Mentor Capital, Inc has announced a significant acquisition in the heart of the prolific West Texas Permian Basin, securing 25.127 net royalty acres within a 71-well producing project. This all-cash transaction boosts its portfolio of classic energy assets encompassing oil, gas, coal, and uranium.

The purchased royalty stream grants Mentor Capital a 12.5% "off the top" share of oil and gas revenues generated from its acreage, a lucrative position that absolves the company from any operational expenses. According to the company's records, the average production from Mentor's portion of the project over the past six months has yielded approximately 10 barrels of oil per day and 24,000 cubic feet of natural gas per day.

The broader 71-well pooled project, managed by major operator Diamondback E&P LLC, boasts an impressive daily production of roughly $1,000,000. The project's longevity is considered substantial, further enhancing the attractiveness of Mentor's investment. Notably, the project also includes 16 potential well locations in the Dean and Wolfcamp formations, currently in inventory awaiting development. These future developments are expected to leverage advanced drilling techniques, including multi-leg horizontal and directional drilling, with lateral lengths extending 2 to 3 miles.

This acquisition aligns with Mentor Capital's ongoing strategy to expand its holdings in traditional energy sectors. The company's focus on acquiring and building its inventory of classic energy assets underscores its belief in the long-term value of these resources. With this Permian Basin purchase, Mentor Capital's portfolio of classic energy assets now represents 8.1 cents per Mentor common share, based on the company's 21,686,105 outstanding shares.

The Permian Basin, known for its rich hydrocarbon reserves, continues to be a focal point for oil and gas exploration and production in the United States. The region's advanced drilling technologies and favorable geological conditions have contributed to its sustained productivity, making it a prime target for companies seeking to capitalize on energy resources. Mentor Capital's strategic acquisition positions the company to benefit from the ongoing production and potential future development within this highly productive region.

The company's decision to pursue royalty interests, rather than direct operational involvement, provides a stable revenue stream without the associated capital expenditures and operational risks. This approach allows Mentor Capital to focus on asset acquisition and portfolio growth, leveraging its financial resources to capitalize on opportunities within the energy sector.

Mentor Capital's commitment to building its classic energy portfolio reflects a long-term perspective on the value of these resources.