Due Diligence

Due Diligence

All auction properties are sold "AS IS, WHERE IS - WITHOUT WARRANTY EXPRESS OR IMPLIED". All well data and other information are provided solely as a convenience to Bidder without warranty or guarantee by Seller or Clearinghouse as to accuracy, completeness or otherwise. Bidders should review and verify the following information prior to bidding.

Production Data

Production information may be out of date, incomplete or inaccurate. Contact the Seller prior to bidding to verify that no changes have been made or have occurred to the well(s) since data packages were prepared. These changes may or may not be announced and/or posted.

Production Imbalances

The interest you are considering buying may be overproduced or underproduced as to allowables or in relation to other joint interest owner entitlements. Imbalances will result in increased revenues or liabilities in the future.

Preferential Rights

Properties may be subject to rights of first refusal, prior consents to assign or notifications of transfer. Review all leases, farmouts, operating agreements and other documents affecting the property.

Operator Approvals

As to properties, which are operated by Seller, potential buyers should determine what approvals, if any, are necessary to succeed as operator. If you are not capable of succeeding, or do not desire to succeed as operator, contact other joint interest owners to determine who may become the new operator.

Bonding Requirements

Some state or jurisdictional agencies require bonding to conduct business or hold oil and gas leasehold interests. Proof of having met such bonding requirements and of being an approved operator must be furnished before transfer of title.

Assignments

Conveyancing documents are generally available for review in advance of the auction. These instruments should be thoroughly reviewed, paying special attention to any restrictions, requirements or terms, that may or may not be announced.

Remember: There is no substitute for talking with the Seller, other partners, the Operator, and the purchasers of production. Verify information through independent sources before bidding.