Ann: Transforming New Standard Energy , page-59

Just on the EFS piece, can not see how any informed poster can call this a good transaction for NSE.

For example:

"August 8, 2012

Magnum Hunter has closed on the acquisition of 1,885 net mineral acres located in Atascosa County, TX, for approximately $2.35 million ($1,246/acre). With this acquisition, the Company now has approximately 7,278 gross acres and 5,212 net acres located in Atascosa County, Texas.

The acreage has both Eagle Ford Shale and Pearsall Shale potential and gives the company approximately 10 additional net drilling locations in the Pearsall Shale and 10 – 13 additional net drilling locations in the Eagle Ford Shale. This now gives the Company approximately 40 net Pearsall locations assuming 750' spacing within its Atascosa core area..."

http://www.magnumhunterresources.com/pressreleases.html


The above would be Peeler Ranch (slide 12).

Doesn't look like MHR did much with it - flipping it to NSE for a lot more than $1,246/acre!!!

Going back further, MHR drilled a couple of Atascosa County wells in Nov/Dec of 2010. The 30 day IP for those wells (Lagunillas Camp #2H & Lagunillas Camp #1H) were a mere 145 boepd and 105 boepd respectively

Compared to the many wells they drilled in Lavaca ands Gonzales counties in that timeframe which were coming in at an IP30 day rate of 450 - 640 boepd.

This is by no means the prime area (that was sold to Penn Virgina in April 2013).


I could go on but I wont. Not why I invested in NSE. Dammit!