- Limited Exploration & Production Risk, Pure Development Project. Reservoir already defined by Shell in the 1970s through core analysis. Subsequent owner completed further Engineering and Geology. Reservoir never developed
- Located 2 miles North of Shell’s successfully developed Slocum field using old Inverted 7 Spot steam technology. Optimize development with Canadian unconventional Technology SAGD etc.
- Excellent Geo Political Risk, freehold minerals in East Texas. Significant Oil Price Differential to Canadian Producers $15-$25 per barrel. Strategically located to close Gulf Coast Refineries
- 110 miles southeast of Dallas. Established Infrastructures: paved highways, rail access, sale gas pipeline, good water sources and rights in place with leases
- Attractive Economics based on 1970-80s technologies. Approx. 3.5 year payout, 55% to60% internal rate of returns 5.5 -6 times payback. Canadian unconventional Technology SAGD etc. will significantly increase all Project Economics
- Operator and senior technical personal with vast expertise in Texas and the USA
- Other Opportunities exist for oil pools like Days Chapel. Extensive Databases play books and well control from previous Shell work (data). Senior technical personal with extensive knowledge of Carrizo geology in East Texas applying state of the art technology for data mining
- Exit Strategies Options: (a) Sell to Foreign Asset Income Trust (“FAIT”), (b) Create FAIT. (c)Strategic relationships with management of FAITs. (d) Continue as Public Company developing plays providing Predictability