Karnes County

• The net mineral acres are located on 7 parcel tracts in Karnes County, Texas. There are 3 operators, Magnolia Resources, Marathon Oil and Gas, and Devon for the 82-producing oil, gas, and LNG wells.  We were notified recently that another well will begin drilling on the acreage with Marathon Oil and Gas with no additional cost to the royalty interest owner.
• Magnolia Oil and Gas Corporation (NYSE: MGY) Magnolia’s South Texas asset platform includes a well-delineated, low-risk position in the core of Karnes County and a position in the Giddings Field, a re-emerging oil play with significant upside. Together, these positions comprise approximately 460,000 net acres targeting two of the top oil plays in the United States.
  

Karnes County: Core Eagle Ford and Austin Chalk

• World-class acreage footprint located in the core of the Eagle Ford, substantially de-risked
• Full field development allows for operational efficiencies and improved performance
• Well known, repeatable acreage position targeting multiple benches and representing some of the best economics in North America
• Marathon Petroleum Corporation (NYSE: MPC) At Marathon Petroleum, they are proud of the role they play in helping meet the world’s growing energy needs while steadfastly adhering to the values we place at the core of our business.  Over the past 137 years, and as they continue to innovate and evolve, their Core Values have been and will always be at the heart of their success – guiding the way they treat each other and all of their stakeholders.  Theye believe that how they perform their work holds equal importance with the work they perform.
• Devon Energy Corporation (NYSE: DVN) Devon Energy is a leading independent oil and natural gas exploration and production company. Devon's operations are focused onshore in the United States. The company's portfolio of oil and gas properties provides stable, environmentally responsible production and a platform for future growth. Devon's third quarter of 2024 daily production was approximately 335,000 barrels of oil, about 194,000 barrels of natural gas liquids and nearly 1.2 billion cubic feet of natural gas.  Because the business of exploring for, developing and producing oil and natural gas is capital intensive, delivering sustainable, capital efficient cash flow growth is a key tenet to our success. While their cash flow is highly dependent on volatile and uncertain commodity prices, they pursue their strategy throughout all commodity price cycles with four fundamental principles:
  • Proven and responsible operator 
  • Premier, sustainable portfolio of assets
  • Superior execution 
  • Financial strength and flexibility 
• Karnes County, Texas is one of the most prolific oil, gas, and LNG producing counties in the state of Texas. The 7 tracts development began in 2014 and the operators are still developing the acreage play.
• The 82 wells average sales are 119,238 BOPM (barrels of oil per month), 858,394 MMcf/month, and 174,318 barrels in LNG sales. 
• Royalty Interest ownership is one of the most conservative investments in oil and gas because you own the minerals underneath the ground for life and you are paid a % of the revenue stream from production on the acreage. Your monthly passive income stream has tax benefits.
• Investing in drilling projects are speculative and very risky for the investor because if the well is not commercially viable or a marginal producer could cause the investor to lose his/her entire investment.
• A horizontal well can be fracked 3 times throughout its life which extends the life of the well and the reserves to be produced. Once the operators make the decision to re-enter the wells and frack for the 2nd time and 3rd time, this is no cost to a royalty interest owner and could dramatically increase the monthly and annual passive income as well as the production lives of the wells.
• As oil, natural gas, and LNG continues to increase in price, the passive income from the producing wells increases.
• Diversification in royalty interest gives your portfolio more stability and passive income and creates another strong investment in your portfolio without putting you in a risky situation for the monthly and yearly passive income for decades.