When you hear someone use the word “landman”, what they’re referring to is someone who provides a number of different services for companies working in the oil and gas exploration industry. There are all sorts of jobs that a landman offers, and their general goal is to help oil and gas exploration companies do what they do best: explore for oil and gas. The amount of work oil and gas companies have to do is immense, which is why they regularly solicit the advice and services of companies offering landman services.
So what types of services do these companies offer them? Their primary service is to help gas and oil exploration companies secure mineral rights. This, of course, entails a lot of different things. For one, it means that the landman will negotiate the purchase of the mineral rights from whoever the oil exploration company is buying them from, whether that’s an individual landowner, a state government, a federal government, or even another business. They’ll represent the gas and/or oil company in the negotiations and work to get the best deal possible.
On top of that, they’ll perform the necessary research to determine what the value of the mineral rights deal should be. Let’s say an oil exploration company wants to purchase 5,000 acres from the state of Oklahoma. The landman services company they hire will do the requisite research to determine what the value of that purchase should be. They’ll look at past sales, they’ll research sales made by the state of Oklahoma, they’ll do some research about oil prices and where those prices are expected to go over the next couple of years (up, down, or stay about the same), and then they’ll come up with a figure. That lets the oil exploration company understand what the land is worth, and thus gives them a strong understanding of what the deal should cost when they go into negotiations. They can compare the price that the state of Oklahoma wants against the number that their landman came up with and determine whether or not they want to make the purchase.
Companies offering landman services will even do research to figure out who owns what land. Sometimes landowners and even governments aren’t clear about who actually owns the mineral rights to a certain piece of land, so the landman will do the necessary research to figure it out. This can give the oil exploration company a leg up on the private landowners and/or governments they’re negotiating the deal with. If the oil exploration company knows more about the land and who owns the mineral rights than the actual people or governments who own it, they’re in a good position to get a good deal on the land.
Landman companies like MAJR Resources exist to make the process of securing mineral rights, oil and gas titles, and oil and gas leases easier for oil and gas exploration companies. If you work in the oil and gas exploration industry, working with such a company is the best way to ensure you’re getting the best deal possible on all mineral rights purchases.