$MDMP~~NEWS just now THE MDM PERMIAN, INC. BUSINES

$MDMP~~NEWS just now THE MDM PERMIAN, INC. BUSINESS MODEL
The MDM Permian, Inc. business model is not a new concept. This business plan has been highly successful
for numerous companies engaged in the Permian Basin.
1. Initiate a geological workup and collection of existing data available within a promising area of
the Permian Basin.
2. Conduct a mineral examination of the public record and determine the mineral owners.
3. Obtain favorable oil and gas leases in the area of concern.
4. Conduct new scientific surveys to help ascertain strategic locations for drilling and proving of
reservoirs.
5. Strategically drill new wells.
6. Re-enter select plugged historic wells for scientific data collection.
7. Sell the prospect to a production company.
8. Replicate procedure.
Companies that are heavily involved in the drilling and production of unconventional reservoirs are
constantly in need of new acreage to add to the drilling inventory. Unconventional reservoirs decline
rather quickly in comparison to traditional reservoirs, thus the need to replenish drilling location inventory
whenever possible. It is much easier to make the acquisition of assembled and proven acreage than
attempt to conduct that effort inhouse while developing and managing current acreage and production.
A large block of contiguous acreage that has demonstrated the existence and productivity of these
reservoirs becomes a very valuable asset. That asset can be monetized through the strategic drilling and
marketing of the acreage by a team of seasoned professionals.
The most successful company in this arena is Three Rivers Operating, LLC. Three Rivers has created and
sold Three Rivers I, Three Rivers II, and Three Rivers III collectively for over $3 billion. The company is now
engaged in Three Rivers IV.
Parsley Energy recently purchased the acreage assets and production of Double Eagle Energy for $2.8
billion specifically for new drilling locations as well as the established production.
Callon Petroleum Company acquired the oil and gas assets of American Resource Development Company
for $633 million to increase drilling location inventory.
RK Petroleum, Inc. sold the assets of 9500 acres and 1900 BOPDE (all vertical) to QEP for $660 million.
All the above acquisitions were focused to increase the inventory of unconventional reservoir locations
as well as increase daily oil and gas production