TOKEN MINERAL COMPANY, LLC (TokenMineral or TMC), based out of Houston, Texas, is a newly formed Wyoming Limited Liability Company that is funding Oil and Gas Minerals and Royalties Acquisitions through Asset Backed Security Token.
Token Mineral’s unique structure allows investors to participate in the growth of the company while receiving an immediate return through the Tokenized process.
Token Mineral’s Token Royalty Program is a unique structure allows investors to participate in the production of oil and natural gas without the liabilities associated with the drilling and operation of the wells.
Oil and gas royalties are some of the most valuable part of the production process. When a company wants to drill on a property, they will lease the mineral interest and pay the landowner or mineral owner a “Royalty” or a percentage of the oil and gas extracted from the well.
The company spends the money to drill and produce the well and the royalty owner is paid directly from the gross production without the expenses of drilling or operating the well. The Token Royalty Program allows Token holders to receive the same benefit. Sometimes these same companies will sell a portion of their revenue stream from their lease with an Overriding Royalty that has similar benefits to a Mineral Royalty. Token Mineral acquires Mineral Royalties and Overriding Royalties which are then “Tokenized” through the Security Token Offering (STO).
Benefits of Investing in Oil and Gas Royalties
- Reliable Income. Long considered a mailbox investment (mailbox money), royalties are paid first from a well’s pre-expensed production revenue. Royalty owners typically receive 12-25% of cash flow after production taxes have been paid.
- Long-term Passive Income. Royalty payments are made for as long as an asset produces, which can be upwards of forty years or more in some fields.
- No Expense and/or Liability. Royalty owners are not subject to capital calls or operator assessments; they are not responsible for any costs associated with the drilling of wells nor costs related to production, transportation, marketing, and/or ongoing maintenance of oil and gas properties. In addition, Royalty owners bear no drilling or operating liabilities.
TRUST: Blockchain technology provides both the Issuer and the Investor an immutable digital contract (SMART CONTRACT). Actions, plans and operations of the token are coded into the Smart Contract allowing a firm set of Autonomous actions and Governance of future activities. The Blockchain creates a shared digital ledger system for rapid distribution of funds and transparency of processes.