A non-operated working interest is an ownership interest in an oil and gas well or property where the owner shares in production revenue but does not control day-to-day operations. Instead, an operating company manages drilling, development, production, and maintenance activities on behalf of all owners.

Unlike royalty interests, working interest owners are responsible for their proportionate share of operating expenses, capital expenditures, and future development costs.

Non-operated working interest owners may benefit from:

• Exposure to future drilling activity

• Participation in production revenue

• Potential reserve growth

• Long-term asset appreciation

However, working interests can also involve financial obligations that some owners may not anticipate, including:

• Drilling costs

• Workover expenses

• Operating costs

• Plugging and abandonment liabilities

• Revenue fluctuations tied to commodity prices

Many owners acquire working interests through inheritance, family transactions, or prior investments and eventually decide they no longer wish to manage the associated obligations. Others may prefer to simplify their portfolios or convert future cash flows into immediate liquidity.

Because every property is unique, understanding the economics of a working interest requires evaluating production history, operating costs, reserve potential, and future development plans.

Saddle Hill Energy actively evaluates non-operated working interests and provides confidential, no-obligation assessments for owners considering their options.