AFE for Salt Water Injection Project
On average in the United States, the oil and gas industry produces
approximately 10 barrels of salt water for every one barrel of oil. The
water is then separated for disposal, or injection into approved
This lease owned by C.C. Sanders and is
valued at $3,200,000.00
with four holes drilled at $800,000.00
UBS values the minerals at $300 million
This 640 acres lease which has four holes
that have been drilled to 7,500 feet has an investment of $3.2 million
in current assets on the property.
AFE cost for SWD completion and brought
online for disposal.
bonding, permits, licensing, and insurance for project.
$75,000.00 will be used to bring SWD well online (AFE below)
$100,000.00 equals 1/32 of the lease value
an interest of $0.03125
$75,000.00 or the costs of getting one SWD online.
From here we are heads up on the other three wells to get them online.
ROI outlined at the bottom.
Of the lease, the company may divide from
a 75% NRI lease on SWD.
25% ORRI to Sanders - Lessor
75% NRI to Lonestar Natural Gas - Lessee (25% to LNG)
50% of the lease proceeds can be divided equally to the
partner (half of lease roi)
partner X, partner X , and LNG/ Lessee
at 25% Lessor at 25%
AFE cost to bring on SWD
price per foot of used tubing
2 1/2 inch pipe per foot - $1.45 a foot
2 7/8 inch pipe per foot - about $1.55 a foot
used about $10,000.00
copy of API certified logs $500
Well head assembly unit - (Christmas tree for
separator oil / water / gas 3 way separator $5,000
two 300 bbl tanks $5,000
perforation services $5,000
pulling unit and crew $8,000
wireline unit and crew $5,000
costs about $43,500.00
ROI ON SWD
RRC will allow 5,000 BBL of SWD a day per well.
This a 1 well projection.
@ $10.00 a BBL = $50,000.00
a day ROI 1 month $1.5 million 1 year
@ $5.00 a BBL = $25,000.00 a
day ROI 1 month $750,000.00 1 year $9,000,000.00
@ $2.50 a BBL = $12,500.00 a
day ROI 1 month $375,000.00 1 year $4,500,000.00
@ $1.00 a BBL = $5,000.00
a day ROI 1 month $150,000.00 1 year $1,800,000.00
@ $.50 a BBL = $2,500.00
a day ROI 1 month $75,000.00 1 year
@ $.25 a BBL = $1,250.00
a day ROI 1 month $37,500.00 1 year
@ $.10 a BBL = $500.00
a day ROI 1 month $15,000.00 1 year
@ $.05 a BBL = $250.00
a day ROI 1 month $7,500.00 1
The Gas Company, Inc.
Lonestar Natural Gas, Inc.
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