Pooling order for Bruins well

Below is the pooling order for the Bruins well.

Of most interest are the leasing parameters on page 4  where the various lease options are detailed.

Cash considerations and associated royalties are as follows

1) US$750 per acre  and 12.5% royalty
2) US$ 500 per acre and  18.75% royalty
3)US$400 per acre and 20% royalty
4) Nil consideration and 25% royalty


https://public.occ.ok.gov/WebLink/D...searchid=b22a2a25-dd03-401b-871d-fe6d44665b23


BRK picking up forced pooled leases in the BRUINS DSU at the above rates is a very good outcome. These options are roughly based on the pre pooling lease arrangements negotiated at the" kitchen table" by the BRK landmen. Bruins is now a 1280 acre multiunit DSU. If BRK manages to pick up ~70% of the WI as guided in the Bruins well announcement, and everyone took up option (a) which is unlikely, BRK would have paid  a maximum ~US$ 0.7 x 1280 x US$750=US$ 672,000 for it's lease position.  The DSU should hold ~4-5 million BOE in recoverable reserves on a 100% WI basis in the  Woodford formation if  4-5 wells are eventually drilled,   and each 10,000ft well has a similar reserve to the Bruins 1 well.

Cheers

Dan