A prized collection of exclusive mineral right leases just north of Hays, Kansas provides immediate cash flow from steady oil production. This opportunity includes the mineral rights for 27 properties totaling 4,305 acres. These wells are in the Arbuckle formation, which is the deepest layer of rock underlying much of Kansas that is rich with oil. Average depth is approximately 3,500 feet.
Located in Rooks and Ellis Counties, 2018 oil production was 14,854 barrels, with total revenues of $862,294.
There are 41 registered oil wells, plus 8 SWD wells on the properties, which were drilled as early as 1960, and as recently as 2015. Pumps, holding tanks, structures, and piping are all included in sales price.
Only one well has been drilled on most of these leases, leaving a large inventory of reserves and additional drilling potential. Currently, a few wells are needing minor repairs. Seller estimates that with simple repairs the production will increase substantially.
The lease agreements are easily assignable for transfer to buyer. Lease terms last indefinitely for a long-term opportunity.
Market price of crude oil is the primary non-controllable factor. The operation can be managed remotely with a local pumper to regularly service the equipment. The oil production continues 24 hours a day, 365 days per year. Amortizable capital investments for new drilling and production enhancements can be performed any time Buyer chooses.
Seller is very motivated and will consider reasonable offers!