Add this to your DD;
There are three locations all built, ready to drill once the deal is signed. The first will be Bull Run.
Bull Run needs production facility built, but they feel it has a lot of potential and a success will increase proved reserves.
Revenues covered operating expenses and came very close to covering all expenses during the last couple months.
Dyer Creek is producing about 20-25/day and Ball is about 10. Total net to us is about 12/day.
Normal price for their oil is about $10 less than WTI. They have been getting much closer than that, around 5-6 bucks under.
They have opened an old well to use for waste water which allows them to increase production a bit on the existing wells. Not a lot mind you, but every barrel helps.
They were looking to close the deal mid-May. It's possible it is all done and we will not find out until the drilling is done. Like it or not that's usually the way they do things. However, they have been working on obtaining financing since last fall, so we won't know until we know. Didn't Yogi Berra say that?
Once financing is obtained, plan is to drill 10-11 wells one right after the other. This will allow them to get working on the seismic study of the other leases this fall without borrowing more.
Good luck.
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