|
|
|
|
|
|
||||||
|
               |
|
GeoSpectrum is offering for sale the subject prospect which is located in north Eddy County, New Mexico. The prospect is productive in the Sever Rivers, Queen, San Andres and Grayburg sands from about 3000’ to 4000’. These formations could be immediately water flooded to maximize production once the lease has been completely developed. The prospect was identified using well control and offset production data. Nearby producing wells have cumulative production averaging 80 MBO. The wells will be drilled with horizontal laterals to maximize commercial production in the above formations. Sixteen wells with horizontal laterals will be drilled to develop the 640 acre prospect. Risked reserves for the prospect are 1.6 MMBO and 1.6 BCFG assuming 16 wells are drilled. The BFIT economics for the project are based on 75% working interest (WI) and a 75% net revenue interest. Total costs to the 100% WI is $1,400,000 for the first well which includes a $300,000 fee to cover our leasing and geological costs. Additional wells will cost $1.1 MM to drill and complete. GeoSpectrum will retain a 25% WI in the project and be carried to casing point on the first well on the prospect. Below is a preliminary BFIT economic summary for a 75% working-interest owner in the project.
DRILL & COMPLETE COSTS: $13.675 MM; RESERVES: 1.2 MMBO AND 1.2 BCFG If your company is interested in reviewing the interpretation or terms of this prospect with GeoSpectrum, please contact Dr. James J. Reeves at the contact phone numbers below. You will be asked to sign a non-disclosure and non-compete agreement that will cover the specific area of the prospects. This agreement will be effective for two years from the date of execution. This prospect is subject to prior sale. All reasonable offers will be considered. Please contact us if you have any questions or desire additional information on the prospect.
Dr. James J. Reeves, Ph.D. |
|
||
|
P. O. Box 3399, Midland, TX 79702-3399 |
||||||
