CHAG ~ 10KSB
Twelve Months Ended December 31, 2007 Compared to Twelve Months Ended December 31, 2006
We had no production operations in calendar year 2006. Our oil production operations began April 16th, 2007 with an effective date of April 1st, 2007. During the period ending December 31, 2007 we produced and sold 23,120 barrels of oil and produced and sold 55,831 mcf gas, generating $2,075,956 revenues after royalties, with a one month lag in receipt of revenues for the prior months sales. Start up expenditures, included debt origination expenditures, and the required prepaid hedge were $251,456. We had 84 wells actually producing oil and gas on April 16, 2007 and restored an additional 119 wells by December 31, 2007. The terms of our loan agreement required us to hedge initial oil production; we purchased two 1000 barrel hedge contracts covering the first 24 months production at a cost of $88,900. We also experienced non-recurring expenses related to start-up.
"It is foolish and wrong to mourn the men who died. Rather we should thank God that such men lived." -General George S. Patton. Jr.
"PATRIOTIC DISSENT IS A LUXURY OF THOSE PROTECTED BY BETTER MEN THAN THEY."
