DV

LOW RISK READY-TO-DRILL

Drilling Prospects

All Standard Disclaimers Apply & Seller Rights Retained


LOW RISK READY-TO-DRILL

SOUTH TEXAS DRILLING PROJECT

1-Horizontal Drilling Prospect. 180 Acre

HOCKLEY 3100 FORMATION

LOW RISK SWEET GRAVITY CRUDE

Economical At $25 Oil with 10% IRR

Selling 10-25% NonOperated WI

Expected IP: 300-450 BOPD

OPERATIONS POSSIBLY NEGOTIABLE.

Dry Hole Costs: $900,000;

Est Reserves: 140,000 BO

Dry Hole & Completion: $3.2 MM

DV 2010

LOW RISK SHALLOW HORIZONTAL OIL PROJECT

Energy Advisors Group is marketing a Low Risk–High Potential Shallow Horizontal Drilling Project on behalf of a Houston based independent who is looking for Joint Venture Partners to develop this quick opportunity.

The prospect and terms are defined herein:

SOUTH TEXAS PROSPECT FOR SALE
1-Horizontal Drilling Prospect Ready To Drill 180 Acre Unit.
HOCKLEY 3100 PROJECT @3,000 ft. VTD; 6,000 Aft TMD
LOW RISK OIL. SWEET GRAVITY
Selling 25% NonOperated WI
Expected IP: 300-450 BOPD; Oil Gravity: 36-38 Gravity Sweet
Seeking Capital To Drill & Exploit; Operations Negotiable.
Reserves: 140,000 BO/Well
Dry Hole Costs: $900,000; Completion: $2,250,000; Total D&C Costs: $3,125,000

Prospect is economical at $25.00 Oil with an IRR of %10
Prospect Generator says they would prefer an IRR in the middle 30% Range which requires $35 oil and achieves a 24 month payout.
At $45 Oil, IRR= 67%, Payout= 13 months
At $50 Oil, IRR= 85%, Payout= 10 months
Generator would like to drill when there is a clear trend in improvement of oil price.

25% STAKE---

---Prospect Fee: $40,000 for an undivided 25% WI
---Land Fee: $500.00 net acre x 2,000 net acres; 75% NRI;
---Three (3) Year Primary Term; Plus Two (2) Year Extension “Kicker” = $250,000 for a 25% WI

---Dry Hole Cost: $900,000.00 x 25% WI = $300,000.00* = 25% WI
---Completed Well Cost: $2,250,000.00 x 25% WI = $750,000.00*
*Promote: [1/3rd for a ¼ CARRY] through Completion on the ITW (Initial Test Well of the Prospect), only.

In the event a potential partner or capital provider might only be interested in ten (10%) percent then the costs are calculated as such:

10% STAKE----
Ten Percent (10%) Working Interest:
Project Fee:
$133,333.00 x 10% = $13,333,30

Land Fee:
1,144 net acres x $500 x 10% = $57,200

Drilling Cost (Promoted 1/3rd for a ¼ through Completion)
10% x 1.3333 x $2,250,000 = $300,000

TOTAL CAPITAL INVESTMENT for a (10% WI) = $13,333.30 + $57,200 + $300,000= $370,533.30


Our client is looking for industry participants to participate and would be pleased to present this prospect. For more information, please Contact Ronyld W Wise at 713-594-0812or Sara Davis 713-256-8737

Formal Contact Information--

Mr. Reed Rightmer
Geologist
5120 Woodway Dr Ste 10010
Houston, TX 77056
---Phone: 713-600-0177 Cell: 979-743-1750 and/or Email: [email protected]

OR

Energy Advisors Group
Mr. Ronyld Wise
5120 Woodway Dr Ste 10010
Houston, TX 77056
---Phone: 713-600-0123 Fax: 713-600-0138 and/or Email: [email protected]

Questions Regarding This Asset? Email Reed Rightmer or call EAG at 713-600-0123
Virtual Data Room

SOUTH TEXAS DRILLING PROJECT

1-Horizontal Drilling Prospect. 180 Acre

HOCKLEY 3100 FORMATION

LOW RISK SWEET GRAVITY CRUDE

Economical At $25 Oil with 10% IRR

Selling 10-25% NonOperated WI

Expected IP: 300-450 BOPD

OPERATIONS POSSIBLY NEGOTIABLE.

Dry Hole Costs: $900,000;

Est Reserves: 140,000 BO

Dry Hole & Completion: $3.2 MM

DV 2010

LOW RISK SHALLOW HORIZONTAL OIL PROJECT

Energy Advisors Group is marketing a Low Risk–High Potential Shallow Horizontal Drilling Project on behalf of a Houston based independent who is looking for Joint Venture Partners to develop this quick opportunity.

The prospect and terms are defined herein:

SOUTH TEXAS PROSPECT FOR SALE
1-Horizontal Drilling Prospect Ready To Drill 180 Acre Unit.
HOCKLEY 3100 PROJECT @3,000 ft. VTD; 6,000 Aft TMD
LOW RISK OIL. SWEET GRAVITY
Selling 25% NonOperated WI
Expected IP: 300-450 BOPD; Oil Gravity: 36-38 Gravity Sweet
Seeking Capital To Drill & Exploit; Operations Negotiable.
Reserves: 140,000 BO/Well
Dry Hole Costs: $900,000; Completion: $2,250,000; Total D&C Costs: $3,125,000

Prospect is economical at $25.00 Oil with an IRR of %10
Prospect Generator says they would prefer an IRR in the middle 30% Range which requires $35 oil and achieves a 24 month payout.
At $45 Oil, IRR= 67%, Payout= 13 months
At $50 Oil, IRR= 85%, Payout= 10 months
Generator would like to drill when there is a clear trend in improvement of oil price.

25% STAKE---

---Prospect Fee: $40,000 for an undivided 25% WI
---Land Fee: $500.00 net acre x 2,000 net acres; 75% NRI;
---Three (3) Year Primary Term; Plus Two (2) Year Extension “Kicker” = $250,000 for a 25% WI

---Dry Hole Cost: $900,000.00 x 25% WI = $300,000.00* = 25% WI
---Completed Well Cost: $2,250,000.00 x 25% WI = $750,000.00*
*Promote: [1/3rd for a ¼ CARRY] through Completion on the ITW (Initial Test Well of the Prospect), only.

In the event a potential partner or capital provider might only be interested in ten (10%) percent then the costs are calculated as such:

10% STAKE----
Ten Percent (10%) Working Interest:
Project Fee:
$133,333.00 x 10% = $13,333,30

Land Fee:
1,144 net acres x $500 x 10% = $57,200

Drilling Cost (Promoted 1/3rd for a ¼ through Completion)
10% x 1.3333 x $2,250,000 = $300,000

TOTAL CAPITAL INVESTMENT for a (10% WI) = $13,333.30 + $57,200 + $300,000= $370,533.30


Our client is looking for industry participants to participate and would be pleased to present this prospect. For more information, please Contact Ronyld W Wise at 713-594-0812or Sara Davis 713-256-8737

Formal Contact Information--

Mr. Reed Rightmer
Geologist
5120 Woodway Dr Ste 10010
Houston, TX 77056
---Phone: 713-600-0177 Cell: 979-743-1750 and/or Email: [email protected]

OR

Energy Advisors Group
Mr. Ronyld Wise
5120 Woodway Dr Ste 10010
Houston, TX 77056
---Phone: 713-600-0123 Fax: 713-600-0138 and/or Email: [email protected]

Questions Regarding This Asset? Email Reed Rightmer or call EAG at 713-600-0123