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Photo's of well head & Burm WDS RESOURCES INC. October 24, 1994 Mr. Gary Sieb, Director of Planning P.O. Box 478 Coppell, Texas 75019 RE: Photo's of gas well head and Burm. Please fred enclo~l two (2) maps and ~ix (6) photo~. The location of the gas well is marled on both maps, and, as you can see, it is in a ~ traffic public area known a~ Runaway Bay. This well location is approximately gven (7) years old. It is owned and operated by ~h (aLso known as Lone Star Gas Co.) Energy and has been a good neighbor to ~t¢ . community. LE. no leaks or spills. I took these photos Saturday, October 22, 1994. There was standin8 water that was still contained from all the heavy rain we have had lately. Th~ well head that Tom Kelly (who is 5'8'* tall) is standing next to is secured via a cyclone fence with bobwirc on top. Thc tank battery is secured in the same manor. Gary, unlike this location, wc would · landscape our Bunn with sod and shrubs, etc. The tanks we propose to install would be ten (10) feet tall instead of ftt~een (15)fext tall as tho~c in the picture. Thc separation and treating equipment would also be of low silhouette and the meter(s) box(s) will be landscaped. I hope the enclosed gives you a better vision and understanding of the surface equipment, as well as how wc will bca good neighbor to thc community. Look forward to speaking with you soon. orin End.-3 5025 Arapaho Road, Suite 350, Dallas, Texas 75248 (214) 661-8885 - Fax (214) 661-1618 16 8 9 7 4 RUNAWAY BAY - I Cellna Prosper New Hop McK, Frigo WDS WDS RESOURCES INC. Reference: West Dallas County Barnett Shale WDS Resources is continuing to expand its lease holdings in west Dallas County and the surrounding area for the purpose of developing high volume natural gas production and large natural gas reserves in the Barnett Shale. Each well, based on our studies and confirming data from the Gas Research Institute, is estimated to have reserves in the range of 4BCF and is expected to command a premium price due to its mediate proximity to the Dallas-Fort Worth end user natural gas market. The Barnett Shale is the largest single contiguous gas-condensate reservoir in the state of Texas. It covers approx/mately 30,0000 square miles and it promises to become, in the near future, the hottest on-shore drilling site in the United States. The Barnett Shale has been found to be hi*~hly productive in nearby Wise and Denton counties based on the incredible perfomance of the Newark East Barnett Shale Gas Field. The Newark field has produced over 40BCF of natural gas and 58,000 barrels of condensate as of July 7, 1994; see Dwights' graph. Mitchell Energy continues to add new wells in the Barnett Shale almost weekly. The same Barnett Shale which is producing in the Newark East Gas Field is now known to exist in west Dallas County with the top of the formation located at a depth of 8650' and the bottom approximately at 9090'. The presence and location of the Barnett Shale in west Dallas County was confirmed by analysis of Magnolia Petroleum's Tfi~ Estate Number One drilled, in 1955, to a depth of 10,231' close to the intersection of Valley View and Beltline Roads near DFW Airport. Our Geologist, after examination of the dry samples of the Ma..~olia well, has confirmed that our Dallas County locations have probable natural fractures greater than those in the Newark East Gas Field. Data available from the Gas Research Institute confn'ms the probability of ti'ds fracture advantage which is based on the theory of increased fractures due to the nearby Ouachita over-thrust which runs on a north-south line through Dallas County. See the Geologic Report. Careful consideration of the economics suggest a twenty year life span for each well and, based on anticipation of higlaer natural gas prices in the near future and the advantage of md-user proximity, we can expect each well to gross $16,000,000.00. Readers should be aware that this reporter, as the Senior Vice President of W-DS Resources, stands to gai~n~ from the completion of this project;, however, I have reported the facts as I know n the facts, I do recommend this project without refiervation. Petroleum Engineer 5025 Arapaho Road, Suite 350, Dallas, Texas 75248 (214) 661-8885 - Fax (214) 661-1618 GEOLOGIC REPORT CALLEJO BARNETT PROSPECT DALLAS COUNTY, TEXAS INTRODUCTION During the last ten years, the Barnett Shale has become a significant gas target in the Fort Worth Basin area. The primary objective of this project is the ubiquitous shale play of the Barnett. The full economic potential of the shale play has not yet been realized especially eastward toward the Ouachita foldbelt. The Callejo Project is the first deep well activity in Dallas County since 19,$5. It is located.in the northwest part of Dallas County, on the JNO E. Holland A-614 survey, of 130 acres. The project is situated offsetting production and the foldbelt. The Callejo project will, for the first time, tap this viable source of gas. PRODUCTION HISTORY Mitchell Energy Corporation and several other companies have had a intensified exploration program for the last ten years pursuing the Barnett Shale in Denton and Wise Counties. The Newark East Field, which the Callejo Prospect offsets, has so far produced 40 billion cubic feet of gas and 58,000 barrels of condensate from 130 wells (see Dwights' graph). Mitchell Energy's success has been amplified by the development of a completion technique that was developed in conjunction with the Gas Research Institute. Mitchell Energy has completed and stimulated over I00 wells in the Barnett shale using a massive hydraulic fracture treatment. This completion technique should extend to other areas of potential Barnett Shale production including Dallas County. REGIONAL GEOLOGY The Barnett Shale is a Mississippian shale deposit during the subsidence of the Fort Worth Basin by continued collision of the North American and South American/North African tectonic plates to form a super-continent called Pangaea. The extreme eastern margin of the Fort Worth Basin is obscured by metamorphic, overthrust rocks of the Ouachita foldbelt. This orogeny was initiated in Late Mississippian time and is approximately contemporaneous with the deposition of the Barnett Shale. Thesea inundated this shelf area and the southern Oklahoma aulacogen. The dark organic muds and a few thin limestones of the Barnett were deposited along this adjacent shelf area to the aulacogen. The shale thickens to the northeast and east toward the aulacoqen. BARNETT SHALE OF DALLAS COUNTY Only one well in Dallas County, the Trigg Est. =1, has been drilled deep enough to reach the Barnett shale. The well was drilled by Hagnolia Petroleum Corporation in the spring of 1955. From recently studied well samples, the Barnett shate in the Trigg well is similar to the Denton and Wise County wells. The shale is 440 feet thick and is a black, dense, soft, organic-rich shale. The shale has interbedded thin units of black to white, microcrystalline to massive limestones and light brown, very fine-grained sandstones. These beds may also be conduits for better gas production in the shale. Fractures were found approximately perpendicular to bedding planes filled with calcite. Other microfactures were along bedding planes either being filled with calcite or bedding planes propped open with cavity calcite crystals along the edges. The Barnett shale has several distinctive log characteristics. In general, resistivity values of shales are usually low; about l 0 ohms, but the Barnett shale resistivity values are high around 1 O0 ohms. The Barnett has an anomalously strong gamma ray count between 150 to 400 APl units a result of uranium salts. The microlog shows some cross-over which suggest probable microfracturing. CONCLUSION A Gas Research Institute study indicates that a 160 acre reservoir of 250 feet to 300 feet of Barnett Shale reservoir should recover 1 to 1.5 billion cubic feet of gas. With over 400 feet of shale in the Trigg well, the recoverable reserves should be substantially higher with as much as 4 billion cubic feet of gas and a plus for drilling this project. Based on the development of the Barnett Shale in Denton and Wise Counties and based on analysis of the Magnolia Petroleum, Trigg Est. ~1 well, the Callejo ~1 is an exciting prospect with an excellent upside. Additionally, effort should be made to reenter the Magnolia, Trigg well. Charlotte D. Klenk Petroleum Geologist 10000 Loose: NEWARK EAST FIELD SUMMARY Dw~ghts Rotriova] Code: 000. 000. SUMMARY 10000 9 ~00000 1000 1000 __ ~oooo 1o0 Ioo 9 9 IDaC 8 10 to 100 BP 03 B4 05 06 07 80 09 90 91 92 93 94 95 96 97 98 99 O0 County: State: IX Fie]cl~. NEWARK EAST [BARNETT} Reservoir: BARNETT Operator: Oil Cum: 57633 Gas Cum: 40036299 F.P. Date 08-82 /ncat~nO; Date: 07-07-94 SURVEY PLAT -- · Being a tract or parcel of land ;ituated in thc John E. itolland Survey, Abstract No. '614, Dallas County, Texas, andbeing a part of a tract conveyed by Southland Life Co. Co W.W. Somerville'and Vile Anna S~nders ,filed September 12,1940, Deed Records Dallas CounCT, Texas, amd being more particularly described as ~EGI~ING a~ a poin~ in the North line of ~wea~t Rosd, sa(d poin~ alno being Wcs~ 417 feet from the in~ersec~ion nf the Wes~ line of Coppell Road ui~h thc North line of Thweatl Road, said poin~ also being thc Sou~hwesc corner of a ~rac~ as recorded in Volume 2366, ":~ '-pag~ 326, Deed Records Dallas County, Tewa~; " ~NCE ~ST and along ~he North line of ~eat~ Road a distance of 924.74 feet a poin~ ~NCE NOR~ a distance of 1390.80 feet a point for corner; ~NCE ~ST a ~istance of 1345.11 fee~ a point in ~he Wea~ line of CoppeI1 Road for . ~NCE S. 00" Ii" 30" W. and along ~he West line of Coppell ·Road a distance of 882.09 ."" ~O' a point in the North ea~: corner of a tract as recorded in Volume 2366, page 326, ' ': Deed Record~ dallas County, ~cxa~,for corner; ' '.~"~N~'~ST wl~h.~he North line of said ~rac~ a distance of 225.0 fee~ a poin~ for co.er;: ....~0~ with the Wes~ line of said Crate a distance of .150.0fee~ a point for corner;.~ .-.'. ~NCE ~ST wi~h the Southerly line of said tract a distance of 192.42 fee~ a .. · %~NCE S0~ wi~h the most Westerly lime of said trac~ a distance of 358.71 fee~ :~'"' "~he.~ace of BEGI~IN~ and containing i 682,7'22 80 ~quare feat or 3g 63 acres of land mot ..~ a~ "'-  ' ~IT~ '". ~', ' T 3~ 63 . ~ · O' , PREPARED BY ........ W.D.$ COMB NXME CATEGORY - School Tax WELL t/OR LEASE .... ~VAL. DATE 20-DMG~94 ~T.!TE .... TX FIELD OR RESERVOIR - BkPJ~ET'I' $t~5E EFFECTIVE D~kTE JA~-95 OPE~TOR - WP8 ............................................................. MET OPEtlZTINC REVENUE ........... ~T ~PERATING EXPEI{S~$ .... --- GROSS PROD.- .... ~ET PROD --- PRICE PRICE OIL GAS TO~AL DIR& INDIR S~V & ADV ~gT~ Y&%R OIL-BBLS GAS-MCF OIL-BBLS GAS-MCF oIn-$ GAS-$ REVEIfdE-$ REV~E-$ REVI~E-$ OPR EXP-$ R T~SP-$ EXP~MES-$ EX~N~IAL DECLt~E 1995 0 547501 O 438000 $0.00 $2.25 $0 $965,501 $985,501 ~24,000 $!5,226 $39,226 1996 0 519644 0 415716 0.~ 2.43 0 1,010,189 1,010,189 2~,480 15,607 40,087 1997 0 467680 0 374144 0.~ 2.62 0 981,904 981,904 24,970 15,170 1~ 0 420912 0 ~$6730 0.00 ~.83 0 954,410 ~54,~10 25,469 14,746 40,215 1999 0 27~821 0 303057 0.00 3.06 0 927,687 927,687 25,978 14~333 40,3tl ~000 0 340939 0 272951 0.00 3.31 0 901,71l 901,712 26,498 13,931 40,429 2001 0 306845 0 2454?6 0.00 3.57 0 876,4~b ~'/6,~65 27,02~ ~,54~ 40,569 2~2 0 276161 O 220929 0.00 3.~6 0 851,924 851,924 27,568 13,162 40,731 2~3 O 248545 0 19~36 0.~ 4.16 0 82~,671 82~,071 28,120 12,794 40,914 2~4 0 2~2691 0 17~953 0.00 4.~ 0 ~04,884 EO4,E86 2~,6~2 12,435 41,118 2005 0 201222 0 l~105~ 0.00 4.~d 0 7R2,ZLO 7E2,3~0 29,2~ 12,087 41,343 ~6 0 1~11~ 0 1449H2 0.~ B.~ 0 724,7~0 724,760 29,841 i1,198 41,039 S~T 0 4113251 0 9290601 ~. W~. 0 10,629,860 10,629,860 321,~90 164,231 486,121 R~. 0 1~85965 0 I108772 AVG. AVG. 0 5,543,859 5,543,~59 651,744 85,653 737,396 ~kL 0 5499216 0 4~99373 $0.00 $3.6~ 0 16,17~,719 16,173,719 97~,6~4 249,884 1,223,51~ ~AL PUN. CL~. OPR ~ F~ ....... PR~ ~R~ P~FILE ..... Op~T~N~ ~TAL ~. P~ CaR ~ OS~ F~ ~ D~T D~a ~ DIa NPV 199E $970,101 0 0.0 0.0 970,101 616,376 970,101 5 ~,~1,472 45 ~997 ~941,W4 0 0.0 0.0 941,764 1,~,140 941,764 ~ H,77~,041 50 199~ $914,1~ 0 0.0 0.0 914,196 2,472,~36 914,1~ 10 5,884,126 55 803,i08 1999 $~7,376 0 0.0 0.0 ~?,376 3,359,712 887,376 12 ~,140,393 dO 2~0 SRdt,2R3 0.0 0.6 861,283 4,$20,995 R61,~13 15 4,304,781 65 547,635 2~1 $835,~96 0.0 0.0 R35,~ 5,056,~90 835,896 18 3,646,715 70 445,445 ~002 $811,194 0.0 0.0 811,194 5,R6~,OR~ 811,194 ~ 3,287,981 75 355,9~9 2003 $78S,15~ 0.0 0.0 7~7,15R ~,655,242 787,158 25 ~,588,1~d 80 276,997 2004- $743,748 0.0 0.0 763,~68 7,419,016 763,T~ 30 2,080,964 ~5 206,709 2~ $7~1,~7 0.0 0.0 7~1,007 ~,1~0,017 741,007 ~5 1,~98,~10 90 REM. 4,806,463 0 0.0 0.0 4,806,463 4,SOft,463 4,806,4~3 E~ LIFE VRIR~REkTER ~TIL 14,950,~01 1,300,000 0.0 0.0 13,dBO,RO1 13,650,201 14,950,201 NPV ~ SELE~ ~E- 10.0{ NET ~/I~EST ...... 11.~0 NE~ ~S~/~E ..... $/~E $2.95 UL~ OIL ~E~V/~ .... ~ 0 I~ ~R ~ - ~id-~ ~ RET~/~E --- $/~i $31.03 ULT ~ ~V/IC~ *-~ RCF 17,185 PlYO~ ............ YB 1.% ~ H~RE/~E --- $~E $3338 UL~ OIL RE~V/t~E-~-- ~ 0 $ P~ N~ HIT P~D ~ZE OIL ~ ~TE --- BBL/DIY 0.0 ~Z G~ RE~V/ACRE-F?-- ~CF 19 8/8 OIL RES ....... ~L G~ E~ 5Ti --- ]~F/BIY 71.~ INIT~ ~.I. - ............ % 100.00~0 ~/l ~ ~ ....... ~CF 5,499,21d DECU~ ~TE ....... { i0.0 INITXL REV~ I~. - .... { gO.~O00 NET ~ R~ ........ HCF 4,399,2?3 E~N~ - N .......... 0.0 ~IN~ nR~R ~T. - ..... % SO,O0000 ULT OIL RE~V ..... ~L 0 P~D. nYSK P~O~ --- { 1~.0o T~ [ E~IP RISK FX~R- { 100.00 ULT G~ ~V ...... H~ -- RESERVE & ECONOMIC REPORT -- L~ER£ST O~ER ..... I}WESTOR FILE N~E ~S COL~T¥ --- DALLAS wELL &/OR LESE .... UAL. DATE 20~C-94 STATE .... ......................................................... NET OPE~.T~G REVUE ........... N~ OP~TING E~ENSES .... --- GROSS PDD.-- --- N~ PROD --- P~IeE P~CE OIL C~ T~AL DIR & tNDIR gU & ADV Y~a O~L-BB~ GAS-MCF OIL-~LS GAS-MCP O[L-$ g~-$ R~E~E-$ REV~-$ R~E~E-$ OPR EXP-$ & T~SP-$ E~ENSES-$ E~TItL DE~E 19~5 0 547501 0 438000 $0.00 $2.25 $0 $9~5,501 $985,501 $24,000 $6,598 $30,59~ 199~ 0 519644 0 415716 0.~ 2.43 0 l,OlO,l~g 1,010,1~9 24,4~0 6,763 31,243 1997 0 467680 0 374144 0.00 2.62 0 981,90% 981,904 24,970 6,574 3L543 1998 0 4~091~ 6 336730 0.00 2.~ 0 954,410 954,410 25,469 6,3~ 31,859 1999 0 ~78821 0 203057 0.00 3.06 0 927,687 927,687 25,97~ 6,211 32,189 20~ 0 340939 0 272751 0.00 3.31 0 901,71~ 901,712 26,498 6,037 32,535 2001 0 306845 0 24~4~6 0.00 3.57 0 R76,465 876,465 27,028 5,~8 ~2,896 2~2 0 276161 0 22~29 0.~ 2.~6 0 851,92t ~51,924 27,568 5,704 23,272 2~3 0 ~48545 0 198R36 0.~ 4.16 0 828,071 828,071 28,120 5,544 33,664 2FX, B O 201222 0 l(lOB~ 0.00 4.Rd O 7R2,3~ 7~2,350 29,~6 5,238 34.494 2~6 0 181190 0 144952 0.00 H.O0 0 724,760 724,760 29,~41 4,~52 34,&93 ~. 0 12~5965 0 110~7?~ AVG. IV8. 0 5,543,859 5,543,859 651,744 27,11~ 6~,~0 ~.~ O 549921~ 0 4399~ $0.00 $~.68 0 16,173,719 16,17~,?19 973,~M 1~,~ 1,ORt,917 ~sed On Mid-Ye~ bisco~%t~ 1997 ~9~,3~ 0 0.0 0.0 950,3~ 1,584,209 950,360 8 6,~50,8~ ~ 9~6,459 1998 $922,552 0 0.0 0.0 9~,55~ 2,5~,760 922,552 10 5,9~,$19 55 1999 $~95,~9R 0 0.0 0.0 895,49~ 3,402,258 895,498 12 5,219,964 2~0 $869,178 0.0 0.0 R~9,17R 4,271,~36 ~69,17~ 15 4,~59,332 f~ 564,~ 2~1 $~43,5&9 0.0 0.0 R~3,599 5,115,005 ~3,~69 1i 3,~9~,134 70 4~,~7~ 2~ $818,652 0.0 0.0 R1~,652 5,9~,~57 81~,~52 20 ~,~0,~ 75 ~71,101 ~004 ~7~0,~15 0.0 0.0 770,~15 7,49~,~0 770,~15 ~0 2,111,898 2005 $747,856 0.0 0.0 747,8~ 8,246,736 7~7,~6 35 1,?~,622 ~ 156,908 2~6 $690,~ 0.0 0.0 690,066 8,916,~0~ 690,066 BE~ T~ S-~ 10,236,803 1,300,0~ 0.0 0.0 8,936,803 8,936,803 10,236,803 M~ IN 1~% Y~ ..... 12 ~. 4,854,999 0 0.0 0.0 4,854,999 4,8~4,999 4,854,999 E~ LIFE Y~R~TER NET ~T~R .....$/~R $2.95 ~T O~L UR~V/Z~ .... B~ 0 ~ D. TR R~ - ~4-~ NET ~E~/~E --- $/~E $31.35 ULT ~ ~V/iC~ .... ~ I7,1~5 Pl~ ........... N~ I~E/~E --- $/~R $34.30 ULT OIL RR~V/k~-FT-- ~ 0 ~ P~ ~ ~T PROD ~TR OIL ~ ~TE --- BBL/D~Y 0.0 ULT G~ ~V/A~-~-- ~F 39 ~/8 OIL ~S ....... ~L 0 G~S E~ ~TE --- ~/DAY 74.5 ~ITXL W.I. - ........... % 100.0~0 ~/8 ~ ~ ....... ~CF INIT P~D ~TE-- RCF/D~Y 1500 FIN~ N.t. - ............. % 100.000~ NET OIL ~ ....... ~ 0 DECLIRE ~TR ......... { 10.0 ~ITIL R~UE INT. - .... % 80.00000 ~ G~ R~ ........ ~CF 4,299,272 EX~N~T - ~ .......... 0.0 FINAL REV~UE ~T. - ..... % 80.00000 UL~ 05 RE~V ...... P~D. ~SK FAC~R .... % 1~.00 T~ i RQUIP ~SK Fi~OR- % I~.00 ULT G~ ~V ..... MCF -- RESERVE & ECOI{OHIC REPORT -- PREPARED BY ........ WDS COMB NAME CATEGORY - County Tax WELL &/OR LEASE .... EVAL. DATE 20-D9c-94 STATE .... TX FIELD OR RESE.RVOIR - Bk!NETT S~LE EFFECTIVE DiTE JIN-95 OPERtTOR - mS ............................................................. NET OPERATING REVENUE ........... RET OPERt-TIRG EXPOSES .... --- G~055 PROD.- .... NET PROD --- PRICE PRICE OIL 0~3 T{Y~ZL DIE &IDiR SEV & ADV TOILS EX~NENTI~ DECLINE 1995 0 547501 O 428000 $0.00 ~Z25 ~0 $9R5,501 $985,501 $24,0~ $~,5~ 1996 0 519644 0 ~15716 0.00 2.43 0 1,OlO,1R9 1,010,189 24,~R0 ~,652 29,132 1997 0 4676~0 0 374144 0.00 2.62 0 981,904 9Ri,90~ 2~,970 4,521 199R 0 420912 0 93~730 O.OO ~.~ 0 954,410 954,410 25,469 4,39~ 2000 O 340939 0 272751 0.00 3.31 0 901 $1~ 901,71~ 26,498 4,152 30,dSO 2001 0 306~d5 0 24547~ 0.00 3.U O 876 4E5 876,445 27,028 4,036 )1,064 ~02 0 2%1~1 0 ~20929 0.00 3.86 0 ~51 924 g51,~24 29,~4R 3,923 31, ~3 0 248545 0 198836 0.~ 4.16 0 82~.071 82a,071 23,120 3,~13 31,933 2004 0 223691 0 178953 0.00 4.50 0 804 886 804,8~d 28,6~3 3,706 2~5 0 201322 0 I~i05E 0.~ 4.~6 0 7~2 350 -'7~2,350 29,256 3,d03 2~6 0 1811~ O 144952 0.00 5.~ 0 724.7~ 724,%0 29,841 3,33T 33, S-~ 0 4113251 0 3~01 ~. ~. 0 ~0,~29.8~0 X0,~29,8~0 321,~ 48,948 370,839 R~. 0 1385965 0 1108~2 tVG. AVG. 0 5,543,859 5,~43,~59 ~51,744 25,~28 ~77,272 T~AL 0 5499216 0 4399373 $0.~ $3.6E 0 16,173,~19 ~4,173,719 973,434 74,4~ 1,04~ill ~O~ P~. C~, ~R C~H F~ ........ P~ ~H P~FILE ..... ~sed On Mid-Y~r I995 $956,963 $1,3~,000 0.0 0.0 ($243,027) ($343,027) $956,9d3 2 11,322,082 40 ~1,4)0,~10 1}96 $981,057 O 0.0 0.0 981,0E7 638,020 9~1,057 5 8,675,3{6 45 1997 $952,412 0 0.0 0.0 952,412 1,5~,43~ 952,4~2 ~ 6,~,757 BO 991,~99 1998 $924,547 0 O.O 0.0 924,547 2,514,979 924,547 10 5,966,36~ 55 1~9 ~97,437 0 0.0 0.0 g97,43~ ),412,414 ~97,437 12 ~,234,18~ 60 687,76I 2~ $g7~,~2 0.0 0~0 ~71,~2 4,~83,498 871,062 ~ 4,~6g,~41 4~ 2~1 $~45,401 0.0 0.0 R45,401 5,128,g79 ~45,401 1~ 3,~02,978 70 2002 $820,433 0.0 0.0 ~20,433 5,949,~13 ~0,493 20 3,340,Ii~ ~5 2003 $796,138 0~0 0.0 7~,l~R 6,745,451 796,13g 25 ~,~32,255 80 294,823 2~4 $77~,497 0.0 0~0 772,497 ~,517,94g 772,497 . )0 2,119,28) ~5 223,739 2005 $749,492 0.0 0.0 749,492 ~,267,440 749,4~2 35 1,732,167 90 160,~3 ~6 $691,581 0.0 0.0 691,~1 8,959,021 691,581 BEFORE ~ SU~Y S-T~T 10,259,021 1,300,~ 0.0 0.0 8,959,021 8,959,021 10,259,021 ~ ~ ls~ ~ .... ~, 4,866,~7 0 0.0 0.0 4,~66,587 4,866,587 4,866,587 R~ ~FR Y~ATER 30 ~ 15,125,608 1,300,000 0.0 0.0 13,825,608 13,825,608 15,125,608 ~V ~ SEL~ ~E- 10.0% N~ ~T~E ..... $/~Z $2.95 ULT OIL ~V/ACRE .... ~L 0 ~ ~TE R~ - ~id-Yr ~X ~/~E --- $/~E $31.43 ULT G~ RZ~V/ACRE ---- MCF 17,t85 PAYOUT ............ Y~ 1.35 NET IN~E --- $/~E $34.38 UL~ OIL ~V/A~E-FT-- ~ 0 $ PER ~ET INI~ P~D ~ $1,083 OIL ~ ~TE --- BBS/DAY 0.0 ULT G~ ~V/A~E-~-- ~F 39 ~/8 OIL ~S ...... BBS 0 G~ ~ ~TE --- MCF/D~Y 74.5 ~T~ W.I. - ............ % lW.O0000 ~/8 G~ R~ ........ NCF 5,499,216 ~IT P~D ~TE-- ~F/DAY 15~ FINAL W.I. - ............. % 100.00000 NET OIL RES ...... BBS D~LINE ~TE .- { 10.0 HITA5 ~ l~. - .... % 80.00~ ~ G~ RES ....... ~P 4,399,373 E~T - N ........ 0.0 FINAL ~E ~T. - ..... % 80.~0~ ~T OIL RE~V ..... BBS 0 P~D. ~ FAC~R .... % 100.00 T~G ~ ~U~ RI~ FIC~b % 100.00 ULT G~ RE~V ----- ffCF 5,499,216 ~D ~ FAiR -- % 100.~ ~ RISK FA~ ........ % 100.00