Non-Op Partners Wanted for Permian Basin New Drill

The current owners, who have drilled two successful horizontal Devonian laterals just north of
this lease with initial potentials ranging from 1,000 to 2,000 barrels of oil per day, wish to bring
on new owners, by selling down a portion of their interest, and a horizontal new drill in the
University -B- No.3 well. The owners believe the University -B- No. 3 horizontal will
produce over 1,000 barrels of oil per day initially, based on the success of their other wells, and
reach payout in about 3 months. Based on typical Devonian horizontal wells and the projected
initial potential, the lateral should continue to produce oil over the next 50 years.
The University -B- Lease has produced over 1.4 million barrels of oil over the past 71 years of
production and was producing 30 barrels of oil per day from the Devonian prior to being taken
offline in 2019 to prepare for this project.
By drilling a new well, we can place the first take point of the lateral at one undrilled location
and the last take point of the lateral at the second undrilled location, tapping two unswept and
undrilled locations on the west side of the lease and all rock between those locations. Plus the
new wellbore can be drilled and cemented in such a manner to protect the casing to make this a
long-life producer.
The current owners acquired the lease for $1,794,434 and expect the new drill and associated
work to cost $1,887,150 for a combined cost of $3,681,584. The owners wish to sell 50%