Ann: Transforming New Standard Energy , page-188

Two pieces to review ...

http://www.postcarbon.org/reports/DBD-report-FINAL.pdf

EFS covered pg 90 - 99

I can't say I'm too familiar with this report, but as I wait for further information (from company) I'll continue to look at broader based data (or anecdotal evidence for some) to try and a feel for what to expect with the "success case" EUR/IRR.

This is what happens with declines and why so many posters will make mistakes on cashflow calculations - really do need to use proper formulas to estimate each month of production.

So while the first day may produce 500 Bopd that declines in a hyperbolic fashion so that on day 366 it is likely producing 200 bopd. Each play/locality/operator typically have their own type curves to match too.

This paper was really discussing the peak production and decline of the total play. As operators continue to experiment with downspacing and frac techniques, production keeps growing.



This document I would recommend y'all browse, not because it is particularly relevant to the transaction but because it shows what type of information that is missing but could be supplied. Might be familiar to a few...

http://www.albrechtai.com/divestments/Texoz%20Brochure%20Eagle%20Ford.pdf

This is not part of NSE EFS acquisition - shown as example.

1. A Reserve and Economic Summary (from independent assessor) like as follows:

2. A summary Lease Operating Statement (showing all 5 wells and their production and sales) like as follows:

3. Well EUR summary - this should help establish what we should be expecting for the success criteria

4. The expected type curve as shown in the document