Freestone Resources Inc. (fka FSNR)

[falconer66a]

Dad,

If we use the low-end price of just ten-cents a barrel, I calculate the numbers as follows.

A new well will require about 4 million gallons of frackwater. That’s 95,238 barrels. At a ten-cent price, that’s a total gross income per well of $9523.00.

If the JV can provide this volume to 122 wells, total gross revenues are $1,161,905 for the year.

Yes, since Freestone holds a one-third interest, its gross revenues would be $387,302.

But what if the water goes out the gate at $0.50? That’s five times as much, at $1.9 million to Freestone.

At a dollar a barrel, Freestone gets $3.8 million.

Then, what if the JV is able to install and operate one or two or three more new load out facilities of equivalent operations?

Of course, the 10-Q statement points to future water recycling. The prices or costs to recycle “used” frackwater will certainly be higher than the initial raw water sales (as will be operating costs).

Announced developments in coming weeks and months and quarters will be interesting, won’t they, especially with any new load-outs or recycling services?

–Falconer66a