Mentor Capital Wins Auction for Permian Basin Oil and Gas Royalties

Rhea-AI Summary

Mentor Capital (OTCQB: MNTR) has acquired 25.127 net royalty acres in a 71-well pooled project located in the West Texas Permian Basin through an all-cash transaction. The purchased royalty stream equals 12.5% of oil and gas revenues with no expense obligations.

Current production from Mentor's portion averages 10 barrels of oil and 24,000 cubic feet of natural gas per day, based on six-month records. The overall pooled project generates approximately $1,000,000 in daily oil and gas production.

The project includes 16 undeveloped well locations in the Dean and Wolfcamp formation, pending development by Diamondback E&P These wells are expected to utilize multi-leg horizontal and directional drilling with 2-3 mile lateral lengths. This acquisition increases Mentor's classic energy assets to 8.1 cents per common share, with 21,686,105 shares outstanding.

Positive

• Acquired 12.5% royalty stream with no expense obligations
• Current production of 10 barrels oil/day + 24,000 cubic feet gas/day
• 16 additional well locations pending development
• Part of larger $1M/day production project
• All-cash transaction indicates strong liquidity

Negative

• current production relative to total project size
• Development timeline for 16 remaining wells uncertain

25 Net Royalty Acres Purchased as Part of a 71 Producing Well Program

PLANO, Texas--(BUSINESS WIRE)-- 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250327975665/en/

For further information, contact:

Mentor Capital, Inc.

Chet Billingsley, CEO

(760) 788-4700

Info@MentorCapital.com

Source: Mentor Capital, Inc.

FAQ

What is the daily production value of Mentor Capital's (MNTR) newly acquired Permian Basin wells?

Mentor's portion produces 10 barrels of oil and 24,000 cubic feet of natural gas per day, based on six-month average production records.

How many undeveloped well locations remain in MNTR's Permian Basin project?

16 well locations in the Dean and Wolfcamp formation remain undeveloped, pending development by Diamondback E&P

What is the royalty percentage MNTR acquired in the Permian Basin deal?

Mentor Capital acquired a 12.5% royalty stream 'off the top' of oil and gas revenues with no expense obligations.

How does the Permian Basin acquisition impact MNTR's asset value per share?

The acquisition increases Mentor's classic energy assets to 8.1 cents per common share, with 21,686,105 shares outstanding.