the oil and gas investments in the Oklahoma STACK Play?
While interest and activity in the Oklahoma STACK Play has increased over the last few years, the area is not new to U.S. oil investments. Instead, the location had earlier been drilled using conventional methods for many prior years.
 
Driving the current excitement about the area has been the application of new drilling methods (such as horizontal drilling) that enable oil companies to retrieve large amounts of oil from this vastly rich field. For example, some horizontal wells already have produced 50 percent more oil than their vertical counterparts.

Learn how you can make 25%+ in annual returns by investing in mineral rights.
​Interested in more information? Please don't hesitate to call our office at 844-952-7363 or comment below and we'll get back to you.

​The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates.