Ann: Woodford Well Sustained Production Results, page-27

Ok, I spent a lazy Friday doing some analysis on the recent SHE / BRK Bullard announcements:

The announcement said production to now has been 50% oil: 50 % gas at US$ 58 and $1.61 respectively. The well has generated gross revenue of 12.13 million on 334,894 BOE. Dividing the two works out to US $ 36.22 average price for the oil/ gas stream (source SHE ANN 28 Nov 2019).

Total gross revenue from the well is predicted to be ~ US $ 43 million (estimate based on normal terminal decline). Dividing that by $/BOE of $36.22 which gives us total produced by the well up to that day of 1.19 million BOE.

Estimate another 4 wells (to be conservative) for full field development implying 4.76 million BOE for the Bullard unit. Multiplying by current $/BOE that is $172.4 million from the Bullard DSU. BRK will have a 20.81% WI in these wells.

Whether BRK keeps the acres (~300) and participates in the wells or sell the reserves they are in a good position with Bullard.

This is for one BRK DSU and the reason why we hold the stock.