DALLAS—It’s a new hot business in the energy space: owning and managing mineral rights. However, this line of work has quickly become competitive, a panel of mineral-rights buyers told Oil and Gas Investor’s A&D Strategies and Opportunities Conference on Oct. 12.
“You have to build and operate your business like an E&P,” Will Cullen, vice president of LongPoint Minerals LLC, told conference attendees. And like any successful growing producer, a mineral rights buyer “wants to be where the rigs are.”
LongPoint holds about 41,500 net mineral acres with an estimated production of around 2,350 barrels of oil equivalent per day. Some 38 horizontal rigs operate on its acreage with 52 undrilled permits in hand with 173 drilled but uncompleted wells.