To: steve bargo <sbargo@excellerecg.com>, Barrett brown <barriticus@gmail.com>
Steve, Barrett
We should have a one page summary detailing the development of the field, and Steve you might want to talk to Session and see if we need to
include a term sheet at this juncture, or wait until we have an indication of interest to a particular project.
South Tigre Lagoon
PHASE 1 Driil the two locations that have been engineered by La Rouche Petroleum Consultants. Starting with Location #1, drill to a depth of 16,500 feet
testing thru Planulina 11. AFE at $10,451,000. Drill location#2 through proven reserves of SD 9, and continue drilling to a depth of 16,500 feet to test zones
thru Planulina 11. Cost of $8,456,000.
Phase I Total Costs: $ 18,907,000 or if you add the 20% load it would be $22,688,400
Phase 2 Drilling and complete 10 additional wells to a depth of 16,500 feet to capture the of most of the 3P reserves of estimated 500 BCF
and 18,000,000 BC.
Phase 2 Total Costs: $84, 560,000, or if you add the 20% loan it would be $ 101,472,000
Deal Terms
Objective : Siph Davisi and Planulina Sands
Acreage : 549 ACRES
Prospect Cost : $750,000
Promote : 15% carry thru the tanks on first two wells, heads up thereafter
Estimated Reserves : Proved Reserves 5.6 BCF & 112,000 BC
Probable & Possible ( first two locations) 59.4 BCF & 4,434,000 BC