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Agreement for professional services. waste to energy solutions
1. EXECUTIVE SUMMARY - BRIGHT 1H HORIZONTAL OIL/GAS WELL
BACKGROUND:
Southlake Energy, Inc., (“Southlake”) an independent energy company
based in Fort Worth, Texas, is scheduled to drill its third horizontal
well (the Bright 1H) to the Marble Falls formation on leases it
controls in Jack County in the last half of June 2012 or the first
half of July 2012. Southlake’s first horizontal well (the Birdwell 1H)
drilled in 2011 tested at over 600 barrels of oil per day and over
850,000 cubic feet of natural gas per day. The Company plans to re-
complete the first well in June 2012, when it will seal off some of
the original perforations in the horizontal section of the well and
shoot some new perforations in the horizontal section of the well.
Upon finishing the re-completion of the first well, Southlake
anticipates producing the well at 300 to 400 barrels of oil equivalent
(“BOE”) per day. The horizontal wells drilled into the Marble Falls
formation are expected to produce hydrocarbons for 12 to 15 years with
an anticipated annual decline curve of 6% to 7%.
The company’s second well will enter the final phase of its completion
on May 28, 2012 and is expected to be on-line and selling oil and gas
in the second week of June 2012. Southlake expects the 2nd well (the
Birdwell 2H) to produce 300 to 400 BOE per day. After the completion
of the Birdwell 2H and the re-completion of the Birdwell 1H, Southlake
will have its contract driller deliver the drilling rig to the site
and begin drilling the Bright 1H horizontal well.
The Birdwell 2H and the Bright 1H well’s vertical sections are 90 feet
apart on the same drilling pad and their horizontal sections will
travel in opposite directions. Southlake shot 4.5 square miles of 3-D
Seisimc on the leases it controls in Jack and Young Counties, Texas
(the leases consist of 1,067 contiguous acres). Southlake has also run
two full suites of well logs on the Birdwell 1H and the Birdwell 2H,
thus the Company has gathered significant science on the lease where
the Bright 1H (an offset to the Birdwell 2H) will be drilled.
OPPORTUNITY:
The company is selling working interest in its Bright 1H well. One
working interest point is valued at $55,000.00. The company has up to
40 working interests available on a first come first serve basis.
The Intangible Drilling and Completion Costs for the Bright 1H well
will equal 76% of the subscription price. The subscription price is a
turnkey price covering drilling and completion of the Bright 1H well.
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2. SCENARIOS:
The following scenarios are calculated based on 28 Production days a
month. All royalties, monthly operating expenses, state production or
severance taxes and PROFESSIONAL SERVICE FEES have been subtracted
from gross monthly income to arrive at the return to investors shown
below.
Scenario 1: 300 BOE per day at $80 oil is estimated to provide an
annual net income to owners of 1% working interest of $53,928 or an
annual income of $1,898,265 to the investor who purchases the
remaining 40% working interest in the Bright 1H well.
Scenario 2: 200 BOE per day at $100 oil is estimated to provide an
annual net income to owners of 1% working interest of $56,929 or an
annual income of $2,003,900 to the investor who purchases the
remaining 40% working interest in the Bright 1H well.
In considering an investment into the Bright 1H well, the Company
wants any potential investors to understand that production levels may
range anywhere from 150 BOE per day to 600 BOE per day. Also each
investor must realize that the price of oil and natural gas is a
volatile number and is prone to significant increases and decreases.
If you have interest in participating in Southlake’s Bright 1H well,
please see the attached agreement and the person who prepared this
document will provide more information if requested.
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3. AGREEMENT FOR PROFESSIONAL SERVICES
Agreement made this ____ day of _______________, 2011, between
the undersigned _________________________ and or Assigns, Affiliates
and Subsidiaries (owned wholly or partially) and personally,
hereinafter referred to as “CLIENT’ and ____________________ and or
Assigns, Affiliates and Subsidiaries (owned wholly or partially) and
personally, hereinafter referred to as “Service Provider”.
Recitals
WHEREAS, the Client agrees to engage the Service Provider to
render services on the terms and conditions provided in this
Agreement; and
WHEREAS, Service Provider desires to render professional services
for Client as provided in this Agreement;
NOW, THEREFORE, Client hereby engages the Service Provider and in
consideration of the mutual promises herein contained, the parties
agree as follows:
Service
Service Provider agrees to provide access to Energy Company
drilling the Bright 1H well in Jack County. Client agrees to act in
good faith in purchasing one or all available working interests in the
Bright 1H well.
Fees
1. Clients and/or assigns agree to pay Service Provider a fee of
twelve per cent (12%) of any and all working interest in the Bright 1H
well purchased by the Client. Clients and/or assigns further agree to
pay Service Provider a sum equal to twelve percent (12%) of any and
all working interests in any and all additional wells purchased by the
client from the Energy Company and/or its assigns. The fee is to be
paid as twelve (12%) percent of any and all working interest and will
be owned by the Service Provider paid on a monthly basis by the Energy
Company.
Disclaimer
2. Service Provider in no way guaranties the number of barrels of
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4. oil that will be produced by the Bright 1H well or the cost of a
barrel of oil at any time in the future. In addition, Client agrees to
hold Service Provider harmless against loss, damages or loss of
potential financial opportunities incurred by Clients investment in
Bright 1H well.
Entire Agreement
3. This Agreement supersedes any and all other agreements, either
oral or in writing between the parties hereto with respect to the
subject matter hereof, and no other agreement, statement or promise
relating to the subject matter of the Agreement which is not contained
herein shall be valid or binding.
Governing Law
7. The validity of this Agreement and of any of its terms or
provisions, as well as the rights and duties of the parties hereunder,
shall be governed by the laws of the State of Texas and shall be
performable in Tarrant County, Texas.
Amendment
8. This Agreement may be amended by the mutual agreement of the
parties hereto in writing to be attached to and incorporated into this
Agreement.
EXECUTED at _______________________, Texas on the date
hereinabove first written.
Client
By: Print Name:__________________________________
Signature:__________________________________
Service Provider
By: Print Name:___________________________________
Signature:___________________________________
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PROFESSIONAL
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