Should Be Easy To Double, Triple, Quadruple Your Money in the Oil Patch -- in South Dakota -- See Disclaimer

Disclaimer at the bottom.

The Rapid City Journal reports that a Boerne (pronounced "Bernie), Texas, company has purchased oil and gas leases in northwestern South Dakota: $520,994 for 66,938 acres. If I did my math correctly, that's $7.80/acre.

The location of these acres were not shown, but they were stated, as noted, to be in "northwestern South Dakota." Maps of the Williston Basin show the basin extending into northwestern South Dakota.

My hunch is that an operator could repackage these 500,000 acres into smaller parcels and market them for $15/acre. Folks looking at prices paid for acreage in North Dakota, upwards of one thousand dollars and more, could be enticed into getting a small stake for only $15 to $30/acre.

The writer noted that the Boerne company is not listed as an active driller in South Dakota.

For an individual investor, or for the Boerne company for that matter, $15 to $30 doesn't sound like much, but when one pays $8.00/acre, and can then turn around and sell it for $15 an acre or more, that's a pretty good return.

On the other hand the company may be getting ready to drill. If so, they got in at a great price compared to prices being paid in North Dakota.

I don't know if the story would have caught my eye for posting (it was sent to me), but I know the city of Boerne quite well. It is just on the outskirts of San Antonio, where I call home. It has a great history and a favorite of tourists.

DISCLAIMER: With regard to the oil and gas leases, I am making no recommendation one way or the other, simply linking the story for those who might be interested in the story as a "human interest story," not an investment story.