There is a lot of info here as I like to be thorough, so take you time. We can follow up once you have time to fully read and digest.
If you are interested beyond this info, I can provide a spread sheet of our returns the last 4 years, a map of our property and our PSA with all the 90 legal descriptions of the tracks of land that would ultimately have a portion of filed under your name on deeds between the 3 court houses.
Major bullet point takeaways are (these 1st 6 might be of most interest to you):
-This is a completely passive ownership/investment without ties to expenses, costs, work on your part, liability or headaches that cash flows monthly “mailbox money” (similar to a triple net lease)
-Property is priced to yield/return an expected 10-20% annually for generations to come with KNOWN increased activity of drilling schedules through 2023 making 2022-2024 much higher than average return years
-I have personally bought $100K from my IRA of this property myself for my kids and I without tax consequence 9 months ago. I don’t sell something I would not buy myself. If you’d like to background check me personally, my personal website with testimonials and other info is robertboudwin.com
My investment 9 months ago only steadily increases in returns each month. Lowest return EVER was before I bought in one month in Covid when things were at there worst with a 2% annualized return and we returned 8% annualized last August, 2020 when oil was only $37. Oil is over $70 now.
-It is Real Property and considered “in kind” so it is perfect for 1031 exchanges
-Owners’ July returns were double that of June due to new activity and wells drilled with back pay
DEEPER DIVE w/ Some other important info:
-There are 170+ shale wells actively cash flowing now (PDPs) Proven Developed Producing that will continue to for many year and then will have secondary and ultimately third recoveries with re-fracking, water floods or CO2 flood done on them making them profitable for decades (maximum that has ever been derived from the original oil in place under exist technology is 40% after 30-40 years leaving 60% to still remaining to be extracted with emerging technologies. This property will is expected to yield for generations, not decades to come.
-The BIG key with this property is that on top of the 170+ PDPs there are 250 PUDs (Proven Undeveloped) spots yet to be drilled that oil companies have just been waiting to drill out when oil goes up high in price making it more profitable to take to market. These 250 PUDS are a question of when, not if.
-There is a 15% depletion allowance for the life of ownership every year meaning you don’t pay taxes on the top 15% of your yearly return
-Property is sold complete with deeds as a fractional interest of just shy of 19,000 acres just outside of College Station in the Eagle Ford Shale with all Tier 1 property with ownership to the core of the earth at all levels sold
-Our company and its principals owner is under JBL Energy Partners owner by Jason Lane (old friend of mine who used to be a Rockets suite holder for years) who is 2nd generation land man by trade and the company can be seen at: jblenergypartners.com with more in depth background on all our leadership individuals (bios, past projects, etc).
The property had no shale wells 7 years ago and now has 170+ PDPs (current wells actively producing oil from the ground as we speak and paying royalties monthly to owners), 9 Ducts (about to be turned on, but already drilled), 9 new permits (about to be drilled) & 250 PUDs (proven oil just waiting to be drilled for and extracted) just at the shale level not even considering the Austin Chalk and Buda levels and Spear Minerals owns and sell its subsurface property rights ALL to the core of the earth at all levels. We have specific info that one of the drillers is about to break ground on 3 new wells and turn on 4 new ducts all in the next 2 months and that is just one of the three major drillers. There is SIGNIFICANT increase in production and returns when new wells come on-line. New wells that came on line in May spiked July returns by DOUBLE compared to JUNE returns.
Even though we went on sale last August when oil was $37 and topped out two months ago at $77, we have not repriced yet even though oil has gone up by more than 100%. I can provide you past performance, current performance and expected performance with oil going to $100 by end of the year predicted by many financial experts (and if so returns will are predicted between 32-35%). This property is priced to yield solid average predicted years of 10-20% for decades to come and generations beyond.
If you are interested in buying minerals, now is the time as oil is almost certainly going up higher than already, our inventory will sell and at some point Jason Lane (Spear Owner) will almost certainly have to increase the price of the land due to the returns being so much higher with more drilling and higher oil prices. We KNOW of 7 new wells coming on-line in the next 2 months from just one of the three major drillers alone and have the drilling schedule through 2023 for that driller. Point is THERE IS A LOT OF NEW ACTIVITY AND DRILLING happening that will make 2022-2024 especially HIGHER than average years.
Bottom line on this stuff is that it is a perfect way to diversify a portion of your retirement (IRA) or other funds away from the volatility of the market/mutual funds with VERY low risk, safe and secure with current, past and future predicted double digit returns in real property real estate that is turn key for you (completely passive “mailbox money”). Since it is REAL PROPERTY it never really goes negative (our worst return was during Covid when NO ONE was traveling or manufacturing & land owners still got an annualized 2% that month).
OIL UPDATES from Non-O&G Financial Industry & Academic Experts
Full Article from Reuters.com 2/9/21 (concerning why more oil and drilling is anticipated on Spear Property after the reorganization of Chesapeake who is actively drilling on Spear Property and other market factors):
Article from Barron’s 2/25/21 (concerning price of barrel of oil headed to $100):
Article from CNN & JP Morgan from 6/18/20 (concerning prediction of price of a barrel of oil headed to $190 by 2025):
LASTLY, to address Green Energy Future Expectations this is a short YouTube video from Mark Mills who is a Senior Fellow at the Manhattan Institute: