NGL Rich, Fast payback, Oil & Gas Investment

1. TEXAS
UPSTREAM
&
MIDSTREAM
NATGAS,
NGL’s
&
OIL
PLAY
Investment:
Seeking
Up
to
USD
$10
Million
for
Development
Terms:
75%
Before
Payout/50%
After
Payout
Initial
Funding:
$1.5
Million
Payback:
12
Months
Property
Details:
• 74%
Working
Interest
in
4,000
drillable
acres
in
prolific
Oil
&
Gas
producing
Crockett
County,
Texas
• Natural
gas
(sweet)
reserves:
PUD
13.9
Bcf;
11
Bcf
probable
• 2
producing
gas
wells
with
NGL’s
completed
at
4500’
and
4
more
ready
for
tie-­‐in
(1
mile
from
pipe)
• Two
wells
producing
60
Mcf
per
day
or
revenue
of
$4000
per
month
to
be
stimulated
to
150~250
Mcf/day
• Pay
zone
200’~300’
• 5
bbls
of
NGL’s
produced
for
every
1000
cubic
feet
of
gas
• 20%
Premium
on
high
BTU
value
of
Natural
gas
• 5
potential
hydrocarbon
bearing
horizons
including
oil
• Technical
report
and
due
diligence
package
available
upon
signing
NDA
• Year-­‐round
access
and
close
proximity
to
services
• Strong
management
and
experienced
well
operator
• Landowner
buyout
of
remaining
working
interest
negotiated
Upstream
Development
Plans:
Phase
1
• 6-­‐Well
Program:
Stimulate
2
producing
wells
and
tie-­‐in
4
more
to
produce
150~300
Mcf/day
per
well
• 6-­‐Well
Program
Net
Revenue
Potential:
$6
million
in
first
year
• Development
of
exploration
oil
play—producing
wells
to
the
north
(mapping
in
process)
Phase
2
• 23
other
wells
to
be
re-­‐activated
and
12
new
drills
• Exploration
drill
on
oil
horizon
• Test
high
pressure
NGL-­‐rich
deeper
horizons
Midstream
Development
Plans:
• Construct
onsite
midstream
NGL-­‐extraction
processing
plant
• Increased
revenue
by
keeping
value-­‐added
profits-­‐-­‐5
gallons
of
condensate/oil
for
per
1000
cubic
feet
of
nat
gas
• On
average,
$12.48
per
mcf
from
midstream
onsite
processing
Capital
Requirements:
• $50,000
to
rework
existing
2
producing
wells
(30
days)
• Extension
of
current
leases
$375,000
• Rework
and
pipeline
4
additional
wells
cost
$750,000
and
gas
processing
hardware
• G&A
and
contingency
$175,000
• Investment
banking
fees
$150,000
• $8.5
million
for
new
drills
and
workovers,
and
midstream
infrastructure