Ann: Transforming New Standard Energy , page-195

Time for some more "anecdotal evidence".

For those so inclined this information can be garnered from the TX Railroad Commission website. I gathered this simply to "arm myself" with data should I get responses from mgmt.


As a side note, I did not know that all gas is being flared (read not monetized) from the Lagunillas Camp and Peeler Ranch wells - so says the Commission.

As a further side note, EOG is our neighbour with acres in Peeler ranch (obviously different lease)


Now for the real information - lease production

Total Oil production for Lagunillas Camp - 86,611 bbl oil from Jan 2010 through Oct 2013.

Total Oil production Peeler Ranch #3H (completed 10/29/12) + #4H (completed 06/17/13) is 62,958 bbl oil from Dec '12 through Oct 2013.

Big difference in production between those two leases.

I made a nice graph below - you can see where #4 comes online. Unfortunately TXRRC doesn't give the producing days so its hard to judge the curve but you get the idea... 1st mth seems like maybe 8,000 bbls 2nd 5,000, 3rd 4,000, ...

So 63,000 bblo (gross) in 11 months from 2 wells that cost $7M a piece approx.

If you assume a Netback of $35/bblo (royalties, taxes, LOE, and Interest (maybe)) then NOP of about $2.2M - and you still owe $14M in Debt. Just by way of example though.

Just for interest (so you guys know I am not making this stuff up) here is the W-4 for the Peeler Ranch #3H well (shows IP 24hr)