Mentor Capital Inc. has announced a significant expansion of its oil and gas interests in the prolific West Texas Permian Basin. In an all-cash transaction, the company acquired eight additional lots of royalty interest participations, boosting its overall asset portfolio by approximately 27.5%.

This strategic move underscores Mentor Capital's ongoing initiative to accumulate and develop its holdings in traditional energy resources, encompassing oil, gas, coal, and uranium. The recent purchase directly enhances the company's royalty streams, which generate revenue from oil and gas production without requiring the company to bear the associated operational expenses.

The acquired lots are integrated into Mentor Capital's existing Permian Basin portfolio, which now includes interests in three major pooled oil and gas projects. These projects collectively encompass approximately 131 producing wells, along with numerous potential development opportunities. The company anticipates a substantial lifespan for these assets, given the region's robust production capabilities.

The Permian Basin is renowned for its advanced drilling techniques, and Mentor Capital's projects are no exception. Current and future wells are projected to utilize multi-leg horizontal and directional drilling, featuring parallel lateral lengths that extend 2 to 3 miles. This sophisticated approach maximizes resource extraction and enhances long-term productivity.

The latest acquisition marks Mentor Capital's second recent investment in Permian Basin oil interests, reinforcing its dedication to build a robust inventory of classic energy assets. With 21,686,105 shares outstanding, this follow-on purchase has increased the company's portfolio of classic energy assets to a cost basis of 10.92 cents per Mentor common share. This metric highlights the tangible value that these energy assets represent for the company's shareholders.

Mentor Capital's focused strategy in the Permian Basin positions the company to capitalize on the region's significant energy potential. The Permian Basin is one of the most productive oil and gas regions in the United States, and its continued development is crucial for domestic energy security. By securing royalty interests, Mentor Capital ensures a steady revenue stream tied to the region's ongoing production.

The company's approach to acquiring royalty interests provides a low-risk, high-return opportunity. Unlike direct operators, royalty holders are not responsible for drilling, production, or maintenance costs. This allows Mentor Capital to benefit from the region's output without incurring the substantial capital expenditures associated with exploration and production.

This expansion into the Permian Basin aligns with Mentor Capital's broader vision of diversifying its asset base and capitalizing on long-term energy trends. The company's commitment to classic energy resources, coupled with its prudent investment strategy, positions it for sustained growth and value creation. The increased asset value per share underscores the company's dedication to delivering returns to its shareholders through strategic investments in the energy sector.