Interesting note from 10Q2:
"Since the completion of the Mitchell wells in the second and third quarters, the total amount of oil sold as of September 2013 sits at 3,895.25 barrels and has net a gross revenue total of $380,484.00. Final post-NRI splits remain unaudited, and will be disclosed in the third quarter financials. The Mitchell lease is still producing approximately 30-50 barrels of oil per day (BOPD)."
The math works out to be $97.68/barrel of oil during the 2nd quarter. TECO-IR can you discuss what TECO is netting per Mitchell barrel during the 2nd quarter and into the future? There is a rumored 28% NRI and I say rumored because the above statement "Final post NRI splits remain unaudited". At 28% X $97.68 = $27.35/NRI per barrel or $106535.08 total NRI??? I'm assuming the math isn't this simple.
"The Company received a $400,000 loan through a private investor. The Company has arranged a long term repayment schedule including a 5% overriding royalty on the Mitchell #3 and #4. The details of this loan are deferred to the third quarter financials. "
TECO-IR is the 5% included the 28%? Was the $400K specifically for drilling Mitchell #3 and #4 and if so what amount went to TNC? I thought TNC was to be paid for their services through a percentage of the well oil profits and hence the low 28% NRI.
"Since the completion of the Mitchell wells in the second and third quarters, the total amount of oil sold as of September 2013 sits at 3,895.25 barrels and has net a gross revenue total of $380,484.00. Final post-NRI splits remain unaudited, and will be disclosed in the third quarter financials. The Mitchell lease is still producing approximately 30-50 barrels of oil per day (BOPD)."
The math works out to be $97.68/barrel of oil during the 2nd quarter. TECO-IR can you discuss what TECO is netting per Mitchell barrel during the 2nd quarter and into the future? There is a rumored 28% NRI and I say rumored because the above statement "Final post NRI splits remain unaudited". At 28% X $97.68 = $27.35/NRI per barrel or $106535.08 total NRI??? I'm assuming the math isn't this simple.
"The Company received a $400,000 loan through a private investor. The Company has arranged a long term repayment schedule including a 5% overriding royalty on the Mitchell #3 and #4. The details of this loan are deferred to the third quarter financials. "
TECO-IR is the 5% included the 28%? Was the $400K specifically for drilling Mitchell #3 and #4 and if so what amount went to TNC? I thought TNC was to be paid for their services through a percentage of the well oil profits and hence the low 28% NRI.