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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (186267)	11/5/2014 6:33:20 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206103

Iso, the reason I just assumed that you must have been buying undrilled acreage vs. producing acreage is that, as you say, the prices of royalties on producing acreage on the auction markets are very high, other than in extreme situations such as, say, Nov. '12. I get the EnergyNet metrics sheet every once in a while and every time I look at it I'm bowled over by how high the average multiples are for producing royalties. I always thought that EnergyNet was representative of the auction market overall (i.e. comparable to Oil & Gas Clearinghouse, etc.) but maybe not. I believe a big reason that royalties are selling for such huge multiples is the low interest rates. These low rates are causing investors to look at alternative investments for the portion of their portfolios that seeks income, and royalties have been a logical place to look with the recent high oil prices. In any event, best of luck with your program!