Prospect Generation
Focused on the Mid-Continent:
New plays, prospects, in-fills, and step-outs
Vertical and horizontal plays
Behind-pipe and bypassed pay evaluation
Organic mudstones, tight sands, hybrid, CBM, and conventional traps
Structural and stratigraphic
Current Investment Opportunities:
Lansing 'A' Structure (subsea-tvd; 10-ft CI) with 320-acre lease tract highlighted.
CENTRAL KANSAS UPLIFT
STACKED CONVENTIONAL OIL
100% FUNDED
LOW-RISK, IN-FIELD & STEP-OUT VERTICAL OIL PROSPECTS
1 initial vertical well; 3 - 4 immediate offsets @ 40-acre spacing
within existing producing fields and fairways
Pawnee Limestone + >10 Lansing-Kansas City carbonate reservoirs;
Structural-Stratigraphic Traps; 4100 ft TD;
Cherokee Sand and Arbuckle Upside
40-60 MBO EUR/well; >400% ROI; payout ~13 months @$70/bo
UPSIDE 80-150 MBO/well; >1000% Net ROI
90% chance of commercial success (~20 MBO)
Licensed operator ready to permit / operate; intend to spud March 2024
Full 320-acre development success =
7 wells, 280 MBO to 420 MBO; + upside;
+ additional field prospects and farm-in opportunities
+ additional prospects and plays in regional trends
DEAL TERMS & TRADE
90% already funded; 1%, 2%, 5%, or 10% WI Investments Available
Initial Prospect: 320 acres leased in s25-T11S-R23W, Trego County, KS
Delivers 82.5% net NR, 1/8 royalty, 3 year+2; NO CARRY
LAND: $25M; G&E: $15M; Total risked cost = $315M (1%=$3,150)
Completion Estimate = $276M (1$ = $2,760)
Total Producing Well Cost = $591M (1%=$5,910)
Net ROI of 3.5x after royalties, LOE, and taxes;
subsequent offsets: $502M CWC = 5.5x Net ROI
Net Reservoir (5-ft CI) with 21 section Emerald City prospect highlighted at 4 wells per section.
EMERALD CITY PROSPECT: WESTERN KANSAS
HORIZONTAL OIL
READY TO LEASE
• Northern Hugoton Embayment, Western Kansas
• Dolomitic stratigraphic trap with full oil column at 4700’ TVD
• Full oil column delineated by offset vertical production
• Horizontal, cased-hole, perf & acid frac; 4500-ft lateral; 9350 ft md TD
• 21.5 total prospective sections; 160-acre spacing; 4 wells per section
• 86 wells total = 17 to 25 MILLION BARRELS RECOVERABLE OIL
• Large-scale play potential: >8 additional prospect areas over 100,000 acres
• 1st Well+Pilot: Drill: $1.6MM; Complete/Produce: $1.6MM; Total CWC: $3.5MM
• IRR: 51%; NPV10: 2.5MM; ROI: 2.70; Payout: 20 months @$75/bo
• Target Development costs at $2.75MM per well or less:
• IRR: 98%; NPV10: 3.3MM; ROI: 3.44; Payout: 12 months @$75/bo
• 147-245 MBO EUR/well; 4:1 horz-vert type curve =196 MBO; 6:1 = 294 MBO
• 1 initial proof-of-concept lateral & vertical pilot; +3 delineation laterals/pilots
• Max out-of-pocket: $26MM; self-funding @ 24 months; cashflow positive @ 34 months; after HBP 42 wells, 36-mo cash flow = $78MM
• Initial leasing of 3200 acres: 10 tracts x 320 acres each @ $25-50/acre: $80M-160M; 1/8 to 3/16 royalty, delivers net NRI 79.25 to 80%
• Total leasing of 13,760 acres: $350-$700M
• Secondary uphole potential median well EUR’s: 38MBO
• Deal Terms for an investor-operator: $20k prospect fee upon agreement; $5k/spud first 10 wells; ORRIs and CWI; +future WI options
