financial projections

Some projections of revenue for the current qtr:

Workover wells at say 40 BOPD = 3,600 barrels.
Reese #S2 well at say 250 BOPD = 22,500 barrels.

Total oil production = 26,100 barrels assuming we don't increase storage in this quarter and pump at the rate of 250 BOPD as last reported and negate the fact that Reese #2 well won't be producing for the full quarter as it started mid April.

Assume average Brent Crude price (though is light crude higher?) of $100 for the qtr.

This will generate revenue of $2.61m of which 30% goes to state/federal + landowner royalties leaving $1.827million of which we take a 94% WI leaving $1.72million for the qtr.

Estimated cash outflow for the qtr is $2.95 million leaving a deficit of say $1million though note this includes exploration and development of $2.4million so our operating surplus before this expenditure would be approximately $1.2 million.

We have $4m in the bank now so we would be left with $3m at the end of June based on spending $2.4 million in further drilling and development.

AND..once we get to 700 BOPD revenue net of royalties and WI would be approximately $4.4 million per quarter at $100 / Barrell. Is this achievable within the final calendar qtr of this year, once the primary zone is intersected and brought into production in June/July ? You bet.