Tobosa | Quality Mineral Production | Investment-Grade Ag Asset

This 732-acre tract is between Alamo Farm and I-20. It has not been farmed for many years and still has the old concrete ditches that were used for row watering. There are 4 or 5 irrigation wells that are 1000 to 1200 ft deep including one that the owner says is the best well in Reeves County. The primary value of Tabosa is its mineral production and the benefits associated with the ownership of the surface. Royalty income since 2018 has been over $2,000,000.

A Land and Water Use Agreement obligates those drilling wells on Tabosa to buy frack water from Tabosa for $0.50 per bbl. which to date has resulted in $3,232,762 in frack water sales. Another agreement provides for a Throughput Fee of $0.02 per bbl. for produced water from the Iceberg Central Tank Battery located in the northeast corner of Tabosa. During the first 18 months of this agreement, the payment was $153,000. In addition, right-of-way sales have paid Tabosa $1,551,547.

FARMING OPERATIONS

Alamo Farm features 875 irrigated acres of certified organic alfalfa, irrigated via seven center pivot sprinkler systems and seven irrigation wells. Water is supplied from deep, high-capacity irrigation wellsmost between 1,000 to 1,200 feet deepeach well feeding a dedicated pivot. Per the seller, this farm pumps 11,000,000 gallons/day from March to mid November with no effect on the static water level.

Pivot Brands & Capacity:

- 4 Reinke systems (19921994 models)

- 2 T&L systems ( 2010 & older)

- 1 reconditioned Pierce

- All pivots nozzled for 1,000 GPM

Wells:

- Cased to depth with 16 steel

- 8 turbine pumps set at ~500 ft

- Static water levels ~240 ft

- Powered by natural gas engines (West Texas Gas pipeline tap)

- Electric Utility power available as well

Office Building: 3 offices, bathroom, kitchen

Hay Barns: 60 X 200 (nearly new); 50 X 48

Two Shop Buildings 30 X 50: one nearly new and another older one

70 Digital Truck Scale

5 Residential Homes:

- 1 well-maintained managers residence

- 2 recently built homes

- 2 homes needing renovation

Water Supply: Madera Valley Rural Water System

The soils are deep clay loams, and the topography is virtually level, ideal for high-efficiency farming. In addition to alfalfa, the area is known for premium cotton and grain cropsand notably, the Pecos Valley is famed for producing cantaloupes with unmatched flavor thanks to its soil and water quality.

Since 2007, all of the alfalfa has been certified organic and sold under contract to one large organic dairy, commanding premium prices well above conventional hay markets.

EXPANSION POTENTIAL

There are an additional two fallow quarter-section fields with previous pivot infrastructure, and a third half-section field previously irrigated via surface ditches (fallow for 30+ years). Up to four additional pivots could be installed, each with its own well, significantly increasing production capacity.

MINERAL & ENERGY UPSIDE

Alamo Farm includes 204 net mineral acres all of which will transfer to a buyer. Without any active production on the surface, subsurface royalties income have generated over $4,000,000 in the past 6 years for the surface owner. To the sellers knowledge the current production is located in only one zone, but there are reported multiple producing zones in this area, additionally there are new wells recently drilled and others permitted to soon be drilled on or under the property.

FEEDYARD & POTENTIAL DAIRY

A previously permitted 15,000-head feedyard and 750 cow dairy were operated on the eastern half of the northeast quarter of section 7. Included in this facility are working grain storage bins and elevator legs with the feedmill needing some work to be fully functional. Along with the growing alfalfa and existing pen infrastructure, this might be strongly considered for a future dairy operation.

Feedyard Features:

- Built in 1973 (metal feed bunks, north) and 1975 (concrete feed bunks, south)

- Historically used for beef cattle, milking ~750 dairy cows (19881997), and raising dairy heifers (19932008)

Feedmill (built 1993):

- Two large grain storage bins

- 810 overhead commodity bins

- Two Roskamp dry-roll grain processors

QUARRY INCOME

The property includes an active river-rock quarry, used occasionally by regional oilfield service companies. These operators pay $5.00 per yard and utilize ~5,000 yards per padproviding ongoing passive income with no labor or equipment requirements from the landowner.

LOCATION & ACCESS

10 miles south of I-20 via FM 869

21 miles north of I-10 via State HWY 17 & FM 869

1 mile west on CR 128

Excellent access to Pecos, Odessa, and Midland markets

INVESTMENT HIGHLIGHTS

2,777 total acres | 875 organic irrigated acres

300 net mineral acres with multi-million-dollar royalty track record

7 high-output pivots with deep wells

Certified organic alfalfa with premium offtake contract

15,000-head feedyard & commercial-grade feedmill

Quarry lease with passive income

Residential, office & operational infrastructure

Expansion potential with 3 additional fields (4 new pivots)

Additional drilling on or near Tabosa will produce additional royalty income as well as frack water sales

Strategic location near major ag & energy markets

Offered at: $30,000,000.00

A rare convergence of water, infrastructure, organic certification, and mineral productionAlamo Farm and Tabosa are scalable, high-performing assets with a strong history and exceptional future.