Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2018

2. Acquisitions and Dispositions

Historically, the Company has repurchased the non-controlling interests of the partners and trust unit holders in certain of the Partnerships, which consist primarily of oil and gas interests. The Company purchased such non-controlling interests in an amount totaling $65,000 in 2018 and $308,000 in 2017.

During 2018 the Company acquired 1,640 gross (464 net) acres, along with 16.6% to 33.4% working interest ownership in 51 oil and gas wells and one commercial salt water disposal well operated by the Company, all located in Reagan County, Texas, for $6,080,000.

During 2018 the Company sold or farmed out interests in certain non-core undeveloped and developed oil and natural gas properties through a number of individually negotiated transactions in exchange for cash and a royalty or working interest in Oklahoma, Kansas, Colorado, Texas and Wyoming. Proceeds under these agreements were approximately $3.1 million.

During 2017 the Company acquired 118 net acres in one and a half sections in Upton County, Texas for $596,600 directly offsetting Company acreage. This purchase increased Prime’s leasehold in a core area of expected future development.

During 2017 the Company sold or farmed-out leasehold rights through six separate transactions, receiving gross proceeds of approximately $46 million. In West Texas we sold approximately 2,096 net acres for $37.4 million, primarily located in Martin County, and in Oklahoma we farmed-out approximately 1,554 net acres primarily in Canadian County for $8.6 million and retained an over-riding royalty interest and potential reversionary interests. These sales were of non-cash flowing mineral interests.