would be nice if xun could get this oil well properties in texas, i concerned just how that they could come up with the financing.Xun Energy, Inc. has entered into Letters of Intent for the acquisition of oil and gas leases in Texas, named the Falls Project.
In addition to the acquisition of the properties, the Company plans to develop 23 new oil wells and work overs on 6 existing wells.
NOTE: This is not an asset of Xun Energy, Inc. at this time.
The pictures below were taken during our inspection
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In addition to the acquisition of the properties, the Company plans to develop 23 new oil wells and work overs on 6 existing wells.
The Falls Project is currently producing 45 to 55 Barrels of Oil Per Day (BOPD) with an average netback of 60%, based on $95 oil, currently generating gross revenue of $130,000 per month. The completion of the 23 well drilling program and a workover program on 6 shut in oil wells projects the daily production to peak at a settled in rate of 130 to 140 BOPD in 2015, an increase of 300% over current BOPD, resulting in additional gross revenue of $269,000 per month on a decline curve of 8.1% per year. The 23 new oil wells will be drilled and completed over 14 months. The current lease operators, with combined 22 years of experience, will continue to operate and develop the oil and gas leases for the Company.
