PARTICIPANT OVERVIEW – EAST LOST HILLS PROSPECT November 1998
The Play:
Located in the San Joaquin basin of California, this region is one of the most prolific producing onshore areas in North America. The estimated ultimate reserve recovery exceeds 15 billion barrels of oil equivalent (BOE). There are eight fields that will produce more than 300 MILLION BOE each and three larger than a BILLION BOE.
The East Lost Hills prospect is an approximate 20,000 acre property located near Bakersfield. Reserve potential, based on the pre-drill structural interpretation, could be as large as 1.2 billion BOE. This estimate is not proven, but based on seismic and well control – This is a high risk, high return prospect. The exploratory well began drilling in May.
The Players:
Involved in the play are Berkley Petroleum, Paramount Resources, Westminster Resources, Stanford Oil & Gas, Hilton Petroleum, Richland Petroleum, and various private entities including Armstrong Oil of Denver (generators the play). Following is a brief discussion of the involved companies, their corporate information and structures. The following assumptions are based on a successful drill, discovering 800 million BOE recoverable, then subtracting 25% for royalties and other expenses. Net asset values were calculated valuing reserves at US$5.00 BOE “in the ground” less long term debt.
BERKLEY PETROLEUM BKP – TSE
Shares Issued: 65,910,889 % Interest: 15%
Current Reserves: 93.5 Million BOE Net Reserve Impact: 90 Million BOE
% Reserve Increase: 96% Current Share Price: $11.50 CDN
Net Asset Value:$9.27 Increase in Asset/Share:$10.24
Potential Net Asset Value: $19.54
PARAMOUNT RESOURCES POU – TSE
Shares Issued: 56,953,600 % Interest: 7.5%
Current Reserves:67 Million BOE Net Reserve Impact:45 Million BOE
% Reserve Increase:67% Current Share Price: $15.25 CDN
Net Asset Value:$6.36 Increase in Asset/Share: $5.92
Potential Net Asset Value: $12.28
WESTMINSTER RESOURCES WML – TSE
Shares Issued: 19,764,412 % Interest: 7.5%
Current Reserves:15 Million BOE Net Reserve Impact: 45 Million BOE
% Reserve Increase: 308% Current Share Price: $5.00 CDN
Net Asset Value:$4.13 Increase in Asset/Share:$17.07
Potential Net Asset Value: $21.20
ELK POINT RESOURCES ELK – TSE
Shares Issued: 21,682,573 % Interest: 7.5%
Current Reserves:23.4 Million BOE Net Reserve Impact:45 Million BOE
% Reserve Increase: 192% Current Share Price: $4.00 CDN
Net Asset Value:$6.54 Increase in Asset/Share:$15.56
Potential Net Asset Value: $22.10
STANFORD OIL AND GAS SOG - VSE
Shares Issued: 15,500,000 % Interest: 4.92%
Current Reserves:4.5 Million BOE Net Reserve Impact:29.5 Million BOE
% Reserve Increase:526% Current Share Price: $1.45 CDN
Net Asset Value:$0.85 Increase in Asset/Share: $14.27
Potential Net Asset Value: $15.12
HILTON PETROLEUM HTP – VSE
Shares Issued: 8,800,000 % Interest: 4.92%
Current Reserves:1.2 Million BOE Net Reserve Impact:29.5 Million BOE
% Reserve Increase:3,737% Current Share Price:$10.50 CDN
Net Asset Value$0.97 Increase in Asset/Share: $25.14
Potential Net Asset Value: $26.11
RICHLAND PETROLEUM RLP – TSE
Shares Issued: 12,646,000 % Interest: 3.75%
Current Reserves: 8.6 Million BOE Net Reserve Impact:22.5 Million BOE
% Reserve Increase: 261% Current Share Price: $2.75 CDN
Net Asset Value:$2.92 Increase in Asset/Share: $13.34
Potential Net Asset Value: $16.26
KOOKABURRA RESOURCES KOB – TSE
Shares Issued: 18,500,000 % Interest: 4.92%
Current Reserves: Nil Net Reserve Impact:29.5 Million BOE
% Reserve Increase:N/A Current Share Price: $1.25 CDN
Net Asset Value: Nominal Increase in Asset/Share:$11.95
Potential Net Asset Value: $11.95
For further information and discussion about the geology and potential, call:
Desmond O'Kell or John LaGourgue at Eland Jennings
TOLL FREE: 888.303.3361 Fax: 403.944.2618 Email: eljen@telusplanet.net
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