-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DXO4StvuJ0ImIqCF9YCcZrI6LJyZQY7b5+1BGO6Y1h/JeMXkfe+kCezMF4/Sl1ue swy5TdDdjZZBS+Ddaj1VGg== 0000889812-98-000931.txt : 19980415 0000889812-98-000931.hdr.sgml : 19980415 ACCESSION NUMBER: 0000889812-98-000931 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980212 ITEM INFORMATION: FILED AS OF DATE: 19980414 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TENGASCO INC CENTRAL INDEX KEY: 0001001614 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 870267438 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-29386 FILM NUMBER: 98593673 BUSINESS ADDRESS: STREET 1: 603 MAIN AVE STREET 2: SUITE 500 CITY: KNOXVILLE STATE: TN ZIP: 37902 BUSINESS PHONE: 4235231124 MAIL ADDRESS: STREET 1: 630 MAIN AVENUE STREET 2: SUITE 500 CITY: KNOXVILLE STATE: TN ZIP: 37902 8-K/A 1 AMENDMENT TO CURRENT REPORT Securities and Exchange Commission Washington, D.C. 20549 Form 8-K/A Current Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): February 12, 1998 ----------------- Tengasco, Inc. (Exact name of Registrant as specified in its charter) Commission File Number 0-20975 Tennessee 87-0267438 --------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 603 Main Avenue, Suite 500, Knoxville, Tennessee 37902 ------------------------------------------------------ (Address of Principal Executive Offices) (423) 523-1124 -------------- (Registrant's Telephone number, including area code) Item 7. Financial Statements and Exhibits. (a) Financial statements of businesses acquired. Independent auditor's report, statements of revenues and direct operating expenses and notes to financial statements of the properties acquired by Tengasco, Inc. from AFG Energy, Inc. (b) Pro forma financial information. Pro forma combined statements of loss for year ended December 31, 1997 for Tengasco, Inc. and the properties acquired by Tengasco, Inc. from AFG Energy, Inc. (c) Exhibits. 2.1 (a) Exhibit A to Agreement dated December 18, 1997 between AFG Energy, Inc. and Tengasco, Inc. regarding sale of assets of AFG Energy, Inc. 2 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused and authorized this report to be signed on its behalf by the undersigned. Dated: April 13, 1998 Tengasco, Inc. By: /s/ Robert M. Carter --------------------------- Robert M. Carter, President 3 Kansas Properties Statements of Revenues and Direct Operating Expenses Years Ended December 31, 1997 and 1996 Kansas Properties Statements of Revenues and Direct Operating Expenses Years Ended December 31, 1997 and 1996 Kansas Properties Contents Independent Auditors' Report 2 Financial Statements Statements of revenues and direct 3 operating expenses Notes to financial statements 4-7 Independent Auditors' Report Board of Directors Tengasco, Inc. Knoxville, Tennessee We have audited the accompanying statements of revenues and direct operating expenses of the properties acquired by Tengasco, Inc. from AFG Energy, Inc. ("the Kansas Properties") for the years ended December 31, 1997 and 1996. These financial statements are the responsibility of AFG Energy, Inc. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. The accompanying financial statements were prepared on the basis discussed in Note 1 and are for the purpose of complying with certain rules and regulations of the Securities and Exchange Commission ("SEC") for inclusion in certain SEC regulatory reports and filings of Tengasco, Inc. and are not intended to be a complete presentation of the revenues and expenses of the Kansas Properties. In our opinion, the financial statements referred to above present fairly, in all material respects, the revenues and direct operating expenses of the Kansas Properties for the years ended December 31, 1997 and 1996, in conformity with generally accepted accounting principles. BDO Seidman, LLP Atlanta, Georgia March 12, 1998 2 Kansas Properties Statements of Revenues and Direct Operating Expenses - -------------------------------------------------------------------------------- Year ended December 31, 1997 1996 - -------------------------------------------------------------------------------- Revenues Oil $2,687,816 $2,378,882 Gas 742,513 789,613 - -------------------------------------------------------------------------------- Total revenues 3,430,329 3,168,495 Direct operating expenses (2,207,201) (1,936,272) - -------------------------------------------------------------------------------- Revenues in excess of direct operating expenses $1,223,128 $1,232,223 - -------------------------------------------------------------------------------- See accompanying notes to financial statements. 3 Kansas Properties Notes to Financial Statements - -------------------------------------------------------------------------------- 1. Basis of Presentation Pursuant to an agreement effective December 31, 1997, Tengasco, Inc. acquired AFG Energy, Inc.'s interest in certain producing oil and gas properties located in the state of Kansas ("the Kansas Properties"). The acquisition has been accounted for as a purchase and the results of operations for the Kansas Properties will be included in Tengasco's results of operations beginning January 1, 1998. The accompanying statements of revenues and direct operating expenses ("the Historical Statements") were prepared from the historical accounting records of AFG Energy, Inc. The Historical Statements are presented using accrual basis, successful efforts accounting for oil and gas activities, in accordance with generally accepted accounting principles. Gross revenues and direct operating expenses included herein are not necessarily representative of future operations. Additionally, the Historical Statements do not include depreciation, depletion and amortization, administrative and general expenses, interest expense, or Federal and state income taxes. Complete financial statements, including a balance sheet, are not presented as the Kansas Properties were not maintained as a separate business unit, and assets, liabilities or indirect operating costs applicable to the Kansas Properties were not segregated. Accordingly, it is not practicable to identify all assets, liabilities or indirect operating costs applicable to the Kansas Properties. 2. Supplemental Oil and Estimated Quantities of Proved Oil and Gas Gas Information Reserves (Unaudited) (Unaudited) ------------------------------------------ The reserve information presented below is based on the December 31, 1997 reserve report prepared by an independent petroleum engineer. The December 31, 1996 and 1995 information has been computed by adjusting the December 31, 1997 reserve report for production and known purchases. 4 Kansas Properties Notes to Financial Statements - -------------------------------------------------------------------------------- Proved reserves are estimated quantities of crude oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those which are expected to be recovered through existing wells with existing equipment and operating methods. Below are the net quantities of proved reserves and proved developed reserves for the Kansas Properties:
Oil (Bbls) Gas (Mcf) --------------------------------------------------------- Proved reserves at December 31, 1995 1,466,489 3,439,692 Production (114,660) (432,753) Acquisition of proved reserves 674,154 869 ---------------------------------------------------------- Proved reserves at December 31, 1996 2,025,983 3,007,808 Production (141,535) (353,558) ---------------------------------------------------------- Proved reserves at December 31, 1997 1,884,448 2,654,250 ---------------------------------------------------------- Proved developed producing reserves at December 31, 1997 1,277,707 1,384,980 ---------------------------------------------------------- Proved developed producing reserves at December 31, 1996 1,419,244 1,738,539 ----------------------------------------------------------
Standardized Measure of Discounted Future Net Cash Flows (Unaudited) The Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves ("the Standardized Measure") is a disclosure requirement under Statement of Financial Accounting Standards No. 69. The Standardized Measure does not purport to present the fair market value of the proved oil and gas reserves. This would require consideration of expected future economic and operating conditions, which are not taken into account in calculating the Standardized Measure. 5 Kansas Properties Notes to Financial Statements - -------------------------------------------------------------------------------- Under the Standardized Measure, 1997 and 1996 future cash inflows were estimated by applying December 31, 1997 and 1996 prices, respectively, adjusted for fixed and determinable escalations, to the estimated future production of proved reserves. Future cash inflows for 1997 and 1996 were reduced by estimated future production, development and dismantlement costs based on 1997 and 1996 year-end costs, respectively, to determine pre-tax cash inflows. Future net cash inflows were discounted using a 10% annual discount rate to arrive at the Standardized Measure. No deduction has been made for general and administrative expenses, interest expense, provisions for depreciation, depletion or amortization, or taxes on income. The following Standardized Measure and changes in the Standardized Measure are based on the reserve estimate performed as of December 31, 1997, using appropriate year-end prices and costs. Set forth below is the Standardized Measure (before income taxes) relating to proved oil and gas reserves at December 31,1997 and 1996:
1997 1996 ------------------------------------------------------------------- Future cash inflows $ 36,523,378 $ 55,344,098 Future production costs and taxes (18,128,184) (18,854,868) Future development costs (1,336,050) (1,855,550) ------------------------------------------------------------------- Future net cash inflows 17,059,144 34,633,680 Discount at 10% for timing of cash flows (6,707,755) (15,597,754) ------------------------------------------------------------------- Standardized Measure (before income taxes) of discounted future net cash flows $ 10,351,389 $ 19,035,926 -------------------------------------------------------------------
6 Kansas Properties Notes to Financial Statements - -------------------------------------------------------------------------------- The Standardized Measure of discounted future net cash flows is based on the following oil and gas prices at December 31, 1997 and 1996:
1997 1996 ------------------------------------------------------------------ Oil (per Bbl) $16.48 $22.70 Gas (Mcf) 2.06 3.11 --------------------------------------------------------------------
The following table sets forth the changes in the Standardized Measure (before income taxes) during 1997 and 1996:
1997 1996 ----------------------------------------------------------------- Standardized Measure (before income taxes), beginning of year $19,035,926 $ 7,195,410 Sales, net of production costs and taxes (1,223,128) (1,232,223) Acquisition of proved reserves - 5,409,784 Changes in prices and production costs (9,269,527) 6,936,079 Interest factor - accretion of discount 1,903,593 719,541 Changes in production rates and other (95,475) 7,335 ------------------------------------------------------------------ Standardized Measure (before income taxes), end of year $10,351,389 $19,035,926 ------------------------------------------------------------------
7 Tengasco, Inc. and The Kansas Properties Pro Forma Combined Statement of Loss Year Ended December 31, 1997 Tengasco, Inc. and The Kansas Properties Pro Forma Combined Statement of Loss Year Ended December 31, 1997 Tengasco, Inc. and The Kansas Properties Contents Financial Statement Pro forma combined statement of loss (unaudited) 2 Notes to pro forma financial statement 3-7 Tengasco, Inc. and The Kansas Properties Pro Forma Combined Statement of Loss (Unaudited) Year Ended December 31, 1997
Kansas Pro Forma Pro Forma Tengasco, Inc. Properties Adjustments Combined ----------------------------------------------------------------------------------------------------------------- Revenues Oil $ - $ 2,687,816 $ - $ 2,687,816 Gas - 742,513 - 742,513 ----------------------------------------------------------------------------------------------------------------- Total revenues - 3,430,329 - 3,430,329 ----------------------------------------------------------------------------------------------------------------- Cost and expenses Production costs and taxes 3,748 2,207,201 - 2,210,949 Depletion, depreciation and amortization 79,267 - 531,233 610,500 General and administrative costs 1,535,841 - 40,000 1,575,841 Interest expense 1,691,754 - 174,533 1,866,287 Public relations 395,292 - - 395,292 Legal and accounting 390,297 - - 390,297 Realized loss on sale of investments 80,677 - - 80,677 ----------------------------------------------------------------------------------------------------------------- Total costs and expenses 4,176,876 2,207,201 745,766 7,129,843 ----------------------------------------------------------------------------------------------------------------- Net income (loss) (4,176,876) 1,223,128 (745,766) (3,699,514) ----------------------------------------------------------------------------------------------------------------- Basic and diluted loss per common share $(0.67) $(0.60) -----------------------------------------------------------------------------------------------------------------
See accompanying notes to pro forma financial statement. 2 Tengasco, Inc. and The Kansas Properties Notes to Pro Forma Financial Statement (Unaudited) - -------------------------------------------------------------------------------- The unaudited pro forma combined statement of loss for the year ended December 31, 1997 gives effect to the acquisition by Tengasco, Inc. of certain producing oil and gas properties located in the state of Kansas ("the Kansas Properties") as if the acquisition, accounted for as a purchase, had occurred on January 1, 1997. The pro forma information is based on the historical consolidated financial statements of Tengasco, Inc. and the historical statement of revenues and direct operating expenses of the Kansas Properties for the year ended December 31, 1997, after giving effect to the acquisition and the assumptions and adjustments in the accompanying notes to the pro forma financial statement. The pro forma financial statement has been prepared by Tengasco, Inc. based upon the historical statement of revenues and direct operating expenses of the Kansas Properties (included elsewhere in the Form 10-K). The pro forma financial statement may not be indicative of the results that actually would have occurred if the combination had been effective on the dates indicated or which may be obtained in the future. The pro forma financial statement should be read in conjunction with the audited consolidated financial statements of Tengasco, Inc. and the audited statement of revenues and direct operating expenses of the Kansas Properties. Basis of Presentation Tengasco, Inc. follows the full cost method of accounting for oil and gas properties. Under this method, all productive and nonproductive costs incurred in connection with the acquisition of, exploration for and development of oil and gas reserves for each cost center are capitalized. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated costs of plugging and abandonment, net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The capitalized oil and gas properties, less accumulated depletion, depreciation and amortization and related income taxes, are generally limited to an amount (the ceiling limitation) equal to the sum of: (a) the present value of estimated future net revenues computed by applying current prices in effect as of the balance sheet date to estimated future production of proved oil and gas reserves, less estimated future expenditures (based on current costs) to be incurred in developing and producing the 3 Tengasco, Inc. and The Kansas Properties Notes to Pro Forma Financial Statement (Unaudited) - -------------------------------------------------------------------------------- reserves using a discount factor of 10% and assuming continuation of existing economic conditions; and (b) the cost of investments in unevaluated properties excluded from the costs being amortized. The accompanying pro forma combined statement of loss for the year ended December 31, 1997 was prepared using the full cost method of accounting in conformity with generally accepted accounting principles. Pro Forma Adjustments The following pro forma adjustments are made to reflect additional costs which would have been incurred by Tengasco, Inc. had the Kansas Properties been acquired as of January 1, 1997 and are reflected in the accompanying pro forma combined statement of loss for the year ended December 31, 1997: Amount ------------------------------------------------ Additional depletion, depreciation and amortization $531,233 Interest expense on the acquisition note payable 174,533 Additional general and administrative expenses 40,000 ------------------------------------------------ $745,766 ------------------------------------------------ Pro Forma Supplemental Oil Pro Forma Estimated Combined Quantities of and Gas Information Proved Oil and Gas Reserves (Unaudited) (Unaudited) The pro forma combined reserve information presented below is based on the December 31, 1997 reserve reports prepared by Coburn Petroleum Engineering and Columbia Engineering, independent petroleum engineering firms. The January 1, 1997 information has been computed by adjusting the December 31, 1997 reserve reports for production and known purchases. The following table sets forth the combined net proved oil and gas reserves at December 31, 1997 and the pro forma changes in the combined net proved oil and gas reserves for the year then ended. Proved reserves are estimated quantities of crude oil, natural gas and natural gas liquids in which geological and 4 Tengasco, Inc. and The Kansas Properties Notes to Pro Forma Financial Statement (Unaudited) - -------------------------------------------------------------------------------- engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. The reserve information indicated below requires substantial judgment on the part of the reserve engineers, resulting in estimates which are not subject to precise determination. Accordingly, it is expected the estimates of reserves will change as future production and development information becomes available and revisions in these estimates could be significant.
Oil (Bbls) Gas (Mcf) ---------------------------------------------------------------------- Proved reserves at January 1, 1997 2,127,548 25,575,163 Discoveries and extensions 198,065 75,476 Revisions of previous estimates (101,565) (4,679,460) Production (141,535) (353,558) ---------------------------------------------------------------------- Proved reserves at December 31, 1997 2,082,513 20,617,621 ----------------------------------------------------------------------
Pro Forma Standardized Measure of Discounted Future Net Cash Flows (Unaudited) The following table sets forth the pro forma standardized measure of discounted future net cash flows from the combined proved oil and gas reserves of Tengasco, Inc. and the Kansas Properties at December 31, 1997 as if the acquisition of the Kansas Properties had occurred on January 1, 1997. The standardized measure of discounted future net cash flows does not purport to present the fair market value of the proved oil and gas reserves as this would require consideration of expected future economic and operating conditions, which are not taken into account in the calculation. 5 Tengasco, Inc. and The Kansas Properties Notes to Pro Forma Financial Statement (Unaudited) - -------------------------------------------------------------------------------- Amount ------------------------------------------------ Future cash inflows $ 87,493,504 Future production costs and taxes (21,813,667) Future development costs (2,873,550) Future income tax expenses (12,918,485) ------------------------------------------------ Net cash flows 49,887,802 Discount at 10% for timing of cash flows (17,864,113) ------------------------------------------------ Discounted future net cash flows from proved reserves $ 32,023,689 ------------------------------------------------ The following table sets forth the pro forma changes in the standardized measure of discounted future net cash flows from combined proved reserves during 1997: Amount ------------------------------------------------ Balance, January 1, 1997 $44,731,424 Sales, net of production costs and taxes (1,219,380) Discoveries and extensions 1,984,106 Changes in prices and production costs (22,910,339) Revisions of quantity estimates (8,576,161) Changes in development costs 3,882,741 Net change in income taxes 8,137,097 Interest factor - accretion of discount 6,038,403 Changes in production rates and other (44,202) ------------------------------------------------ Balance, December 31, 1997 $32,023,689 ------------------------------------------------ Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using current sales prices, along with estimates of the operating costs, production taxes and future development and abandonment costs (less salvage value) necessary to produce such reserves. The average prices used at December 31, 1997 were $16.53 per barrel of oil and $2.57 per mcf of gas. No deduction has been made for depletion, depreciation and amortization or any indirect costs such as general corporate overhead or interest expense. 6 Tengasco, Inc. and The Kansas Properties Notes to Pro Forma Financial Statement (Unaudited) - -------------------------------------------------------------------------------- Operating costs and production taxes are estimated based on current costs with respect to producing oil and gas properties. Future development costs are based on the best estimate of such costs assuming current economic and operating conditions. Income tax expense is computed based on applying the appropriate statutory tax rate to the excess of future net cash flows less future production and development costs over the tax basis of the properties involved, less applicable carryforwards, for both regular and alternative minimum tax. The future net revenue information assumes no escalation of costs or prices, except to gas sales made under terms of contracts which include fixed and determinable escalation. Future costs and prices could significantly vary from current amounts and, accordingly, revisions in the future could be significant. 7 EX-2.1(A) 2 ASSET LISTING 12/18/97 EXHIBIT A Page 1 of 14 AFG Energy Inc. Kansas Office Asset Listing 1. Approximately 50-mile gathering system 2. Three compressors 3. Rolling stock, 11 vehicles 4. Total of 273 wells 207 productive with associated pumping units, tank batteries, etc. 34 SWD 32 wells TA'd, some with equipment 5. Office equipment 3 PCs with printers 1 copy machine 3 offices furnished with normal fixtures; 2-way radios in all vehicles, with base station in office 6. Office space leased @ $400/month 7. Various spare parts and equipment 12/18/97 EXHIBIT A Page 2 of 14 Compressors AFG-owned: 3 - G342/JG-2 Ariel Compressors 20# suction, each machine will move 1.279 MMCF/day; all three at 3.8 MMCF/day with discharge of 240# AFG has a gathering system consisting of about 50 miles of pipe. Gas is delivered to AFG's compressor station at Otis, Kansas, boosted to plus or minus 300# for delivery into a KN Energy line for use as plant fuel at KN's Bushton gas processing plant east of Otis, Kansas. 12/18/9 EXHIBIT A Page 3 of 14 Rolling Stock Serial No. License No. - ------------- ---------- ----------- 95 Chevy Pickup 1GCEK14Z4SZ165806 IGY 270 97 Dodge Pickup lB7GG23X5YS188007 IGY 268 95 Chevy Pickup 1GCEK14Z9S236062 IGY 275 95 Chevy Pickup 1GCEK14Z5S236799 IGY 276 95 Chevy Pickup 1GCEK14Z2Sl20l53 IGY 271 94 Chevy Pickup 1GCK14Z3RZ162258 IGY 269 93 Chevy Pickup 1GCCT14Z9P8137775 IGY 273 97 Ford Pickup IFTEF14Y2TLB0362 MAU 224 81 Intl. Old Water Truck 1HTAA17E3BHA25767 IGX 694 91 Intl. New Water Truck 1HTSHNROMH331186 IGX 693 Exhibit A Page 4 of 14 TOTALS - ALL PROPERTIES Equip. Non-Eq. SWD Prod. TA'd TA'd ================================================================ Woodman-Iannitti 12 53 2 Hill City 6 24 2 3 Hays 7 24 1 5 AFG Oil 6 32 9 K-N 11 1 West Gas / North Gas 5 1 Reichel 6 AFG Gas 1 36 3 Croffott 2 16 3 2 ===================================== TOTAL 34 207 10 22 TOTAL WELLS 273 Exhibit A Page 5 of 14 WOODMAN - IANNITTI WELLS
County Lease Name Prod. TA'd SWD WI NRI ================================================================================ Barton Ben Tempero 1 1 1.000 0.82031240 Barton Deutsch 2 1.000 0.82031250 Barton Hammeke 1 1.000 0.83398440 Barton H. Karst 1 1 0.81250 0.702051 Barton Howlier 1 0.93700 0.768633 Barton Iannitti 6 1 1.000 0.875 Barton Keenan 'B' 2 0.992754 0.86866 Barton Lander 2 0.915630 0.741803 Barton Nuss 1 0.81250 0.699080 Barton Rose 3 1.000 0.875 Dual Comp. Barton Unruh 2 1 0.81250 0.710938 Barton Weis SWD 1 Edwards Henning 1 0.8750 0.708801 Osborne Hobrock 2 1 0.593750 0.480947 Osborne Hogan 4 0.59375 0.480972 Osborne Maier 1 0.81250 0.676025 Pawnee Barstow 1 0.93750 0.769043 Pawnee Lovett 1 1 1.000 0.768633 Pawnee O. Schultz 2 0.93750 0.820313 Pawnee Oetkin 3 1 1 0.93750 0.794678 Rice Whiteman-Holland 3 1.000 0.82031250 Russell Beisel 4 1 1.000 0.875 Russell Thacker 2 1.000 0.84765630 Dual Comp. Stafford Beckerdite 1 1 0.93750 0.807495 Stafford Hoffman 1 1 0.68750 0.556915 Stafford Miller 1 0.8750 0.708801 Stafford Schulz 2 0.68750 0.554449 Stafford Williams 2 1 0.8750 0.715210 Stafford Oscar Miller 1 1.000 0.82031250 ===================== TOTAL 53 2 12
Exhibit A Page 6 of 14 HILL CITY (Oil Wells) Equip. Non-Eq. County Lease Name SWD Prod. TA'd TA'd WI NRI =============================================================================== Rooks Harrison 'A' 1 5 1 1.000 0.875 Rooks Finnesy 1 3 1.000 0.875 Rooks Watts 1 1.000 0.809380 Rooks Hindman 1 1.000 0.809370 Rooks Dougherty East 1 1.000 0.76650 Rooks Stebbins 1 1.000 0.751570 Rooks Dick 1 1 1 1.000 0.875 Rooks Stahl 4 1 1.000 0.843750 Rooks Kaba 1 1.000 0.847656 Rooks Cerrow 1 1.000 0.875 Graham DeYoung 1 2 1.000 0.875 Rooks Lowry 1 1.000 0.847656 Rooks Hilgers 'B' 1 2 1 1 1.000 0.875 Rooks Towns 1 TOTAL ============================ 5 24 2 3 Exhibit A Page 7 of 14 HAYS (Oil Wells) Equip. Non-Eq. County Lease Name SWD Prod. TA'd TA'd WI NRI =============================================================================== Ellis Kraus 'A' 3 1 1 1.000 0.820310 Ellis Kraus 1 1 1.000 0.792969 Trego Ridgeway 1 1 1 1.000 0.77930 Ellis Schneller 1 3 1.000 0.820313 Trego Keller 'A' 1 2 1 1.000 0.8750 Ellis Leiker 1 0.41667 0.364590 Ellis Grass 1 1.000 0.8750 Trego Keller 2 1.000 0.8750 Trego Baugher 1 1 1.000 0.765630 Ellis Flax 1 1.000 0.8750 Ellis Honas 1 1.000 0.820310 Ellis Kraus 'I' 1 2 1.000 0.820313 Ellis Kinderknecht 'B' 2 1.000 0.8750 Ellis Kraus 'B' 1 2 1.000 0.8750 Trego Schoenthaler 1 1.000 0.77500 Trego Schoenthaler 'A' 1 1.000 0.77500 Kramer 1 TOTAL ========================= 7 24 1 5 Exhibit A Page 8 of 14 AFG (Oil Wells) Equip. Non-Eq. County Lease Name SWD Prod. TA'd TA'd WI NRI =============================================================================== Rush Urban 4 1.000 0.8750 Russell Foster 1 2 1 1.000 0.847656 Rooks Jaco 1 3 1 1.000 0.8750 Rooks Mosher 1 2 1.000 0.8750 Rooks Ross 1 1 1.000 0.8750 Rush Urban 'D' 1 2 1.000 0.8750 Rooks Axelson 2 1.000 0.792969 Graham Lewis 2 1 1.000 0.8750 Rooks Garvert 'A' 1 1.000 0.8750 Rush Jacobs 'B' 1 1.000 0.8750 Rooks Garvert 'B' 1 1.000 0.8750 Rooks Thyfault 1 1 1.000 0.820313 Rooks Bardot 1 3 1.000 0.8750 Rooks Harrison 'C' 1 1 1.000 0.8750 Rush Breit 1 1.000 0.8750 Rooks Andreson 'A' 1 1.000 0.8750 Rush Urban 'K' 1 1 1.000 0.8750 Rush Ochs 1 1.000 0.8750 Rooks Thompson 'A' 1 1.000 0.8750 Rush Dechant 'B' 1 1.000 0.8750 Rush Schwindt Farms 1 1.000 0.820313 Rush Kaiser 'A' 1 1.000 0.8750 Rush Wilson 1 ======================= TOTAL 6 32 0 9 Exhibit A Page 9 of 14 K-N (Gas Wells) County Lease Name Prod. TA'd WI NRI =============================================================================== Rush Schneider 1 1.000 0.820313 Rush Foos 1 1.000 0.820313 Rush Hanhardt 'A' 1 1.000 0.820313 Rush Beahm 1 1.000 0.820313 Rush Appl 2 1.000 0.820313 Rush Rau 1 1.000 0.820313 Rush Steitz 'B' 1 1.000 0.820313 Rush Foos 'A' 1 1.000 0.820313 Rush Kleweno 1 1.000 0.820313 Rush Bieber 1 1.000 0.820313 Rush Hanhardt 1 1.000 0.820313 =========== TOTAL 11 1 Exhibit A Page 10 of 14 WEST GAS (Gas Wells) County Lease Name Prod. TA'd WI NRI ================================================================================ Rush Muth 2 1.000 0.722656 Rush Legleiter 'A' 1 1.000 0.738281 NORTH GAS (Gas Wells) Rush Legleiter 'B' 1 1.000 0.8750 Rush Legleiter 'C' 1 1.000 0.8750 Rush Graham 1 1.000 0.8750 =============== TOTAL 5 1 Exhibit A Page 11 of 14 REICHEL (Gas Wells) County Lease Name Prod. TA'd WI NRI =============================================================================== Rush Reichel 1 1.000 0.8750 Rush Bieber 1 1.000 0.8750 Rush Rothe #1-31 1 1.000 0.8750 Rush Thielenhaus 1 1.000 0.8750 Rush Gillig 1 1.000 0.8750 Rush Kleweno 1 1.000 0.8750 ======= TOTAL 6 Exhibit A Page 12 of 14 AFG (Gas Wells) County Lease Name Prod. TA'd SWD WI NRI =============================================================================== Rush Kober 1 1.000 0.8750 Rush Urban R&A 1 1.000 0.8750 Rush Giesick 2 1.000 0.8750 Rush Torrey 1 1.000 0.861328 Rush Rothe 1 1.000 0.820313 Rush Decker 'A' 1 1.000 0.868164 Rush Allen 'A' & 'D' 1 1 1.000 0.8750 Rush Grumbein 'A' 1 1.000 0.8750 Rush Scheuerman 1 1.000 0.8750 Rush Holzmeister 'B' 1 1.000 0.861328 Rush Edwards 1 1.000 0.8750 Rush Lippert 'B' 2 1.000 0.765625 Rush Ochs 'A' 1 1.000 0.8750 Rush Sherwood 1 1.000 0.792969 Rush Lippert 2 1.000 0.861328 Rush Lippert 'C' 1 1.000 0.765625 Rush Hoofer 1 1.000 0.861328 Rush Lebsack 'A' 1 1.000 0.783854 Rush Hartman 'C' 1 1.000 0.820313 Rush Elder 1 1.000 0.8750 Rush Honderick 'C' 1 1.000 0.8750 Rush Steitz 'A' 1 1.000 0.8750 Rush Janson 'A' 1 1.000 0.8750 Rush Odell 1 1.000 0.861328 Rush Ochs 1 1.000 0.8750 Rush Holzmeister 1 1.000 0.847656 Rush Brack 'A' 1 1.000 Rush Frye 1 1.000 0.8750 Rush Holzmeister 'A' 1 1.000 0.847656 Rush Hoffman 1 1.000 0.820313 Rush Basgall 'C' 1 1.000 0.8750 Rush Bahr 1 1.000 0.8750 Rush Kaiser 1 1.000 0.8750 Rush Schlitter 1 1.000 0.861328 Rush Kansas State #3 1 ================= 36 2 1 Exhibit A Page 13 of 14 CROFFOOT (Oil Wells) Equip. Non-Eq. County Lease Name SWD Prod. TA'd TA'd WI NRI =============================================================================== Rooks Croffoot 1 4 1 1.000 0.861328 Rooks Croffoot 'A' 3 1 1 1.000 0.803864 Rooks Croffoot 'B' 1 7 1 1 1.000 0.820313 Rooks Croffoot 'C' 2 1.000 0.806641 ============================= TOTAL 2 16 3 2 Exhibit A Page 14 of 14 County Lease Name NRI ======================================================= Graham Anderson 'A' 0.006836 ORR Graham Bell 0.008545 ORR Graham Farrell 'A' 0.016525 ORR Russell Mills 'B' 0.027344 ORR Ellis Pfeifer 0.102539 WI Ellis Roth 0.059245 WI Ellis Ruder 0.003418 ORR Ellis Spreen 0.013672 ORR Ellis Swires 0.005127 ORR -----END PRIVACY-ENHANCED MESSAGE-----