Plano-based Mentor Capital said last week it purchased 25.127 net royalty acres in a 71-well producing project in Permian Basin. Mentor said its royalty stream is equivalent to 12.5 percent of oil and gas revenues for its acreage. The average production for Mentor’s portion of the project is 10 barrels of oil per day plus 24,000 cubic feet per day of natural gas. And 16 well locations in the Dean and Wolfcamp formations remain in project inventory pending development by major operator Diamondback.
Mentor’s announcement March 27 said, “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.