Multi-Prospect Exploration Program Bottineau and Renville Counties
Overview
Ward Williston Oil Company is soliciting participants in a four prospect drilling package. Prospects are located in Renville and Bottineau Counties, North Dakota near existing fields and with established pay zones. Two prospects are defined by 3-D seismic, one by 2-D seismic and one by previous drilling. Primary recoverable reserves could exceed 6.2 MMBO.
Oil production has been established in various horizons of the Mississippian Mission Canyon and Charles formations (Madison Group) in the Eastern Williston Basin of North Dakota since the early 1950’s. Potential pay intervals in the four prospects include porous carbonates of the Midale, Mohall, Glenburn, Wayne and sandstones of the first and second Kisbey. All of these intervals currently produce in the two counties.
Investment Highlights
• Up to 10,000 gross acres within the defined area of mutual interest
• Access to numerous well bores
• All prospects lie between, in or near production
• Offset wells provide oil shows and reservoir information
• 2-D seismic data was purchased and reprocessed in 2006
• 3-D seismic survey was recorded over two of the prospects in 2007
• If initial wells are successful, potential for up to an additional 10 – 12 wells
Reserves
Prospect A
OOPI
Primary Recoverable
Total Est. Value*
Midale
4.0 MMBO
0.9 MMBO
$39.6MM
2nd Kisbey
0.5 MMBO
0.2 MMBO
8.8MM
Wayne
3.7 MMBO
0.6 MMBO
26.4MM
Total
8.2 MMBO
1.7 MMBO
$74.8MM
Prospect B
Midale
2.1 MMBO
0.5 MMBO
$20.2MM
2nd Kisbey
0.2 MMBO
0.1 MMBO
3.1MM
Wayne
3.8 MMBO
0.6 MMBO
25.0MM
Total
6.1 MMBO
1.2 MMBO
$48.3MM
Prospect C
Mohall
11.1 MMBO
2.2 MMBO
$97.7
Prospect D
Glenburn
4.5 MMBO
1.1 MMBO
$49.0MM
Package Total
29.9 MMBO
6.2 MMBO
$269.8MM
*Estimated value calculated using $55.00/BO and 80% NRI
Deal Structure
Leases and Title
$575,000
Geology
114,000
Engineering
40,000
Seismic
435,000
Drilling
3,156,158
(Includes 1/3 for 1/4 promote)
Completion
1,413,000
Total
$5,759,158
Cost / Percent
$57,592
Estimate Value / Percent
$2.7MM
NRI
80.00%
Based on the above numbers, an investment of approximately $43,462 would earn a participant a promoted 1% working interest in each of the initial test wells in the four drilling prospects. If successful, an additional $14,130 would be required for completion. Any subsequent wells in the prospects would be drilled on an un-promoted basis. Ward Williston will act as operator of record for drilling, completion and production.
