Start Scientific, Inc.’s (STSC) Agreement Struct
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Posted On: 03/09/2015 5:05:58 PM
Start Scientific, Inc.’s (STSC) Agreement Structure with Durban Energy Creates Enthusiasm at Fayette Field
Start Scientific bolted out of the 2015 starting gate by signing a Farmout Agreement with Jackson Mississippi’s Durban Energy, Inc. in mid-January. While STSC has until July 10, 2015 to begin drilling operations, the company will receive 100% of the net revenue until payout of all costs, at which time the company will assign a 25% working interest to Durban and its partners. The 30% royalty burden on the agreement leases means that before payout the company will have 70% of net revenue and after payout the company will have 52.5% of net revenue. Subsequent to these payouts, Durban will have 17.5% of net revenue. Each well’s payout calculation will be treated separately.
When Humble Oil Company made its discovery in the summer of 1945 with the completion of the No. 1 M. R. Smith, the region’s area of influence became Fayette Field located in Jefferson County, Mississippi, northwest of the town of Fayette and 21 miles northeast of Natchez. Completed in the Lower Tuscaloosa Massive sand, this well tested 229 BOPD of 40-degree gravity oil with 2,000 pounds of flowing tubing pressure. The well produced a total of 630,288 BO and 2.3 BCF of gas. The Massive sand is fine grained, ashy and micaceous. Permeability in this sand is as much as 460 millidarcies and porosity averages 28%. The Fayette structure is a simple anticline and covers about 2,500 acres.
Commenting from a foundation of over 50 years of experience in oil and gas exploration, company Chief Executive Officer, Mr. Norris Harris commented, “The Fayette Field is one of several projects in Mississippi which we can acquire with low front-end costs because of our relationships there. With lower oil prices we must find opportunities to attract financial partners who are escaping low-return shale drilling programs which are not economical at less than $60 oil.”
For more information on the company, visit www.startscientificoil.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
Start Scientific bolted out of the 2015 starting gate by signing a Farmout Agreement with Jackson Mississippi’s Durban Energy, Inc. in mid-January. While STSC has until July 10, 2015 to begin drilling operations, the company will receive 100% of the net revenue until payout of all costs, at which time the company will assign a 25% working interest to Durban and its partners. The 30% royalty burden on the agreement leases means that before payout the company will have 70% of net revenue and after payout the company will have 52.5% of net revenue. Subsequent to these payouts, Durban will have 17.5% of net revenue. Each well’s payout calculation will be treated separately.
When Humble Oil Company made its discovery in the summer of 1945 with the completion of the No. 1 M. R. Smith, the region’s area of influence became Fayette Field located in Jefferson County, Mississippi, northwest of the town of Fayette and 21 miles northeast of Natchez. Completed in the Lower Tuscaloosa Massive sand, this well tested 229 BOPD of 40-degree gravity oil with 2,000 pounds of flowing tubing pressure. The well produced a total of 630,288 BO and 2.3 BCF of gas. The Massive sand is fine grained, ashy and micaceous. Permeability in this sand is as much as 460 millidarcies and porosity averages 28%. The Fayette structure is a simple anticline and covers about 2,500 acres.
Commenting from a foundation of over 50 years of experience in oil and gas exploration, company Chief Executive Officer, Mr. Norris Harris commented, “The Fayette Field is one of several projects in Mississippi which we can acquire with low front-end costs because of our relationships there. With lower oil prices we must find opportunities to attract financial partners who are escaping low-return shale drilling programs which are not economical at less than $60 oil.”
For more information on the company, visit www.startscientificoil.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
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