EnergyNet is an inappropriate tool for one-time fee owner sellers, especially if they are not institutional owners or those familiar with the business. A mineral owner not familiar with their holdings would have a difficult time establishing a reserve price and properly developing a prospectus. Further, the seller's agreement with EN is 19 pages, and here is the commission they charge:
Between $1 and $100,000 10.0%
$200,000 9.50%
$300,000 8.75%
$400,000 8.25%
$500,000 7.75%
$600,000 7.25%
$700,000 6.75%
$800,000 6.25%
$900,000 5.75%
$1,000,000 5.25%
Depending on the sophistication of a broker, they can provide services above what EnergyNet can, such as a reviewing the chain of title to confirm what the mineral owner possesses, provide deed form advice, and create a dialogue with the buyers instead of an ebay style auction. As for 18,500 registered bidders, if a broker is worth their weight they know the top buyers in a county, and they base their compensation on a commission. Not to mention a lot of those EN auctions end with the reserve not met. EnergyNet's bread and butter is massive working interest packages. In fact, I recommended EN to someone in the post below looking for that type of deal. In the case at hand though, an inappropriate tool.