FAQ

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What is Elmnts?

Elmnts is a platform for tokenized commodities first focused on providing investors access to mineral rights and oil & gas royalties. By leveraging blockchain technology, Elmnts transforms traditional investments in mineral rights into digital tokens, making these investments more accessible, transparent, and secure. This innovative approach connects accredited investors with unique opportunities in the oil and gas sector, revolutionizing how these assets are managed and traded.

Why are we building on Solana?

Solana’s capacity for scalability, instant global transactions, and low fees makes it the ideal landing spot for handling the transactions involved in tokenized commodities.

Why are we putting mineral rights on the blockchain?

With the mineral and royalty interests market valued at $700 billion, Elmnts is pioneering the tokenization of these assets on-chain, making them accessible to the web3 community. By leveraging blockchain, Elmnts creates a direct connection between builders, investors, and users, eliminating the need for intermediaries. Tokenizing mineral rights opens up investment opportunities to a broader range of investors by lowering fees and increasing accessibility.

When do I start getting returns?

Returns typically begin the month after the effective date of your investment. For producing wells, investors can expect monthly distributions, as oil companies send out run checks monthly that reflect the prior month's oil sales. While some assets may not be producing yet, they are acquired with the expectation that production will start soon, so distributions will be forthcoming. This ensures that returns start promptly once production is underway.

How are leases acquired?

Leases are acquired through a variety of methods, including auctions, private sales, and direct negotiations. Elmnts leverages extensive industry networks and expertise to identify and secure valuable leases. This involves tracking active leasing activity in specific areas, evaluating potential sites, and negotiating terms with landowners or mineral rights holders. By partnering with drilling companies, Elmnts gains access to properties and extraction processes, ensuring that the leases are both strategically selected and managed effectively. This approach allows Elmnts to build a promising portfolio of mineral rights.

Does Elmnts take a stake in the lease as well?

Yes, Elmnts takes a stake in the lease. Even if we didn't originally sign the lease, our predecessor did, and as the current owner of the mineral rights, we are bound by its terms. In the future, when we acquire unleased minerals, we will sign new leases when approached by operators, ensuring active and profitable engagements with them.

What happens if the operator doesn’t decide to drill?

For the leases acquired by Elmnts, production already holds the lease because the wells have been drilled. These wells must produce in "commercial paying quantities'' to maintain the lease. If an operator decides not to drill further, they may either try new extraction methods, sell the lease, let it expire, or plug the wells. However, the likelihood of this happening is very low, as the operators have already drilled wells, indicating a strong potential for successful production.