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cleverrox

04/22/14 3:30 PM

#291 RE: ZachBuffett #290

I'm going to reverse engineer the financial statements here to say that at least $5,150,000 of revenue was attributed to MBES unit based on the skim oil. But there were $3,364,341 of royalties paid in 2013 - so I'm wondering what the other $2.3M of royalties were for.

"The Company also acquired the lease of 45 acres in the Eagle Ford shale area on which the disposal well and related
facilities are located, including the right to drill additional wells on the property, for a lease fee of $3,000 per month,
plus a royalty of $0.08 for every barrel of disposed fluid, and a 20% royalty of all skim oil sold. The lease expires
on June 30, 2027. During the years ended December 31, 2013 and 2012, the Company incurred royalty expense of
$1,032,233 and $440,562, respectively."