NOW AVAILABLE — three exclusive mineral right leases in Eastern Kansas which will provide immediate cash flow from steady oil production. The business includes the mineral rights on properties totaling 419 acres of shallow sand and limestone oil fields.
Currently there are 30+ 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. Production is averaging 8 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.