What we own
A core of cost-free minerals and royalties, a bounded share of working interests bought below proved developed value, and a set of rules we do not bend. Oil and natural gas, across several basins.
Interest types
Ownership of the minerals under the land. Receives a royalty on everything produced, forever, with no cost exposure.
A share of production revenue carved out of the mineral estate. No costs, no operations.
Overriding royalty: a share of revenue carved out of the operator's lease. Cost-free, but ends when the lease ends.
Non-operated working interest: we pay our share of drilling and operating costs and receive our share of revenue. Another company operates.
Operated working interest: we are the operator — we run the wells, control the costs, and can drill new ones.
Cost-free interests are always the majority of PV-10. Working interests together are capped at 50% and operated working interests at 35%. The acquisition engine refuses any closing that would breach a cap.
Oil and gas
Oil and natural gas prices move on different cycles. Owning both smooths cash flow; a gas well in Appalachia and an oil well in the Permian rarely have a bad year together.
Valuation not available.
No producing properties yet.
Underwriting
Price sets the return. The engine finds and prices; people verify title and sign.
Maximum bid = the lesser of a target multiple of next-twelve-month cash flow and a target percentage of PV-10 — adjusted for gas weighting, decline rate, operator quality and organic upside. Bids are priced at the live NYMEX strip, never at a price we hope for.
| Interest | Max multiple of NTM cash flow | Max % of PV-10 |
|---|---|---|
| Minerals, royalties, ORRI | 5.5× | 120% |
| Non-operated WI | 3.5× | 90% |
| Operated WI | 3.0× | 80% |
Operated working interest
Most royalty vehicles never touch a wrench. We do — within a hard limit — because operating is where a small company can add value that the market does not price.
Pumpers, electricity, chemicals, water hauling, repairs. Lease operating expense is the first thing deducted from an operated well's revenue, and the first thing we can control.
Workovers and recompletions on a mature well are often the best-returning dollars in oil and gas. As operator we choose which to do and when, rather than being billed for someone else's programme.
When a well reaches its economic limit it must be plugged. We forecast that cost per well, accrue it against NAV from the day we buy, and report it. Nothing is hidden in a footnote.
Operated fields come with drillable locations, gathering and infrastructure we control. Buying proved production at a low multiple and adding value through operations is the oldest trade in the industry — kept to a bounded share of the company.
Portfolio today
From the property register. Purchase prices are not shown; the current value of every interest is in NAV.
No producing properties on the register yet.
Also on the balance sheet
One thing we own is not a well, and we disclose it prominently.
No marketable securities held.
Securities are carried in NAV at their most recent mark and monitored against the Investment Company Act test: investment securities must stay below 40% of total assets (excluding cash). Structure and the 40% test →
Illustrative only. Nothing here is a forecast or a guarantee. Oil and gas interests are wasting assets: production declines as reserves are produced, distributions vary and include a return of capital, and NAV per share is an estimate that will change. Nothing on this page is an offer to sell or a solicitation of an offer to buy any security.
Every NAV run publishes its price deck, reserve hash and methodology.