Louisina-Texas - Oil Venture
Gold Mines and Coal Deposits



Montana USA

Oil Venture
Louisiana-Texas, USA





Gold Mines, Coal Deposits, Iron Deposits, Uranium Deposits for Sale and JV from Sky Lodge Investments, LLC.
Dorothea Lowe, CEO
I speak German and English with an accent…

Dorothea Lowe, CEO

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Experienced oil and gas field operator in Louisiana needs an Industry Partner.


Project One

is made up of three wells producing a total of 36 BOPD with two additional wells to be re-entered and one new offset well drilled with an expectation of increase production on this project to 176 BOPD. The wells are in Louisiana. Total funding needed is $4.5M

Project One started in the late 50s and has produced 3 million barrels of oil and 15 billion cubic feet of gas to date from ten oil and gas sands from 5,000' to 8,000'. The last operator in the field abandoned the last wells prematurely due to low oil prices and high water production. Typically oil wells are abandoned when the water percentage gets in the high 90s. Some of these wells were abandoned at 35% water cut and some at 75%. No saltwater disposal well existed and the water had to be hauled away by truck, a very costly undertaking.

Project One currently has three wells producing about 36 BOPD and enough gas to operate the pumps. There are three reentries to do in the 6800' sand and 7000' sand. The owners abandoned their attempt to reenter the #1 Well due to an unexpected obstruction in the hole. The well was attempting to flow, so we tried to complete it as is but the zone was non-commercial. We will go back and finish this reentry which will cost about $250,000; it could be less if the obstruction comes out easily. We did not attempt to get past it. The two other reentries should cost about the same depending on what we find in the hole. The state well files did not show the obstruction in the first well and is incomplete for the other two wells. The production increase should be between 60 and 100 BOPD if all are successful.

After studying the data, we came up with a new drill site north of the first well. This should encounter the 6800' and 7000' sands in a good position. There were also several gas sands above the 6800' sand in the surrounding wells that will be found in a good position as well. The price of gas is up to $4/MCF which makes gas production more attractive. The new well should cost about $750,000 and come in at about 100 BOPD and decline after a few months to 60 BOPD based on our experience in the field. The total increase in production should be between 120 and 200 BOPD after all four wells are on. All these wells will need to be put on pump when they are oil productive. The gas zones will flow.

Year 1

We are looking to purchase the property at a price of $2.8M. The estimate to rework the wells two wells and drilling the third is $1.7M Dollars. This comes to a total of $4.5M


Project Proforma

Month 1
BOPM
2
BOPM
3
BOPM
4
BOPM
5-12
BOPM
YTD
BOPM
3 Existing Wells 1080 1080 1080 1080 1080 26400
3 New Re-entry WElls 2400 2400 2400 2400 26400
1 New Well Drilled 3000 3000 1800 20400
Total BOPM 1080 3480 6480 6480 5280 59760
Price per BO (Average) $ 100 $ 100 $ 100 $ 100 $ 100
Gross Revenue $ 108,000 $ 348,000 $ 648,000 $ 648,000 $ 528,000 $ 5,976,000
LA Severance Tax (12%) ($12,946) ($41,760) ($77,760) ($77,760) ($63,360) ($717,120)
Mineral Rights Holders Royalties (25%) ($27,000) ($87,000) ($162,000) ($162,000) ($132,000) ($1,494,000)
Net Revenues $68,040 $219,240 $408,240 $408,240 $332,640 $3,764,880
Operating Expenses $31,234 $59,116 $78,635 $78,635 $78,635 $876,700
Profit/Loss $36,806 $160,124 $329,605 $329,605 $254,005 $2,888,180



Terms of Financing

The company is either looking for a Joint Venture partner to fund the $4.5M for a 50% Working Interest ownership or a mezzanine financing to fund this project.


Exit Strategy



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This is not an offer to buy or sell securities. We are not a United States Securities Dealer or CEO or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions

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Copyright ©2000 Dorothea Lowe
       All Rights Reserved. This document may not be copied in part or full without express written permission from the publisher. By providing links to other sites from goldandcoal.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to goldandcoal.com The data contained herein were obtained from sources deemed reliable, but is not guaranteed by me. Prospective purchasers are advised to examine the facts to their own satisfaction. These offerings are subject to change of price and terms, lease, prior sale or withdrawal from the market, without notice.