Oil Production Business for Sale
1,200+/- Acres — With 50 Existing Oil Wells
Absentee Ownership Potential
As a company, our focus has been on acquiring older wells that have already lived through their steep decline curves and have settled at lower reliable production levels. Individually, their output may seem modest, but the combined production from a number of these wells is anything but insignificant. With this approach, there’s no need for expensive new drilling, fracking, or massive capital injections. The reservoir has already been proven; the infrastructure is in place. Yield is steady, decline is slow, and surprises are rare.
Our company, with 50 existing oil wells and all associated equipment on eight oil leases totaling 1,200+/- acres, is located on the Tennessee/Kentucky border. This region has been known for having oil from as far back as the 1800s when oil wasn't wanted but they kept hitting it and ruining salt wells. Commercial oil production has been steady here since the 1940s, and the region is known for its consistent, long-term production.
As a business, the story gets compelling when you consider that our portfolio of 50 wells is spread across multiple leases and oil fields for natural diversification and is capable of giving us a combined, steady output of 28 to 30 barrels per day. Couple this with rising oil prices and the math of a well-managed stripper well company is hard to beat.
Now is the perfect time to invest in these proven, low-risk oil assets as the cost of oil leases hasn't gone up with the rising oil price. This creates a window of opportunity to secure our asset-rich business at yesterday's prices. In fact, this company is priced at just $20,000 per well and also includes ownership of the 1,200 acres of oil leases. The cost just to equip each of these wells today would be more than the $20,000 per well that we are asking, never mind the cost of lease acquisition and drilling.
The company is completely managed by experienced, hands-on oil workers that want to stay on as minority partners and operators. This makes it so the new owner can be completely absentee if they choose, totally your choice of just how involved and active you would like to be.
Offered at $998,000 for full asset acquisition. We are also open to a strategic partnership starting at $900,000 for a 90% proportional equity stake, with our team investing $98,000 for the remaining 10% and to stay on as active field operators.
We realize that this is a lot of money, so with this in mind we will consider investments beginning at $300,000 for proportional equity interest of 30 percent. However, due to the cyclical nature of the oil business, no financing is offered or allowed.
All transfers of ownership will be legally executed by our counsel to ensure a seamless, fully documented transition.
We're friendly, so if you’re interested and qualified, please don’t hesitate to reach out to us.
