Saturday, May 26, 2012

Farmers Hit Jackpot In Kansas Oil Boom

This emerging oil play is called the Mississippi Lime.  You may have noticed the banner on this blog for Miss Lime player "Petro River USA".  Petro River is one of Canadian Value Investing's Showcase Companies who you will be hearing more from in the future:

With a knock at the door, many local farmers who have been sitting atop their mineral rights for decades are suddenly seeing their lives change forever.
John Walker, a 63-year old farmer who has been harvesting wheat in the small town of Anthony since he was six years old, has received $1.5 million over the past year after leasing out mineral rights on 2,000 acres of his land.
Walker received $550 an acre for leasing out half of them last year, then received $1,000 an acre for the other half this year. He will also get royalty payments of 20% from any oil that is produced on that land.
"I've had to pinch myself every morning just to know I'm awake ... we've kind of hit the jackpot," said Walker.

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