Austin Chalk Wells
Austin Chalk Wells (Working Interest 60%/ Net Revenue Interest 45%)
· Near term workover and exploitation potential on three Austin Chalk horizontal wells and two vertical wells using low-cost techniques proven on Morris #1 well.
· The Company intends to use a coiled tubing rig to clean out; work-over; and, acidize Austin Chalk zone in each of the horizontal laterals with estimated potential production of 60-80 barrels per day per well
· Longer-term potential to re-frac wells targeting zones identified with the Roke Quad Neutron log tool
· None of the wells have been re-entered or stimulated in any way suggesting significant upside potential from low cost stimulation and production enhancement techniques and technologies
· Operating cost per barrel estimated to be US$18-20 per barrel as water from these wells will be transported via truck for disposal