Virtual auctions aim to bring transparency to oil and gas royalty markets
(WO) - Oil-Royalties has released an overview outlining how its Virtual Auction Marketplace is changing how buyers evaluate and acquire U.S. oil and gas royalty interests, as investors increasingly seek more transparent and standardized transaction processes.
The platform, operated by Oil-Royalties, uses a rules-based, fully digital auction model designed to reduce information gaps that have historically characterized royalty transactions. All assets listed on the marketplace are presented using standardized data formats, consistent valuation inputs and uniform bidding rules, according to the company.
Founder and Chief Executive Ronald Achs said the model addresses long-standing challenges in royalty acquisitions, including inconsistent disclosures and subjective pricing. “Buyers have always struggled with fragmented data and opaque pricing,” Achs said, adding that the marketplace is intended to provide a level playing field for qualified participants.
Before participating in auctions, buyers must complete a standardized acquisition agreement, which the company says verifies participants and establishes common terms for bidding. Listings include consistent data fields and access to Oil-Royalties’ proprietary Max Bid Value (MBV) algorithm, which is designed to help buyers establish valuation-based bidding limits.
Once a bid is accepted by a seller, the system initiates an automated transaction workflow, including execution of a letter of intent, purchase and sale agreement and closing documentation routed to escrow. Oil-Royalties said the process is intended to provide greater transaction certainty, audit-ready documentation and predictable timelines.
The company positions the Virtual Auction Marketplace as part of a broader effort to modernize the U.S. royalty market through automation and online access, enabling buyers worldwide to participate in acquisitions without traditional broker-led negotiations.
Oil-Royalties operates on a subscription model for sellers and does not charge transaction commissions, the company said.
