mackey lease proposal
DESCRIPTION
Mackey lease project detailsTRANSCRIPT
Mackey Lease Project 2014
Caldwell County, Texas
PROJECT INTRO
Drillers logs from 1936
indicate 176 feet of oil (pay zone)
Oil shown in the Dale Lime and Austin Chalk
formations
The Mackey lease is located
in Caldwell County, TX
The lease spans 200 acres
Drilling to a depth of 2,000
feet
Driller’s Log G. Mackey 1936
Depth (ft) Formation Status Thickness (ft)
1620-1640 Broken Lime Showing Oil 20
1640-1684 Serpentine Dry 44
1684-1840 Lime Showing Oil 156
1840-1920 Serpentine Dry 80
1920-2110 Hard
Serpentine
Dry and
abandoned
190
Mackey potential
Key points
Estimated oil reserves = 20k-30k bbl per well
Total reserves of lease estimated at 400-500k bbl
IP = Range between 70-200 bbl per day
Surrounding wells have produced in excess of 20 years
Excellent opportunity for additional 8-15 well expansion
Mackey expenditures
Total well cost = $215,000
Dry hole cost = $136,000
Additional wells*=$165,000 (due to admin costs, legal costs, and lease costs paid during initial well) *wells to the same depth
Expected Returns per MonthAssuming Oil @ $95 per barrel
3% 5% 10% 15%
35 bbl per day
28 bbl per day
21 bbl per day
12k
10k
8k
6k
4k
2k
Project timelines
Drilling to begin mid to late November
Production to begin by Jan.
2015 or sooner
Subsequent wells to be drilled
Spring of 2015 in multiple well
packages
Investor benefits
Expected ROI in 8-12 months
Multipay has operated in Central Texas for over 25 years
Experience with minimizing operation costs to avoid “operating the profits to death”.
Operating costs to range from $800-$1,000 per well per month
Tax benefits 70%-80% deduction of investment in the first year.
Monthly updates and field reports
Future locations
Potential for 8-15 solid producing wells
Next round of drilling to include a minimum of 2-3 wells in a package to maximize investor ROI
The Proposal
79% Lease to the investor
48% Working Interest Available
Minimum investment required =15k for 5% working interest
Multipay background
Multipay is a family owned company that
has been drilling, buying, selling, and
operating wells in Central, Texas for over
25 years.
The goal at Multipay is to drill projects that
have more than 1 strata. Thus, multi pay
zones. Multiple pay zones increase the
probability of a productive well and
increase the total recoverable oil per well.
Contact Info
Phone: Derek Williams 512-964-0750
Email: [email protected]
Visit our Website at www.MultiPayEnergy.com