Oil Wells Carried Interest & Warranty Business For Sale

Business description

Oil wells - carried interest for sale with warranty!

We are a good sized regional oil company with some 14,000 acres under lease. We have accumulated a substantial inventory of existing wells some of which are known in the industry as "reworks" that we are looking to resell. The average time to put online is usually only a matter of weeks. Most of our buyers have their initial purchase price back in 7 to 9 months (at $70.00 oil) plus whatever time it takes to put the well online.

We own several drilling rigs and work-over rigs. We use our own work crews that are directly employed by us. In case you are interested; our model is to sell (usually) 65% carried interest based on a 100% NRI. This simply means that we pay all the ongoing expense to operate and maintain the well. There is a small transportation fee taken off the price of each barrel of oil, currently $3.50 per barrel plus state tax which is 3%. Those charges are taken off the top with the rest being sent to you, each month!

Here is an example of what ONE barrel of oil produced on a daily basis will look like on a monthly basis:

1 bpd production.............................................................. $70.00

Cost to transport ............................................................ $3.50

Tax ...............................................................................$2.10

Net per day .................................................................. .$64.40

Net per month .............................................................. $1932.00

65% Carried Interest (your interest) ......................... $1255.80


x 9 months (estimate price to purchase) ............. $11,302.20 +/-

Naturally, should the price move up (or down) these numbers will adjust. We DO NOT base
our prices on the price of oil unless you are buying actual production. The price cited above,
again per example, is probably going to be conservative (high). The real price is probably
going to be more in line with a $10,000.00 purchase price though every situation is a bit
different.

If you want, we can put you on our "HOT LIST" to let you know when we get in an 'odd
lot' that is sometimes priced at a fire sale. We have these come up for many good
reasons and those reasons are fully disclosed when we send over the offer to purchase.

Also, we have identified well sites identified and ready to drill. Should you wish the potential
of an even GREATER return, we can sell you a direct interest in a new well (to be drilled).

We have been doing this for over 30 years. We know what we are doing and have the track-record to back up our statements. All the people associated with this firm carry a reputation established over decades and in most cases
are considered among the top tier in the area (in their respective field(s).

Regarding the actual purchase, to be clear: In ALL cases, you are the buyer / owner of the well(s) and can resell them at ANY TIME at your discretion.

WARRANTY: Depending on what you buy, we will warrant the production (not the price/sorry). If you are unhappy with your purchase, no matter the reason, WE WILL BUY THE WELL BACK. If you hire us to drill a new well that you are buying, we
will cover dry hole cost(s) on a three well purchase. Most of our wells are 1600 to 1800 feet and are drilled and completed very quickly. We will put all of the above (with more detail) in a written and signed contract.

We are located some two hours out of Nashville and you are STRONGLY ENCOURAGED to pay us a site visit BEFORE YOU COMPLETE THE PURCHASE (though it is not required). This offering will withstand any level of due-diligence, so by all means, bring along your industry professionals. Conference calls with the operator and / or our geologist can also be arranged prior to a site visit or in lieu of such visit.

We have sold individual oil properties for as little as $7500.00 to in excess of $200,000 (each) and will work with you to size up or down whatever you need. As an example, we currently have one package out that is $27,000,000.00 . The wells / sites are sold on a first-come-first-serve basis.

Your SERIOUS inquires are invited. Upon your inquiry, you will be emailed a writeup giving full disclosure of who we are
and everything about our program. In return, please include your complete name, address, current phone number(s) and
email(s).

Thanks for taking the time to read this ad.

Property information

Location:

The well sites cover six counties. Here are a few: Morgan, Scott, Fentress and Overton.

Premises details:

The wells are normally convenient to services; electrical, pick-up and are serviced on an ongoing basis.

Other information

Expansion potential:

We have a fairly constant flow of new leases that come available. As we need to have substantial cash in reserve
to secure the purchase; that combined with our normal overhead makes the sale of the interest necessary.

Competition / Market:

Does not apply in most cases.

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

We can co-op on the sale if needed.