This prized collection of exclusive mineral right leases in Eastern Kansas provides immediate cash flow from steady oil production. The business includes the mineral rights of 18 properties totaling 1,992 acres of shallow sand and limestone oil fields.
Currently there are 200+ operating registered wells. Water flooding injections are an excellent option for increasing performance. Pumps, holding tanks, piping, and leasehold improvements are included in sales price. These lease agreements are easily assignable for transfer to buyer. The lease terms last indefinitely for a long-term opportunity. Conveniently located in neighboring locations, these are properties that rarely become available for others to acquire.
Unlike other businesses, this operation does not involve selling to customers, advertising expense, promotions, credit card processing, customer receivables, refunds, and trade shows. A 3rd party petroleum engineer recently estimated there’s over 400,000 barrels of proven, undeveloped reserves on this property. Production is averaging 35 barrels per day. Last year’s weather conditions slowed production, as wells were difficult to reach for monitoring. Seller has estimated sales and cash flow based on current market conditions. When the oil prices bounce up you can turn up production for additional income.
The operation can be managed remotely with a local maintenance manager to regularly service the equipment. The oil production continues 365 days per year. Amortizable capital investments for new drilling and production enhancements can be performed any time Buyer chooses. Check with your CPA for favorable tax advantages with this oil and gas investment.