UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 2009
DORCHESTER MINERALS, L.P.
(Exact name of Registrant as specified in its charter)
| Delaware | 000-50175 | 81-0551518 | ||
| (State or other jurisdiction of incorporation or organization |
Commission File Number | (I.R.S. Employer Identification No.) |
3838 Oak Lawn, Suite 300, Dallas, Texas 75219
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (214) 559-0300
N/A
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01 | Regulation FD Disclosure |
On May 13, 2009, the Registrant will hold its 2009 Annual Meeting of Limited Partners. As the Chairman of the meeting, William Casey McManemin, the Chief Executive Officer of Dorchester Minerals, L.P., will discuss historical financial and operational information of Dorchester Minerals, L.P. The slide presentation Mr. McManemin will use in conjunction with his presentation is attached as Exhibit No. 99.1.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
99.1 Slide Presentation is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Limitation on Incorporation by Reference
In accordance with general instructions B.2 and B.6 of Form 8-K, the information disclosed in this report under Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| DORCHESTER MINERALS, L.P. Registrant | ||||
| by Dorchester Minerals Management LP | ||||
| its General Partner, | ||||
| by Dorchester Minerals Management GP LLC | ||||
| its General Partner | ||||
| Date: May 12, 2009 | ||||
| By: | /s/ William Casey McManemin | |||
| William Casey McManemin | ||||
| Chief Executive Officer | ||||
2
 Dorchester Minerals, LP NASDAQ: DMLP 1 Dorchester Minerals, LP Annual Presentation May 13, 2009 Exhibit 99.1 |
 Dorchester Minerals, LP NASDAQ: DMLP 2 Forward-Looking Statements • Portions of this document may constitute "forward-looking statements" as defined by federal law. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Examples of such uncertainties and risk factors include, but are not limited to, changes in the price or demand for oil and natural gas, changes in the operations on or development of the Partnership’s properties, changes in economic and industry conditions and changes in regulatory requirements (including changes in environmental requirements) and the Partnership’s consolidated financial position, business strategy and other plans and objectives for future operations. These and other factors are set forth in the Partnership's filings with the Securities and Exchange Commission. |
 Dorchester Minerals, LP NASDAQ: DMLP 3 • Overview of 2008 – Distributions and Financial Results – Production and Reserves – Peer Group Analysis – Royalty Cash Receipts • Property Highlights – Portfolio Overview – Royalty Properties – Net Profits Interests – Fayetteville Shale • Developing Plays – Horizontal Bakken – Appalachia Presentation Outline |
 Dorchester Minerals, LP NASDAQ: DMLP 4 Overview of 2008 Results |
 Dorchester Minerals, LP NASDAQ: DMLP 5 2008 Distributions Royalty Revenue $58.3 MM Total Revenue $86.9 MM Other Revenue $1.2 MM NPI Revenue $27.4 MM LP Distribution $79.2 MM GP Distribution $2.5 MM Total Expenses $5.2 MM • Cash Distributions Paid in Calendar 2008 – Reflects Q4 2007 to Q3 2008 activity |
 Dorchester Minerals, LP NASDAQ: DMLP 6 2008 Financial Results $49.2 $56.8 $79.8 $74.9 $65.4 Operating Revenue ($MM) Gas Price ($/Mcf) Distributions ($/unit) • Revenue – Price – Distributions – Record revenues and distributions in 2008 – Royalty properties contributed 69% to total operating revenues – NPI and lease bonuses have become a smaller portion of revenues $89.9 $0 $20 $40 $60 $80 $100 2003 2004 2005 2006 2007 2008 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 Royalties NPI Lease Bonus Gas Price ($/Mcf) 2003 2004 2005 2006 2007 2008 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Distributions Gas Price ($/Mcf) |
 Dorchester Minerals, LP NASDAQ: DMLP 7 2008 Production Overview Geographic Breakdown Fayetteville Shale (RI) 3% Mid-Continent (Other)
6% West TX/ SE NM 7% Gulf Coast/ South TX 11% Miscellaneous 33% Mid-Continent (Hugoton NPI) 40% Daily Production (MMcfepd) Production Profile • Total 2008 Production of 10.23 Bcfe – 82% of total production was natural gas, 18% oil and condensate – Benefits of a diverse portfolio – High quality properties Low decline rate – Cumulative production since inception has exceeded projections by 6.0% Note: total production on wellhead basis, daily production on sales basis
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 Dorchester Minerals, LP NASDAQ: DMLP 8 2008 Reserves Overview • Total Proved Reserves of 82.4 Bcfe on 12/31/08 Gas 74% Oil 26% NPI 35% Royalty 65% Year-end Reserves (Bcfe) 0 20 40 60 80 100 Actual 01/31/2003 Projected 12/31/2008 Actual 12/31/2008 82.4 97.0 31.8 Cumulative Reserve Revisions (Bcfe) 2003-2008 Production (65.2 Bcfe) – 100% of reserves are proved developed – Demonstrated history of positive revisions – Revisions and acquisitions account for 61% of current reserves – Driven by new plays, field
extensions, infill drilling, new technology, etc. – 1.7% of reserves from Fayetteville Shale Reserve Revisions (46.1 Bcfe) Reserve Acquisitions (4.5 Bcfe) Reserve Base (31.8 Bcfe) 0 20 40 60 80 100 'Feb 2003 2003 2004 2005 2006 2007 2008 Base Revisions Acquisitions |
 Dorchester Minerals, LP NASDAQ: DMLP 9 Peer Group Comparison 50 60 70 80 90 100 110 120 2003 2004 2005 2006 2007 2008 Normalized Reserves (Indexed to 2003) 50 60 70 80 90 100 110 120 2003 2004 2005 2006 2007 2008 Normalized Production (Indexed to 2003) • Reserves and Production Performance – DMLP is a cross between a royalty trust with 100% net profits interests (SJT) and one
with 100% royalties (SBR), plus the upside of a large non-producing
mineral portfolio with potential for future drilling and development
– DMLP has the ability to expand its base of underlying assets through unit
exchanges DMLP HGT SJT PBT MTR CRT SBR Source: SEC 10-K filings |
 Dorchester Minerals, LP NASDAQ: DMLP 10 Peer Group Comparison 20 40 60 80 100 120 140 Jan Feb Mar Apr May YTD 2009 Normalized Returns (reinvested) 0 100 200 300 400 500 600 700 2003 2004 2005 2006 2007 2008 2009 2003-2009 Normalized Returns (reinvested) • Market Performance – Pure royalties lack operating leverage inherent in net profits interests Less volatility • Underperforming in high price environment (2007 to mid-2008) • Overperforming in low price environment due to lower fixed cost structure DMLP HGT SJT PBT MTR CRT SBR Note: Dist. reinvested on last day of quarter |
 Dorchester Minerals, LP NASDAQ: DMLP 11 Royalty Cash Receipts Jan Feb Mar Apr May Jun Jul Aug Oil and Gas Produced Cash receipts begin 1st Quarter Distribution declared Dist. Paid (Feb-Mar cash) 2nd Quarter Distribution declared Dist. Paid (Apr-Jun cash) LP distribution of all cash attributable to January production may occur as late as August , a 7-month time lag • Long delay between production and cash distribution – Cash receipts extend over multiple months due to adjustments, releases, etc. – Prices can change dramatically between production and payment of distribution – Example of a typical cash receipt cycle : |
 Dorchester Minerals, LP NASDAQ: DMLP 12 Royalty Cash Receipts • Long delay between production and cash distribution – Peak cash receipt month was July 2008 – Peak distribution was paid in November 2008 – Actual cash receipts, distributions and gas price: 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Jan-07 Jan-08 Jan-09 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Royalty & NPI Cash Receipts Cash Distribution Gas Price (HSC) Cash Receipts/Distribution ($MM) HSC Gas Price ($/Mcf) |
 Dorchester Minerals, LP NASDAQ: DMLP 13 Property Highlights Royalty Properties |
 Dorchester Minerals, LP NASDAQ: DMLP 14 Property Highlights Williston 100,734 net acres Mid-Continent 33,980 net acres Texas 137,656 net acres Gulf Coast 18,500 net acres Eastern 25,273 net acres Appalachia 23,646 net acres Other 3,775 net acres Rockies 4,957 net acres • Mineral Portfolio Overview – 348,521 net acres (3,119,341 gross acres) – 573 counties in 25 states – Approximately 70% of acreage is undeveloped – Wide geographic spread including most major producing basins – Assets range from mature legacy production to areas with exploratory potential
Expansion Potential Ongoing Development Legacy Production Basin/Area Three Forks Sanish Bakken Red River Nesson Anticline Williston Basin Marcellus/Utica Upper Devonian Appalachia Fayetteville ‘ Hugoton Mid-Continent Horizontal Wilcox Bob West Jeffress McAllen Ranch Gulf Coast South Texas Delaware Basin West TX Overthrust Wolfberry Denver Unit Wasson West Texas Southeast NM |
 Dorchester Minerals, LP NASDAQ: DMLP 15 Royalty Properties • Leasing and Development Activity – Consummated 63 leases/elections on 1,211 net acres in 25 counties/parishes in four states – Lease bonus payments up to $850/acre – Initial royalty terms up to 40% – 46 active lease offers as of April 2009 – Identified 423 new wells on royalty properties in 10 states – Fayetteville Shale activity continued to ramp up in 2008 – Infill drilling and redevelopment on legacy royalty assets
|
 Dorchester Minerals, LP NASDAQ: DMLP 16 1,000 10,000 100,000 2003 2004 2005 2006 2007 2008 2009 0 20 40 60 80 – Legacy royalty asset with net revenue interests ranging up to 10.2% – Long-life production, no PUD reserves assigned to property – Recompletion of existing wellbores combined with new development drilling – 2008 test rates up to 13.0 MMcfpd Royalty Properties Gross Daily Gas Rate (Mcfepd) Well Count • Bob West Field – Starr County, Texas |
 Dorchester Minerals, LP NASDAQ: DMLP 17 Property Highlights Net Profits Interests |
 Dorchester Minerals, LP NASDAQ: DMLP 18 Net Profits Interests • NPI Provides LP Exposure to Working Interest Potential Without Generating UBTI – Participated in 63 wells in Arkansas, Montana, North Dakota, Oklahoma, and Texas • 42 wells completed in 2008 • 21 wells in various stages of drilling or completion at year-end 2008 • No wells abandoned as dry holes in 2008 – Optional working interest participation in numerous leases – Leverage information franchise – Capitalize on strong negotiating position |
 Dorchester Minerals, LP NASDAQ: DMLP 19 2% 98% Minerals NPI Other NPI Net Profits Interests $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2003 2004 2005 2006 2007 2008 Historical NPI CAPEX ($ millions) 2008 NPI CAPEX • Capital Expenditures Through Year-end 2008 – $15.8 million in cumulative investments in all net profits interest properties
– 2008 investments increased by 52% over 2007 and 327% over 2003 – Majority of CAPEX was used to drill new wells in the Minerals NPI – Continue to reinvest Minerals NPI cash flow |
 Dorchester Minerals, LP NASDAQ: DMLP 20 Net Profits Interests • Minerals NPI Performance – Production and reserves growing steadily since inception – 165 wells/units producing at year-end 2008 (152 currently in pay status) – 1.8 Bcfe in production receipts through April 2009 – Total proved reserves of 2.3 Bcfe at year-end 2008, a 45% increase over 2007 – Minerals NPI production and reserves are not included in DMLP results Note: Gas rate based on sales volumes 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2003 2004 2005 2006 2007 2008 Proved Reserves (Bcfe) Net Daily Gas Rate (Mcfd) 100 1,000 10,000 2003 2004 2005 2006 2007 2008 2009 |
 Dorchester Minerals, LP NASDAQ: DMLP 21 Net Profits Interests ($1.5) ($1.0) ($0.5) $0.0 $0.5 $1.0 2003 2004 2005 2006 2007 2008 2009 Investment Net Operating Income Surplus (Deficit) Millions • Minerals NPI Cash Flow Through March 2009 Cumulative Revenue $15.0 MM Cumulative Expense (LOE, taxes, etc) ($2.3 MM) Cumulative Operating Income $12.7 MM Cumulative Investment ($13.5 MM) Cumulative Surplus (Deficit) ($0.8 MM) Surplus balance must be positive before the Minerals NPI contributes to LP distributions Note: Figures provide on a cash basis |
 Dorchester Minerals, LP NASDAQ: DMLP 22 Net Profits Interests • Hugoton Area – Operated Properties – 2008 production within 3% of projection – Year-over-year decline of only 5.4% – World-class asset but limited upside potential Gas Rate (Mcfepd) Well Count 1,000 10,000 100,000 2003 2004 2005 2006 2007 2008 2009 0 50 100 150 200 250 300 Note: Gas rate based on sales volumes |
 Dorchester Minerals, LP NASDAQ: DMLP 23 Property Highlights Fayetteville Shale |
 Dorchester Minerals, LP NASDAQ: DMLP 24 Fayetteville Shale • Eastern Arkoma Basin – Northern Arkansas – Ownership summary • 23,336 gross/11,464 net acres in trend • 196 sections in 8 counties – 2006 lease transaction • 9,800 net acres in 179 sections in 8 counties • Bonus of $625 per acre with 25% royalty • Optional working interest participation
on well-by-well basis, royalty interest retained 2.6% 3.5% 111 Optional WI (NPI) 4.7% 0.0% Avg. WI 4.7% 4 Unleased MI (NPI) 2.1% 179 Royalty (DMLP) Avg. NRI Sections Interest Type |
 Dorchester Minerals, LP NASDAQ: DMLP 25 Fayetteville Shale • Six County Core Area – Current development activity on DMLP acreage • 92 wells completed as producers • 27 wells in various stages of drilling or completion • 36 wells permitted and/or proposed by operator – Drilling or permitting activity has occurred on 29% of DMLP sections Dorchester Acreage Wells with IP > 5 MMcfd Prospective “Halo” 0 Producing Wells 47 Active Permits 31 Locations Productive Fairway 1302 Producing Wells 656 Active Permits 267 Locations Source: HPDI - Rigdata |
 Dorchester Minerals, LP NASDAQ: DMLP 26 Fayetteville Shale 0 5 10 15 20 25 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 New Permits New Wells Spud 1st Payment Received – Development activity remains at high levels, driven by SWN and CHK – Well spuds have been outpaced by well permits, a leading indicator – Substantial time-lag between spud and first payment 275 days • Permitting, Drilling and Payment History First Payment First Production Well Spud Well Permitted 45 days 103 days 172 days Well Count |
 Dorchester Minerals, LP NASDAQ: DMLP 27 • Capital Expenditures Fayetteville Shale • 2008 Reserves 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2006 2007 2008 DMLP (RI) Minerals NPI (WI) Proved Reserves (Bcf) – Year-end reserves of 2.9 Bcf (81 wells) • 1.5 Bcf (WI) • 1.4 Bcf (RI) – 61% Year-over-year reserve increase – Only completed wells with test rates are included in reserve estimates (no PUDs) 0.0 1.0 2.0 3.0 4.0 5.0 2006 2007 2008 Capital Expenditures ($ millions) – Total Fayetteville investments of $6.7 MM through year-end 2008 – Additional $1.1 MM to date in 2009 – Average $3.1 MM per well in 2008 – Expect drilling and completion costs to decrease in 2009 |
 Dorchester Minerals, LP NASDAQ: DMLP 28 • Well Performance • Production Results Fayetteville Shale Net Daily Production (Mcfd) 0 500 1,000 1,500 2,000 2,500 2006 2007 2008 2009 Net RI Production Net WI Production – 77 wells producing at year-end 2008 • 1.2 MMcfd (WI) • 1.1 MMcfd (RI) – 89% Year-over-year rate increase – Produced 641 MMcf in 2008 – 55% from working interest wells Zero-Time Production (Mcfd) 0 500 1,000 1,500 2,000 2,500 0 5 10 15 20 25 30 1.4 Bcf (SEECO) 2.0 Bcf (SEECO) DMLP Months on Production – Improved stimulation and longer laterals have increased average initial rate • 2006 1.9 MMcfd (Max 2.9 MMcfd) • 2007 1.8 MMcfd (Max 3.5 MMcfd) • 2008 2.4 MMcfd (Max 5.5 MMcfd) • 2009 YTD 3.2 MMcfd (Max 4.6 MMcfd) Note: Volumes from AOGC, 1 st point on DMLP zero-time curve based on estimates from partial month data |
 Dorchester Minerals, LP NASDAQ: DMLP 29 Developing Play Highlights |
 Dorchester Minerals, LP NASDAQ: DMLP Developing Play Highlights • Horizontal Bakken (North Dakota) – Northwestern North Dakota – Diversified acreage position • 70,390 gross acres, 7,602 net acres – Operators: Continental, EOG, Hess, Marathon – Elected non-consent option in 70 wells to date • 1/8 th royalty • Back-in for 100% WI after payout + 50% penalty – Current Activity • 36 wells completed as producers • 16 wells in various stages of drilling or completion • 18 wells permitted and/or proposed by operator – Rig count has dropped 60% since November 2008 – Properties subject to Minerals NPI 30 |
 Dorchester Minerals, LP NASDAQ: DMLP 31 Developing Play Highlights • Horizontal Bakken (North Dakota) – DMOLP owns 188 net acres in Parshall field in Mountrail County • Risan 1-34H – Paid out, EUR: 514,000 boe • Pederson 1-33H – Drilled (confidential status) • Austin 20-29H – Drilled (confidential status) 18.6% NRI after payout • Austin 23-32H – Drilled (confidential status) – Selected well results – DeAngelis 41X-21 (XTO) tested 1,417 bopd – Thompson 44X-20 (XTO) tested 1,271 bopd 0 5 10 15 20 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 New Permits New Wells Spud Wells Reaching Payout Well Count Source: North Dakota Industrial Commission |
 Dorchester Minerals, LP NASDAQ: DMLP 32 Developing Play Highlights • Devonian Shale (Appalachia) – New York and Pennsylvania – Concentrated acreage position • 32,588 gross acres • 23,093 net acres • 70% in Allegany and Steuben Counties, NY – Challenging political environment in New York – Potential targets • Upper Devonian oil (shallow) • Marcellus/Devonian shale gas (middle) • Trenton-Black River gas (deep) – Operators: Anadarko, Cabot, Chesapeake, EOG, EXCO, Fortuna Energy, Range, XTO – No reserves booked in 2008 Allegany & Steuben Counties |
 Dorchester Minerals, LP NASDAQ: DMLP 33 Dorchester Minerals, LP Annual Presentation May 13, 2009 |
 Dorchester Minerals, LP NASDAQ: DMLP 34 Appendix |
 Dorchester Minerals, LP NASDAQ: DMLP 35 • What is the Minerals NPI and How Does it Work? Appendix – Upon its formation, Dorchester Minerals, LP (DMLP, the public partnership and owner of the
mineral interests) provided for future development opportunities on its
undeveloped mineral interests by the creation of the Minerals Net Profits
Interest (Minerals NPI). – DMLP has negotiated and may continue to negotiate the right but not the obligation to
participate in development activity in addition to retaining a royalty
interest. – This right may take the form of an optional heads-up (unpromoted) working interest,
carried working interest or reversionary (back-in) working interest. In some instances, an unleased mineral interest may be treated as a working interest subject to statutory non-consent provisions.
– DMLP assigns this right to Dorchester Minerals Operating LP (the operating partnership or DMOLP) subject to the terms of the Minerals NPI. – DMOLP is an indirect wholly owned affiliate of DMLP’s General Partner. – DMOLP funds all costs associated with this right, including drilling and completion
costs. – DMLP and its partners are not liable for any costs or expenses. – DMOLP pays to DMLP 96.97% of the monthly “Net Proceeds” attributable to the properties subject to the Minerals NPI. – Net Proceeds is defined as total revenues less total expenses plus an amount equivalent to
interest at a prevailing rate on any prior period deficit balance. In other
words, DMOLP pays 100% of all costs, receives 100% of all revenues plus
interest, and thereafter (sometimes called “Payout”) pays 96.97% of net cashflow to DMLP. – LP distributions reflect 96% of royalty net cashflow and 99% of NPI net cashflow 99% x 96.97% = 96%. |
 Dorchester Minerals, LP NASDAQ: DMLP 36 Appendix DMLP Lease to third party for royalty and optional participation right Participation right assigned to DMOLP NPI payment (96.97% of cash flow) Distributable Cash DMOLP pays 100% of costs and receives 100% of revenue plus interest equivalent on total NPI basis Royalty
(100% of cash flow) General
Partner 4% of
royalties 1% of NPI’s Limited
Partners 96% of
royalties 99% of NPI’s • What is the Minerals NPI and How Does it Work? |
 Dorchester Minerals, LP NASDAQ: DMLP 37 Appendix • Distribution Determinations 4% of Net Cash Receipts from Royalty Properties $ -------- $2,171 96% of Net Cash Receipts from Royalty Properties $52,107 $ -------- 1% of Net Profits Interests Paid to our Partnership $ -------- $274 Total Distributions $79,203 $2,445 99% of Net Profits Interests Paid to our Partnership $27,096 $ -------- Operating Partnership Share (3.03% of Net Proceeds) $ -------- $855 Total General Partner Share $3,300 % Total 96% 4% Limited Partners General Partner – Period from October 2007 through September 2008 ($ thousands) |
 Dorchester Minerals, LP NASDAQ: DMLP 38 Appendix 2008 Cash Distributions $81.6 MM Mgmt GP Mgmt LP Other LP $2.4 MM $7.8 MM $71.4 MM Mgmt LP is 3.3 times Mgmt GP • Alignment of GP and LP interests – GP has no incentive distribution rights – fixed sharing ratio – Management’s LP interest exceeds its GP interest – Not incentivized to make dilutive transactions 87.44 % 9.56 % 3.00 % |
 Dorchester Minerals, LP NASDAQ: DMLP 39 • Operating Leverage – Royalty Interest vs. NPI Appendix Net Profits Interest Royalty Interest 1,000 Mcf $6.00/Mcf $6,000 ($0) $6,000 25% Royalty $1,500 1,000 Mcf $7.80/Mcf $7,800 ($0) $7,800 25% Royalty $1,950 1,000 Mcf $6.00/Mcf $6,000 ($1,000) $5,000 25% NPI $1,250 1,000 Mcf $7.80/Mcf $7,800 ($1,000) $6,800 25% NPI $1,700 30% Increase in Royalty Cash Flow 36% Increase in NPI Cash Flow 30% Increase in Gas Price Production Volume Gas Price Revenue Fixed Production Costs Operating Income Net Interest Net Cash Flow Production Volume Gas Price Revenue Fixed Production Costs Operating Income Net Interest Net Cash Flow |
 Dorchester Minerals, LP NASDAQ: DMLP 40 Appendix • Fayetteville Shale Well List Spud 2.312% 3.414% 4.553% Conway Collinsworth 7-16 #1-10H3 Spud 4.688% 3.750% 5.000% Van Buren Chavez 11-16 #3-8H 1,463 Producing 4.688% 3.750% 5.000% Van Buren Chavez 11-16 #2-8H 1,314 Producing 4.688% 3.750% 5.000% Van Buren Chavez 11-16 #1-8H Permitted 2.974% 3.569% 4.375% Conway Charles Reeves 9-15 #5-10H3 Permitted 2.974% 3.569% 4.758% Conway Charles Reeves 9-15 #4-10H3 Permitted 2.849% 3.419% 4.559% Conway Charles Reeves 9-15 #3-10H3 Producing 0.635% 1.275% 1.701% Conway Bryant 9-15 #4-32H31 2,738 Producing 0.781% 0.000% 0.000% Van Buren Breeding 9-13 #2-25H 2,601 Producing 0.781% 0.000% 0.000% Van Buren Breeding 9-13 #1-25H 320 Producing 1.563% 0.938% 1.250% Van Buren Bradley 11-13 #2-9H 1,859 Producing 1.563% 0.938% 1.250% Van Buren Bradley 11-13 #1-9H Spud 1.367% 0.000% 0.000% Faulkner Bowie 7-12 #1-22H 641 Producing 0.684% 0.000% 0.000% Van Buren Bonds 11-13 #2-30H 1,582 Producing 0.684% 0.000% 0.000% Van Buren Bonds 11-13 #1-30H Spud 1.563% 0.996% 1.322% Conway Beverly Crofford #2-14H Spud 1.563% 0.996% 1.322% Conway Beverly Crofford #1-14H 428 Producing 0.781% 0.000% 0.000% White Beals 8-7 #1-13H Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 41 Appendix • Fayetteville Shale Well List (continued) Permitted 2.344% 3.281% 4.375% Van Buren Graddy 10-12 #1-20H Spud 2.926% 5.128% 6.523% Faulkner Glover 8-13 #2-25H Spud 3.222% 5.648% 7.185% Faulkner Glover 8-13 #1-25H Permitted 3.125% 3.750% 5.000% White Gillam 9-6 #2-23H Permitted 3.125% 3.750% 5.000% White Gillam 9-6 #1-23H 191 Producing 0.478% 0.289% 0.385% Van Buren Douglas Krahn 11-13 #1-5H 2,255 Producing 0.781% 0.000% 0.000% Conway Don English 8-16 #2-12H 1,010 Producing 0.781% 0.000% 0.000% Conway Don English 8-16 #1-12H 4,625 Producing 1.384% 1.800% 2.400% Conway Deltic Timber 9-16 #4-36H31 Producing 0.049% 0.031% 0.041% Conway Deltic Timber 9-16 #3-25H24 1,629 Producing 1.563% 0.980% 1.302% Conway Deltic Timber 9-16 #2-25H 1,207 Producing 1.563% 0.980% 1.302% Conway Deltic Timber 9-16 #1-25H 2,882 Producing 0.000% 5.285% 5.306% Van Buren Crow 10-15 #4-28H33 Permitted 2.344% 3.281% 4.375% Van Buren Collums-Pennington 10-12 #2-20H Permitted 2.344% 3.281% 4.375% Van Buren Collums-Pennington 10-12 #1-20H Spud 1.561% 0.955% 1.273% Van Buren Collister 12-13 #3-32H Spud 1.561% 0.955% 1.273% Van Buren Collister 12-13 #2-32H 946 Producing 1.561% 0.941% 1.254% Van Buren Collister 12-13 #1-32H Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 42 Appendix • Fayetteville Shale Well List (continued) 1,055 Producing 0.781% 0.000% 0.000% White Hays 8-6 #1-18H 1,003 Producing 1.577% 1.697% 2.119% Faulkner Hardy 7-13 #2-5H 1,385 Producing 1.577% 1.689% 2.109% Faulkner Hardy 7-13 #1-5H Spud 2.972% 4.760% 6.347% Van Buren Handy 10-12 #6-18H Spud 2.972% 4.760% 6.347% Van Buren Handy 10-12 #5-18H Spud 2.971% 4.758% 6.344% Van Buren Handy 10-12 #4-18H Spud 0.395% 0.708% 0.944% Van Buren Handy 10-12 #3-18H19 3,328 Producing 2.971% 4.758% 6.344% Van Buren Handy 10-12 #2-18H 2,392 Producing 2.971% 4.758% 6.344% Van Buren Handy 10-12 #1-18H 400 Producing 2.223% 4.744% 6.135% Van Buren Gunn #1-19H 5,093 Producing 2.099% 1.502% 1.968% Conway Green Bay Packaging 9-15 #4-29H30 Permitted 0.056% 0.000% 0.000% Conway Green Bay Packaging 9-15 #4-19H 3,985 Producing 0.005% 0.000% 0.000% Conway Green Bay Packaging 9-15 #4-18H19 Permitted 0.056% 0.000% 0.000% Conway Green Bay Packaging 9-15 #3-19H 3,116 Producing 0.252% 0.000% 0.000% Conway Green Bay Packaging 9-15 #3-18H19 5,453 Producing 0.059% 0.000% 0.000% Conway Green Bay Packaging 9-15 #2-19H 3,216 Producing 0.059% 0.000% 0.000% Conway Green Bay Packaging 9-15 #1-19H 2,358 Producing 0.000% 3.366% 3.366% Van Buren Green Bay Packaging 10-16 #3-22H26 Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 43 Appendix • Fayetteville Shale Well List (continued) 3,847 Producing 2.189% 2.847% 3.796% Conway Jerome Carr 9-15 #3-31H 3,242 Producing 2.188% 2.847% 3.796% Conway Jerome Carr 9-15 #2-31H 1,622 Producing 2.188% 2.847% 3.796% Conway Jerome Carr 9-15 #1-31H 5,490 Producing 0.381% 0.000% 0.000% Conway James Guinn 9-15 #3-25H24 3,887 Producing 0.381% 0.000% 0.000% Conway James Guinn 9-15 #1-25H24 1,840 Producing 0.098% 0.000% 0.000% Conway Isley 9-14 #2-19H 1,680 Producing 0.098% 0.000% 0.000% Conway Isley 9-14 #1-19H Permitted 0.000% 0.000% 0.000% Van Buren Howard Family Trust 10-12 #5-9H17 Permitted 0.000% 0.000% 0.000% Van Buren Howard Family Trust 10-12 #4-9H16 Permitted 0.000% 0.000% 0.000% Van Buren Howard Family Trust 10-12 #3-9H16 Spud 2.594% 3.432% 4.576% Van Buren Howard Family Trust 10-12 #2-9H16 2,574 Producing 2.344% 3.281% 4.375% Van Buren Howard Family Trust 10-12 #1-9H Permitted 0.752% 0.000% 0.000% Faulkner Hooten 8-12 #2-17H Spud 0.752% 0.000% 0.000% Faulkner Hooten 8-12 #1-17H 1,856 Producing 0.000% 6.250% 6.250% Van Buren Hillis #3-27H 2,282 Producing 0.000% 0.781% 0.000% Van Buren Hillis #2-27H 880 S/I 0.000% 6.250% 6.250% Van Buren Hillis #1-27 839 Producing 0.391% 0.000% 0.000% Conway Hemphill 9-14 #1-30H Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 44 Appendix • Fayetteville Shale Well List (continued) 3,007 Producing 0.307% 0.327% 0.436% Cleburne Kessinger Trust 8-12 #3-2H35 2,725 Producing 1.563% 0.938% 1.250% Van Buren Kenneth Williams 10-15 #3-25H 3,511 Producing 1.563% 0.938% 1.250% Van Buren Kenneth Williams 10-15 #1-25H Permitted 0.428% 0.257% 0.342% Conway Kenneth McCoy 8-15 #4-7H6 Permitted 0.380% 0.228% 0.304% Conway Kenneth McCoy 8-15 #3-7H6 Permitted 0.510% 0.306% 0.408% Conway Kenneth McCoy 8-15 #2-7H6 Permitted 1.590% 0.954% 1.272% Conway Kenneth McCoy 8-15 #1-7H 1,411 Producing 0.000% 3.125% 3.125% Van Buren Jones 10-16 #3-33H 1,879 Producing 0.000% 3.125% 3.125% Van Buren Jones 10-16 #2-33H 2,156 Producing 0.000% 3.125% 3.125% Van Buren Jones 10-16 #1-33H 1,050 Producing 0.977% 0.000% 0.000% Faulkner Jolly 8-12 #2-9H 1,137 Producing 0.977% 0.000% 0.000% Faulkner Jolly 8-12 #1-9H Spud 0.659% 0.000% 0.000% Conway John Wells 9-15 #5-2H Spud 0.659% 0.000% 0.000% Conway John Wells 9-15 #4-2H 2,068 Producing 0.659% 0.000% 0.000% Conway John Wells 9-15 #3-2H 1,830 Producing 0.659% 0.000% 0.000% Conway John Wells 9-15 #2-2H 1,357 Producing 0.659% 0.000% 0.000% Conway John Wells 9-15 #1-2H 3,911 Producing 2.188% 2.847% 3.796% Conway Jerome Carr 9-15 #4-31H Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 45 Appendix • Fayetteville Shale Well List (continued) Spud 3.516% 3.750% 5.000% Cleburne Mulliniks 9-12 #3-35H Spud 3.516% 3.750% 5.000% Cleburne Mulliniks 9-12 #2-35H 3,491 Producing 3.516% 3.750% 5.000% Cleburne Mulliniks 9-12 #1-35H 516 Producing 1.880% 7.706% 7.389% Conway Moorow 8-15 #1-30H Permitted 0.781% 0.000% 0.000% Conway Merideth 7-16 #2-2H Spud 0.781% 0.000% 0.000% Conway Merideth 7-16 #1-2H 2,009 Producing 6.250% 3.750% 5.000% Conway McCoy 8-16 #3-1H 536 Producing 6.250% 3.750% 5.000% Conway McCoy 8-16 #2-1H 1,618 Producing 3.442% 3.793% 5.052% Van Buren Love 10-12 #3-17H16 666 Producing 5.486% 4.402% 5.802% Van Buren Love 10-12 #2-17H 938 Producing 5.486% 4.091% 5.409% Van Buren Love 10-12 #1-17H 3,407 Producing 2.621% 2.484% 3.230% Van Buren Linn 10-12 #4-8H16 3,930 Producing 2.621% 2.484% 3.230% Van Buren Linn 10-12 #3-8H16 513 Producing 0.684% 0.000% 0.000% Van Buren Lewis 11-13 #3-30H 1,754 Producing 0.684% 0.000% 0.000% Van Buren Lewis 11-13 #2-30H 2,000 Producing 0.684% 0.000% 0.000% Van Buren Lewis 11-13 #1-30H Spud 7.617% 3.750% 5.000% Faulkner Lagasse Investments Inc. 8-12 #1-8H 1,477 Producing 0.000% 2.534% 2.534% Van Buren Koone-Hillis 10-16 #1-34H27 Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 46 Appendix • Fayetteville Shale Well List (continued) Permitted 1.953% 2.109% 2.813% Van Buren Rothwell 9-12 #2-15H 2,153 Producing 1.953% 2.109% 2.813% Van Buren Rothwell 9-12 #1-15H Permitted 0.781% 0.000% 0.000% Conway Roger Stratton 8-16 #1-35H 2,614 Producing 1.786% 2.194% 2.912% Van Buren Robinson 9-13 #2-24H 2,724 Producing 1.786% 2.194% 2.912% Van Buren Robinson 9-13 #1-24H 1,090 Producing 0.781% 0.000% 0.000% Van Buren Quattlebaum #2-32H 1,717 Producing 0.781% 0.000% 0.000% Van Buren Quattlebaum #1-32H Permitted 5.930% 4.245% 5.561% Conway Polk 9-15 #5-30H Spud 5.930% 4.245% 5.561% Conway Polk 9-15 #4-30H 4,173 Producing 5.930% 4.245% 5.561% Conway Polk 9-15 #3-30H 1,966 Producing 5.930% 4.245% 5.561% Conway Polk 09-15 #2-30H 1,614 Producing 5.930% 4.245% 5.561% Conway Polk 09-15 #1-30H 2,895 Producing 0.107% 0.000% 0.000% White Pennington 8-6 #2-19H18 2,487 Producing 0.781% 0.000% 0.000% Van Buren Nelon 9-13 #2-26H Spud 0.781% 0.000% 0.000% Van Buren Nelon 9-13 #1-26H Spud 0.862% 1.379% 1.839% Cleburne Mulliniks 9-12 #6-35H2 Producing 1.716% 2.746% 3.661% Cleburne Mulliniks 9-12 #5-35H36 Producing 1.335% 2.136% 2.849% Cleburne Mulliniks 9-12 #4-35H36 Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 47 Appendix • Fayetteville Shale Well List (continued) Spud 2.718% 4.705% 6.082% Conway Wahrmund 7-15 #1-5H Permitted 0.039% 0.000% 0.000% Van Buren Trahan 11-14 #1-30H Spud 2.343% 3.281% 4.375% Van Buren Thacker 9-12 #2-21H 1,999 Producing 2.343% 3.281% 4.375% Van Buren Thacker 9-12 #1-21H 68 Producing 1.563% 0.938% 1.250% Pope Tackett #1-33H 3,447 Producing 0.161% 0.000% 0.000% Van Buren Smith 11-13 #4-30H31 2,937 Producing 0.139% 0.000% 0.000% Van Buren Smith 11-13 #3-30H31 954 Producing 0.684% 0.000% 0.000% Van Buren Smith 11-13 #2-30H 2,679 Producing 0.684% 0.000% 0.000% Van Buren Smith 11-13 #1-30H Permitted 1.953% 2.109% 2.813% Van Buren Sequoyah 9-12 #4-15H 569 Producing 1.953% 2.109% 2.813% Van Buren Sequoyah 9-12 #3-15H Permitted 1.953% 2.109% 2.813% Van Buren Sequoyah 9-12 #2-15H Permitted 1.953% 2.109% 2.813% Van Buren Sequoyah 9-12 #1-15H 4,648 Producing 1.504% 0.000% 0.000% Conway Salinas, Reyes 9-15 #2-20H 5,429 Producing 1.504% 0.000% 0.000% Conway Salinas, Reyes 9-15 #1-20H 866 Producing 0.000% 6.423% 6.448% Van Buren Russell #2-33H 1,145 Producing 0.000% 6.250% 6.250% Van Buren Russell #1-33H 3,001 Producing 0.381% 0.000% 0.000% Conway Roy Brockman 9-15 #1-24H Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 48 Appendix • Fayetteville Shale Well List (continued) Spud 2.344% 3.288% 4.385% White Webb 9-6 #1-35H Test Rate (Mcfd) Current Status DMLP RI DMOLP NRI DMOLP WI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 49 Appendix • North Dakota Horizontal Bakken Well List Permitted TBD TBD Mountrail En-Will Trust B-157-94 Permitted TBD TBD Burke Douts 4-11H Permitted 8.127% 1.161% Dunn Dirkach 34-9H 1417 Producing 1.028% 0.129% Williams DeAngelis 41X-21 Spudded 0.078% 0.010% Burke Dale Van Berkon 11-18H 477 Producing 1.028% 0.129% Williams Crowder 41X-21 Spudded 4.644% 0.580% Mountrail Craft 21-16H 431 Producing 0.457% 0.072% Dunn Brown 24-9H Spudded 1.028% 0.129% Williams Boucher 41X-21 Spudded 5.805% 0.726% Dunn Borth 41-14H 375 Producing 0.457% 0.057% Dunn Bergan 14-22H 713 Producing 0.463% 0.159% McKenzie BB-Rice-150-95-0718H-1 267 Producing 0.893% 0.263% McKenzie BB-Olson-150-95-0817H-1 103 Producing 0.234% 0.029% Burke Barenthsen 11-20H Spudded 0.781% 0.098% Mountrail Austin 23-32H Spudded 18.575% 2.322% Mountrail Austin 20-29H 339 Producing 1.741% 0.279% Divide Arvid 1-34H Permitted 0.223% 0.028% Williams Almer 11-X-6 Test Rate (Bopd) Current Status APO NRI BPO NRI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 50 Appendix • North Dakota Horizontal Bakken Well List (continued) Permitted 0.065% 0.008% Divide Long 1-5H 359 Producing 0.823% 0.103% McKenzie Lone Beaver Creek 21-17H 476 Producing 0.411% 0.008% McKenzie Lillibridge 11-23-H Spudded 2.322% 2.902% Divide Lila 1-36H (Re-entry) Spudded 0.457% 0.057% Dunn Lil J. Reiss 34-9H 517 Producing 0.822% 0.103% McKenzie Levang 4-28 H Spudded 0.052% 0.007% Williams Lawrence 1-24H 355 Producing 0.040% 0.005% Williams LaVerne Peterson 1-12 47 Producing 0.558% 0.070% Williams Langager 14-X-5 Permitted TBD TBD Dunn Kovaloff 14-9H 765 Producing 1.542% 0.193% McKenzie Kirkland 1-33H Spudded 0.925% 0.116% McKenzie Jerome 1-15H 163 Producing 9.288% 1.161% Dunn Hueske 12-1H Permitted TBD TBD McKenzie Henderson 16-29H Spudded 2.150% 0.269% McKenzie George 1-18H Spudded 5.805% 0.726% Dunn Gehrer 21-14H Spudded 0.457% 0.057% Dunn Gaugler 31-15H 361 Producing 0.861% 0.108% Mountrail Erie 44-19H Test Rate (Bopd) Current Status APO NRI BPO NRI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 51 Appendix • North Dakota Horizontal Bakken Well List (continued) Spudded TBD TBD Burke Running 24X-20 817 Producing 6.966% 0.871% Mountrail Risan 1-34H 430 Producing 0.457% 0.057% Dunn Reiss Ranch 24-10H Permitted TBD TBD Burke Powell 16-24H Spudded 2.322% 0.290% Mountrail Pederson 1-33H 660 Producing 0.091% 0.015% Williams Omar 1-1H Permitted 0.411% 0.051% McKenzie Ole 1-29H Permitted 1.203% 0.150% McKenzie Nordeng 1-8H Permitted TBD TBD Burke Nickols Trust 16-28H Spudded 0.065% 0.008% Divide ND State 43X-16 2 Producing 31.250% 3.906% McKenzie Mule Creek Fed. 34-13H 300 Producing 0.180% 0.026% McKenzie Morgan 34-21H Spudded 0.617% 0.077% McKenzie Merton 1-3H Permitted 0.114% 0.017% Williams McGregor 1-15H 53 Producing 0.098% 0.016% Divide McGinnity 1-15H 110 Producing 0.823% 0.103% McKenzie Mary Ann 1-15H 387 Producing 0.273% 0.046% Williams Marlene 1-10 Spudded 3.060% 0.383% McKenzie Mack 1-2H Test Rate (Bopd) Current Status APO NRI BPO NRI County Well Name |
 Dorchester Minerals, LP NASDAQ: DMLP 52 Appendix • North Dakota Horizontal Bakken Well List (continued) 17 Producing 4.644% 0.580% Williams Z I Seamon 8-9 H 117 Producing 0.413% 0.068% Mountrail Torgeson 15B-2-2H Spudded 0.055% 0.007% Mountrail Thor-Erie 44-18H 1271 Producing 0.668% 0.084% McKenzie Thompson 44X-20 Permitted TBD TBD Burke Tande 16-23H 189 Producing 0.145% 0.018% Williams Susan Kaye 6-7H Permitted TBD TBD Mountrail Strobeck 1-35H 463 Producing 0.040% 0.005% Williams Stacey Lynne 1-12H 307 Producing 0.098% 0.015% Divide Skar 1-21H Spudded 0.024% 0.003% Burke Sig 21X-6 445 Producing 1.161% 0.145% Divide Shonna 1-15H 327 Producing 8.427% 1.053% Dunn Scott 24-31H Test Rate (Bopd) Current Status APO NRI BPO NRI County Well Name |