Oil Well-Odema

• Geologists website explaining how to get oil well drilled / what to look for
• synopsis of report
• full scan of report

Standard Oil Lease holder / Invester Agreement

Standard deal is called "1/3 for 1/4" ie by paying for 1/3rd investor gets 1/4 of production ; 'we' get the rest.

In this case drilling and completion cost is about 1.3M$ ; we have 80% NRI (net revenue interest ) leases , meaning that land owner gets 20% (12.5% is Gov imposed minimum but often they ask for extra and we also have some baggage with some people); the 80% is split 60/20 between investors and ourselves.

Before we drill anything investor will get a 'title opinion' - legal statement re legality of our leases. Investor gets paid directly by the refinery, not by 'us'.

If we drill a dry hole some of 1.3M will come back because its reserved for completion. Rig wait time hovers around 5 months. Drilling will be supervised by Trio Operating Co. (they have a nice website), I forget the name of the driller but they are 2nd or 3rd biggest in US.

State limits production to 160 barrels per day to preserve the long term production potential.

Oklahoma state tax is around 7% i think.

Math Digest

• Daily pump = 160*145=23,600 USD
• After State Tax = 21,948
• After LandOwner = 17558
• After Invester = 3511

5 ways == ~ 700 USD per day.