Any real valuation would have to be after any well production if or when it happens. Then the proration amounts and average daily BBL would have to be recorded, and expenses and lease payments would have to be factored in. MXXH shareholders are only in for 25% "working interest". As of now, there is no "working" (not drilled), so valuating would be fruitless and shows on the pps.
"Working Interest" means an interest in an oil and gas lease that gives the owner of the interest the right to drill for and produce oil and gas on the leased acreage and requires the owner to pay a share of the costs of drilling and production operations. The share of production to which a working interest owner is entitled will always be smaller than the share of costs that the working interest owner is required to bear, with the balance of the production accruing to the owners of royalties. For example, the owner of a 100% working interest in a lease burdened by a landowner's royalty of 12.5% would be required to pay 100% of the costs of a well but would be entitled to retain 87.5% of the production.
Complete Terms, amount of Royalties accrued or paid, and other fees or factors, including but not limited to "production operation" costs paid to Tejones Operating Corporation that are deducted from the "25% Working Interest" of SANGER HEIRS Lease not disclosed by MXXH.
I remember someone driving around in the brush and under-developed roads in the area, was there any research done on who exactly owned the parcel # 42-297-34985 where the permit is and likely the one who would have the royalties?
