An oil and gas lease broker can be an independent landman. This landman works with many operators and companies in a geographical area in which the landman is very familiar and has expertise. The landsmen knowledge of the area puts them miles ahead of other production companies and their in-house landman, who are looking for land that is adjacent to in the same geological structures. When oil and gas has been located and produced in these areas, then there are excellent prospects for achieving good production in the adjacent areas. The independent landman represents mineral owners to oil and gas companies. When brokering an oil lease sale, the landowner becomes a valued client to the landman.
Landowners typically have very little knowledge of the oil and gas industry and companies. The landowner may not know that the exploration unit of an oil and gas company is looking in their area for good mineral prospects.
Most landowners, especially absentee owners, are not aware of developments and production in their area. Few landowners are able to assess the geological significance of the land, its structure, and the oil and gas beneath the surface. Therefore, the owners receive solicitations by mail for leases of their mineral rights. The landowners do not understand that they may be receiving a low and mediocre offer that they will loose money on and have decreased royalty rights and payments.