Economic Evaluation

• Pay-out 2 years

• Internal Rate of Return 42.2 %

• Assumptions

  • Cum production 3,417 STB (7/31/00)
  • Current production 18 BOPD (declining 10%/year)
  • Oil price $25/bbl (held constant)
  • Operating expense $1,100/month (held constant)
  • Tax rate 8.3 %
  • Net Revenue Interest 87.5 %

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