Mentor Capital Wins Auction for Permian Basin Oil and Gas Royalties
25 Net Royalty Acres Purchased as Part of a 71 Producing Well Program
PLANO, Texas–(BUSINESS WIRE)–$MNTR #Covid–Mentor Capital, Inc. (OTCQB: MNTR) announced that in an all cash transaction it has purchased a 25.127 net royalty acre portion of a producing 71 well pooled project in the West Texas Permian Basin. Mentor’s purchased royalty stream is the equivalent to 12.5% “off the top” of oil and gas revenues for its acreage, with no responsibility to pay any expenses. During the preceding six-months, the average production for Mentor’s portion has been recorded as 10 barrels of oil per day, plus 24,000 cubic feet of natural gas per day. Additionally, 16 well locations in the Dean and Wolfcamp formation remain in project inventory pending development by the major operator, Diamondback E&P LLC.
The pooled project that Mentor participates in has total oil and gas production of approximately $1,000,000 per day and is expected to have considerable life. As is now common in Permian oil fields, some existing and the 16 possible wells are projected to utilize multi-leg horizontal and directional drilling with parallel lateral lengths reaching out 2 to 3 miles.
This oil interest purchase is part of Mentor Capital’s ongoing program to acquire and build up its inventory of classic energy assets in oil and gas, coal and uranium businesses. On a cost basis, this purchase increases Mentor’s portfolio of classic energy assets owned to 8.1 cents per Mentor common share, with 21,686,105 shares outstanding.
About Mentor Capital: The Company believes that a healthy, profitable and growing classic energy sector of oil and gas, coal and uranium are vital to a vibrant United States economy. Mentor seeks to support this hoped for future by bringing the advantages of greater liquidity and higher valuations sometimes found in the public markets to founders seeking exit or growth, to outside investors looking for profit, and ultimately to Mentor Capital Inc. (MNTR) shareholders seeking a good return. Management believes that in this environment the best outcomes for all, including Mentor shareholders, will come by providing balanced, fair and creative financial solutions to all parties as the Company grows its position in the energy world.
This press release is neither an offer to sell nor a solicitation of offers to purchase securities.
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning financial projections, financing activities, corporate combinations, product development activities, and sales and licensing activities. Such forward-looking statements are not guarantees of future results or performance and are sometimes identified by words of condition such as “should,” “could,” “expects,” “may,” “intends,” “seeks,” “looks,” “moves,” or “plans” and are subject to a number of risks and uncertainties, known and unknown, that could cause actual results or direction to differ materially from those intended or anticipated. Such risks include, without limitation: delays in finding and purchasing suitable investments at favorable prices, nonperformance of investments, partner and portfolio difficulties, potential delays in marketing and sales, problems securing additional financing, the potential of competitive products, services, and technologies, difficulties experienced in program development, in recruiting and retaining key and knowledgeable personnel, in protecting intellectual property, and the effects of adverse worldwide economic events, such as government regulations, energy regulations, and inflation. Further information concerning these, and other risks is included in the Company’s Form 10-Q and Form 10-K filings, which, along with additional very important details on the Company, can be found here: https://ir.mentorcapital.com/all-sec-filings
The Company undertakes no obligation to update or revise such forward-looking statements to reflect new information, events, or circumstances occurring after the date of this press release.
Contacts
For further information, contact:
Mentor Capital, Inc.
Chet Billingsley, CEO
(760) 788-4700
Info@MentorCapital.com
