Bighorn Basin Oil and Gas Exploration and Development

Year

(BPD) barrel per day

300

300

300

300

300

Market Price Sweet

75

90

95

100

100

Market Price Sour

60

60

60

60

60

300

300

300

300

300

$6,750,000.00

$8,100,000.00

$8,550,000.00

$9,000,000.00

$9,000,000.00

Number of Days per year

Total
Land Owner Royalty Interest
Total

20%

20%

20%

20%

20%

$5,400,000.00

$6,480,000.00

$6,840,000.00

$7,200,000.00

$7,200,000.00

Operation Cost
Total
AFE Drilling Cost

0.3

0.3

0.3

0.3

0.3

$3,780,000.00

$4,536,000.00

$4,788,000.00

$5,040,000.00

$5,040,000.00

950000

1045000

1149500

1264450

1390895

$2,850,000.00

$3,135,000.00

$3,448,500.00

$3,793,350.00

$4,172,685.00

$930,000.00

$1,401,000.00

$1,339,500.00

$1,246,650.00

$867,315.00

AFE Completion Cost (included above)

Success Ratio Burden

Number of succesful wells

New Wells Annual Revenue

$930,000.00

$1,401,000.00

$1,339,500.00

$1,246,650.00

$867,315.00

100000

100000

100000

100000

$1,301,000.00

$1,239,500.00

$1,146,650.00

$767,315.00

$2,138,000.00

$3,163,700.00

$3,993,980.00

$4,361,897.00

$430,000.00

$3,869,000.00

$7,032,700.00

$11,026,680.00

$15,388,577.00

$10,000,000.00

$15,000,000.00

$21,000,000.00

$45,000,000.00

$100,000,000.00

Science Effort
Total Science
Lease

500000

Total

$430,000.00

Existing Production
Grand Total
Less Taxes
Field Value

Notes
Oil Prices
Succes Ratio, # of well drilled to get one
productive one

New Wells, succesfull wells added

Land Owner Royalty, Interest Pays for
lessee interest, royalties and taxes

Year 1

Year 2

Year 3

Year 4

year 5

75

90

95

100

100

3
1

3
1

3
1

3
1

3
1

0.2

0.2

0.2

0.2

0.2

0.1

0.1

0.1

0.1

0.3

0.33

0.36

0.37

0.38

0.9

0.9

0.9

0.9

Drilling Cost, percent of increase added to

total from details on sheet 2 per well

Operating Cost, Well maintaince, day to day,

personnel and administration cost

New Science, level a cost of 100000. This

includes radio metrics, seismic

Declining production, Each well is set a

10% efficiency loss per year

Bill Allan and John Roden

KOCH oil co Just took a position to the north