When our clients want to buy production or leasehold interest and want to know if the seller’s interest is encumbered, Ted W. Walters & Associates is quick to respond. We understand that completing a due diligence project always involves doing everything at once in order to meet critical dates – and the work must be accurate.
Our Inside Due Diligence includes a complete review of the Seller’s:
- Financial Records
- Well Records
- Computer records
- Inside title examination
- Prospect or area files
- Contract or deal files
- Title files
- Lease files
- Well files or Operating files
- Division order files
- Current obligations or necessary actions
Our Outside Due Diligence can include examination of:
- The physical premises being sold
- Environmental concerns
- Comprehensive Records Search in Official County, State and Federal Records, including but not limited to:
- Unreleased Deeds of Trust
- Financing Statements
- Lien Affidavits
- Mechanics & Materialmen’s Liens
- Federal Tax Liens
- State Tax Liens
- Notice of Lis Pendens
- Abstracts of Judgment
- Judgment dockets – County, District, State
- Mechanic’s and Materialman’s lien dockets
- Tax records for unpaid ad valorem or property taxes
- Statewide Uniform Commercial Code records for filings that affect the property
- Records of governmental agencies which own or have jurisdiction over the land in question such as state, federal and Indian land offices.
- Federal court records
- State oil and gas regulatory agencies (to confirm that the seller is in good standing with the agency and has posted the appropriate bonds, or if instruments such as pooling, pacing, location or production orders are not found in the seller’s files)
- Appropriate county or state records for partnerships, limited partnerships, corporations, assumed names, etc. which show the seller has properly qualified to do business in the state.
- Uniform Commercial Code Filings affecting a property
We also confirm leasehold working interests and net revenue interests. Our experience in the Courthouse enables us to conduct thorough research for hidden interests or provide asset/interest verification.
We can also review letter agreements, oil and gas leases, operating agreements, farm-in and farm-out agreements, assignments, and other pertinent documents. If the seller is not the operator, we research the lien status of the operator as well.