Buying and Selling Producing Oil Fields

1-Hi Sonny, thanks for your time today! Could you tell our readers what your company does?

Pumpjac properties list oil and gas leases for sale and finds buyers for these properties. We are the exclusive sales agent for Majestic Management Corporation in Glasgow Kentucky.

2-How did you get into the business?

I am the owner of Entrivac Corp in Louisville Kentucky. We rebuild industrial vacuum pumps for refineries and gasoline terminals nationwide. A group of oil men in Texas, which I have known for years, ask me to perform due diligence for a oil property in Kentucky. I visited the oil field, made my report, and a few weeks later, they told me they were not interested, however; I was contacted by the selling agents of the Kentucky property. They liked my style and background and wanted me to consider selling oil and gas properties for them. That was one property and a year ago, and now we have listed nine properties nation wide totaling well over $1,000,000,000.

3-Are there any trends you are seeing that might not be apparent to our readers?

Well, producing properties with large reserves with good documentation are the best sellers now, however the best deals for the money are often the non-producing properties.

4-Where are the hottest markets for new oil and gas leases or production?

Actually everywhere. But of course the oil boom areas such west Kansas are especially so.

5-What are the valuation metrics to consider when evaluating an oil and gas lease?

Production, reserves, good documentation by the owner, and a clean operation with no open wells, spills, etc.

6-For level production, what are you seeing sellers get per barrel? $20K? $30K or more?

I do not get involved with that end of a sellers business. What they get for their oil does not interest me as far as selling the oil field.

7-Is this recent oil boom here to stay or just a speculative bubble?

Because the demand is here to stay and getting larger , because the world oil reserves are on a downward trend, (by most counts) the crude oil prices will be affected likewise.

8-How is your company different from others in the market?

We do not auction oil and gas properties, we do not operate regionally, and we do not specialize in any oil and gas field size ranges

9-Where are there still values in terms of buying production or leases? KY, IL etc?

I think everywhere when there is a good return on the buyers investment, say 2-3-4 years.

10-Is the market fairly efficient and liquid?

I think because of new technology in this industry, the market is more efficient than if ever has been

Sonny can be reached: sentrican@aol.com or click the link on my blogroll!