Posted On: 08/27/2012 7:09:02 AM
Post# of 18416
$UYMG worth a watch this week and has received some lease updates on 8/8 to add to their fleet of wells looking to come back online
Quote:
. The primary focus of the due diligence has been on the performance of various wells, as well as the requirements to bring the wells back online. During our initial viewing of these wells, 3 wells flowed freely. We believe that less than 9% of the wells in the United States are considered free flowing wells. Based on field information and our initial testing we hope to achieve 80 BOPD with a successful Nitrogen or CO2 Huff and Puff or Flood. While the price of oil varies daily we used $86.08 per barrel (although most 5 year forecast is $101.07 Per Barrel); upon successful implementation and good results; 80 BOPD would add approximately $167,477 per month or $2,009,724 annually. The lease requires the following: successful well treatment, production flow line, a separator, and production equipment.
Quote:
. The primary focus of the due diligence has been on the performance of various wells, as well as the requirements to bring the wells back online. During our initial viewing of these wells, 3 wells flowed freely. We believe that less than 9% of the wells in the United States are considered free flowing wells. Based on field information and our initial testing we hope to achieve 80 BOPD with a successful Nitrogen or CO2 Huff and Puff or Flood. While the price of oil varies daily we used $86.08 per barrel (although most 5 year forecast is $101.07 Per Barrel); upon successful implementation and good results; 80 BOPD would add approximately $167,477 per month or $2,009,724 annually. The lease requires the following: successful well treatment, production flow line, a separator, and production equipment.
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