Effortless, Fractional Investment In Oil & Gas Properties.
ExploreWhat are Mineral Interests?
Mineral interests, sometimes called mineral rights, are real estate interests - just like undeveloped land, a residential home, or a commercial building - but instead of involving the "surface" land and improvements (which generally only includes 0-100 meters below ground level), mineral rights involve the real estate deep below the surface of the earth, from ~100 meters below the surface to the core of the Earth.
Where do Mineral Interests exist?
The United States is the only major country in the world where private citizens and businesses can own mineral interests -- in nearly every other country the government owns these interests and receives all of the financial benefit.
Why are Mineral Interests valuable?
Mineral interests are valuable purely because of the extractable natural resources which can be contained within them. In the United States, this value predominantly appears as large deposits of crude oil & natural gas.
How do they cash flow?
When natural resources are discovered within owned mineral interests, usually by a geologist at a major oil company, the oil company can offer to lease the mineral interests from the owner(s) in exchange for a one-time lease bonus and an ongoing royalty fee paid from the proceeds of the sale of the oil or natural gas extracted from any future wells drilled. If no wells are drilled within an agreed-upon timeframe, usually 3-5 years, the acreage becomes un-leased again.
Nearly all assets are already producing oil & natural gas and won’t stop until wells completely deplete in the distant future. Token holders will receive regular cash flow distributions immediately upon investment.
- Monthly distributions via direct-to-wallet stablecoin (USDC) transfers
- Forecasted Yr 1 Cash Flow (Oct’24-Sep’25): $1,458,000 USD*
- Last 3 Mo Actual Cash Flow (Jan’24-Mar’24): $444,031 USD
- Last 6 Mo Actual Cash Flow (Oct’23-Mar’24): $731,255 USD
*Based on projections produced by Mineral Vault I Ltd which utilize both public and private data sources. The cash flow forecast presented here is net of management fees, but does not include the effect of U.S. property taxes or U.S. source income tax withholding. See also the “Disclaimers” section.
In a stable commodity price environment, mineral interests are a lucrative asset class to include in an investment portfolio.
- Target IRR: 10.12%*
- Target Multiple In Invested Capital (Full Term): 1.92x*
*Based on projections produced by Mineral Vault I Ltd which utilize both public and private data sources. The cash flow forecast presented here is net of management fees, but does not include the effect of U.S. property taxes or U.S. source income tax withholding. See also the “Disclaimers” section.
Expected and unexpected additional cash flow can manifest from mineral interests in many ways, including:
- Drilling of additional wells on the >10,000 gross acres of entity-owned acreage in the future, increasing cash flow.
- Lease bonuses associated with presently unleased acreage
owned by the tokenized entity. - Increases in oil & natural gas prices over time.
- Improvements in drilling and extraction technologies over
time which can result in increased production from existing
wells, better production rates from new wells drilled in the
future, and viability of new drilling locations.
Our team of oil & gas professionals handles the ongoing management of the assets, leaving token holders with a completely headache-free investment in mineral properties. Ongoing management services are comprehensive and include:
- Lease negotiations
- Division order verification & execution
- Royalty payment receipt & disbursement
- Property tax bill verification & payment
- Initiation and resolution of pay disputes with purchasers or lessees
The oil & natural gas produced from the assets included in the tokenized entity are automatically sold at or near commodity spot prices each month-end. These spot prices are a natural hedge against inflation in that they are market-determined and will naturally increase with inflation over time.
As a result, token holders can generally expect their their investment in a Mineral Vault token will be protected from inflation-related volatility.
The United States is the only major country in the world where private ownership of mineral interests is allowed by law. In most developed countries, the government owns and controls most or all mineral interests, with the financial benefit of any exploration and production efforts ultimately returning to the government.
Mineral Vault tokens represent the first ever attempt to tokenize these interests, giving many global investors their first ever opportunity to diversify into this unique asset class.
Historically, mineral interest investment is notorious for requiring deep pockets and long investment time horizons.
Utilizing the power of the blockchain, Mineral Vault tokens can be transferred with ease while requiring historically low investor commitments.
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