DD Support Board and Research Team

[jbsliverer]

Continuing on regarding BNPD and their future looking statements of production and profit abilities for actually doing business of pumping oil (to or from the moon or anywhere else). The hype is all about the four wells that BNPD (Texas Oil and Minerals) has got and that’s showing that oil will indeed be pumped to and from the moon, or at least profits will be. (Ok, again being a little sarcastic, but just can’t help myself sometimes with these pinks.)

There was a PR on 6/1/11 stating this:

Texas Oil and Minerals, Inc. (OTCMARKETS: BNPD) announced today that it has entered into a Letter of Intent to purchase a working interest the South East Texas Salt Dome. Under the terms of the agreement and pursuant to future definitive agreements, Texas Oil and Minerals will acquire a 25% working interest in the Bryan Estate which is part of the Damon Mound Field located in Brazoria County, Texas.
The initial production from the first two wells when they were returned to production last year was 12 barrels of oil per day without cleanouts or treatment. We feel with that removing the paraffin buildup and the cleaning out of the sand screens will increase the production from all four wells to between 20-32 barrels per day.
The Bryan Estate property presently contains 4 wells all of which are expected to be worked-over and cleaned out and brought online over the next 1 to 2 months.
Our consulting geologist Hal Basham will be researching and re-working the existing information on this field to determine if there is still a viable location to be drilled on this lease. This might also require us to purchase some existing seismic should it be available.
The drilling of a new well to the depth of 3,200 would give us an opportunity to look at the 4 different pay zones in this field at a cost around $350,000. Initial production would be around 50 barrels of oil per day giving us a payout in approximately four months with a positive cash flow of $18-20,000 per month to Texas Oil and Minerals interest. The Damon Mound is a Salt Dome so the existing field rules allow us to drill on one acre spacing for any new location.
Tom Gouger, CEO of Texas Oil and Minerals, stated, "Our agreement marks our entry into building a sustainable portfolio of oil producing properties. The Brazoria County property is already a highly productive area and has the potential to be further exploited to increase shareholder value in the near future and long-term."
The final contract is in its final days due diligence period and is anticipated to be finalized June 1st or soon thereafter. The negotiated total purchase price for the 25% working interest in the properties requires a US $50,000 down payment to be paid following execution of the definitive agreements.

http://ih.advfn.com/p.php?pid=nmona&article=47909126

In fact, it seems like Tom Gouger was indeed working the wells under his company Tejones Operating Company since taking over operating those wells about 3 years prior. The last production report is for May 2011 (June or July not available yet) and the Bryan Estate lease was his best deal at 101 Barrels for that month. Far cry from the 12 barrels per day from the production of the previous year given unless they only worked it about 8 days for the month one shift per each of those days.




Then the follow up PR on the “LOI” with the finalization of 25% of the “working interest” on 6/13/11. Of course no mention of any connection with BNPD (Texas Oil and Minerals) and Tom Gouger’s company Tejones Operating Corporation.

Texas Oil and Minerals (OTC MARKETS: BNPD), www.texasoilandmineralsinc.com, is very happy to announce today that they have finalized the purchase of a twenty-five percent working interest in the Bryan Estate Leases located in the Damon Mound Field in Brazoria County Texas.
The Damon Mound field is located on a Salt Dome which was discovered in 1915 but not developed until 1925. Since that time there have been hundreds of wells drilled, which produce from a number of different horizons including the Het Limestone, Catahoula, Frio, Vicksburg and the Miocene.
Tom Gouger, CEO of Texas Oil and Minerals, stated, "The dome has produced over 5.6 million barrels from these sand with the average well producing around 60,000 barrels per well. We feel that we have around 11,000 barrels still to be recovered from the existing four wells on the lease from the sands we are presently producing from."
"While field rules for drilling new wells are regulated by the Texas Rail Road Commission and most wells require between 5-20 acres for a drilling location for wells drilled to a depth of 3,200 feet, with this field being a Salt Dome we only need 1 acre for location. This will provide us with the possibility of drilling a new well should our consulting geologist find a viable location or if he finds a good prospect from an old well bore to reenter." Gouger added.

http://ih.advfn.com/p.php?pid=nmona&article=48043387

And on 7/11/11 this PR was released where they are stated to “begin a work over of the four wells” with I guess Tom Gouger’s company that is already there and working it already:

Texas Oil and Minerals, Inc., ("Texas Oil") (OTC Pink: BNPD) announces that it plans to begin a work over of the four wells located in Brazoria County, Texas. On June 13, 2011, Texas Oil entered into an agreement to purchase a 25% working interest in the Bryan Estate Lease which is part of the Damon Mound Field. Texas Oil and Minerals with their team of geologists and engineers are structuring the procedure for the work-over and wash out of the existing wells on this lease. www.texasoilandmineralsinc.com
"We are excited to begin the work over on the Bryant Estate leasehold," said Texas Oil and Mineral's CEO, Tom Gouger. "The work-over rig and wash tank should be on location within the next three weeks to pull each well and make any repairs that are needed to the rods and tubing. We will then use the tubing to wash down to the top of the sand screen and spot chemical that will dissolve the paraffin. This will be repeated on each well and will take about two weeks to complete."
After completion this should bring them to full field production to an average of 20 barrels of sweat crude oil per day.
"Were excited about the increase in production revenues that will show on Texas Oil and Minerals next quarter balance sheet," added Gouger.

http://ih.advfn.com/p.php?pid=nmona&article=48391921

One of my questions is how are they going to get from about 100 barrels a month to 20 barrels a day unless they just don’t work to many days with the process they are discussing. I have family that actually is a welder for a large oil drilling company down in Texas and that company works 7 days a week and a few shifts. Ok, maybe that company is large and BNPD isn’t, but still how many days a month (or hrs) will they be working it.

Another question is for ones who might actually know this business, what kind of realistic production or more importantly PROFIT from this area or wells can be expected. There are many wells in this area just being plugged or not enough production to make it worth the expense.

Just trying to do some DD on the actual production, permits, owners, etc and came upon this doc.

841338}TEJONES OPERATING CORPORATION }039}02625}BRAZORIA }O}03}01090 } 2 } }BRYAN ESTATE }22897001}DAMON MOUND }L}003735}200907}11}2011}A} } } } }02}00}02}04}A} } } } } } } } }
http://www.rrc.state.tx.us/iwar/iwarjuly2011.txt

But a little help also in what each of these particular numbers or data are. I have figured a few of them out like

Operator number (P-4/P-5 report, etc) = 841338
Operating Co. = Tejones Operating Corp
County = Brazoria
District = 03
Lease/Gas or RRC Identifier = 01090
Lease Name = Bryan Estate
Field # = 22897001
Field Name = Damon Mound


Also where or what, if anyone knows, could be suggested realistic DD links or operation reports, etc to actually confirm some of the quite large projections and forward looking statements and check up on Gougers, BNPD, or Texas Oil and Minerals (or Tejones Operating Company) statements to distinguish hype from reality?