EX-99.2 11 exhibit99-2.htm EXHIBIT 99.2 DXI Energy Inc.: Exhibit 99.2 - Filed by newsfilecorp.com

March 20, 2018
 
Mr. David Matheson
Chief Financial Officer, CFO
Dejour Energy (USA) Corp.
520, 999 Canada Place
Vancouver, BC
V6C 3E1
Canada

Subject: Reserve Estimate and Financial Forecast as to Dejour’s Interests in the Kokopelli Field Area, Garfield County, Colorado.

Dear David:

As you requested, Gustavson Associates has completed reserves and economics as to Dejour Energy’s interests in future oil and gas production associated with the Kokopelli Field Area located in Garfield County. Reserves have been estimated based on analysis of analogous well production data. Estimates and projections have been made as of January 1, 2018. Reserves have been estimated in accordance with the US Securities and Exchange Commission’s (SEC) definitions and guidelines, and the report was prepared for the purpose of inclusion as an exhibit in a filing made with the SEC.

In general, Proved Developed Producing (PDP) reserves were assigned to 11 producing wells (shown in Table 2). Proved Developed Non-Producing (PDNP) reserves have been assigned to the Federal 14/15-7-21 well. There are plans to recomplete this well, which is currently producing out of the Mancos shale, in the Williams Fork member of the Mesaverde formation in July 2018. Proved Undeveloped (PUD) reserves have been assigned to 131 well locations. Gustavson is of the opinion that no current regulations, and no anticipated changes to regulations, would inhibit the ability of Dejour to recover the estimated reserves in the manner projected herein. It is our understanding that the reserves estimated herein represent all of Dejour’s US reserves.

The estimated net reserves volumes and associated net cash flow estimates are summarized in Table 1 below.

5757 Central Ave. Suite D Boulder, Co. 80301 USA 1-303-443-2209 FAX 1-303-443-3156 http://www.gustavson.com


Mr. David Matheson
March 20, 2018
Page 2

Table 1 Summary of Net Reserves and Projected Before Tax Cash Flow

Reserves Category Net Gas
Reserves,
MMcf 		Net Oil
Reserves
(MBO) 		Net NGL
Reserves
(MBO) 		Before Tax Net Present
Value, thousands of US$
Discounted at
0% 10%
Proved Developed Producing 774.3 5.7 31.3 $1,435 $954
Proved Developed Non-Producing 203.3 1.8 8.2 $352 $195
Proved Undeveloped 26,629.6 235.0 1,077.6 $21,525 $1,463
Total Proved 27,607.2 242.5 1,117.1 $23,312 $2,612

The portion of the Company’s total reserves represented by the reserves included in this report is shown below.

LocationofReserves
Country 		Area Gas
(MMCF) 		Condensate
(MBBL) 		NGL
(MBBL) 		OilEquivalent
(MBOE) 		Proportionof
Oil Equiv.
Reserves
UnitedStates Colorado 27,607.20 242.5 1117.1 5,960.80 98%
TotalCompany         6,055.80 100%

Gustavson Associates has performed an evaluation of the reserves associated with both developed and undeveloped locations located in the Kokopelli Field Project Area, Garfield County, Colorado. Proved Developed Producing (PDP) Reserves have been assigned to 11 wells (shown in Table 2). The first four wells began producing in July and August of 2013 and next eight wells began producing in September 2015. All these wells are completed in the Williams Fork member of the Mesaverde formation except for one of the new wells, the Federal 14/15-7-21, which is completed in the Mancos shale.

Proved Developed Non-Producing (PDNP) reserves were assigned to the Federal 14-15-7-21 well. There are plans to recomplete this well, which is currently producing out of the Mancos shale, in the Williams Fork member of the Mesaverde formation in July 2018.

The PDP locations are displayed in Figure 1 and Figure 2. The property has additional upside which has not been included in this report. Under current economic conditions, drilling of offset locations in the Williams Fork or Mancos formation does not generate positive economics; therefore, no PUD reserves have been assigned.


Mr. David Matheson
March 20, 2018
Page 3

Table 2 Summary of PDP Wells

Well Name Working Interest Revenue Interest Producing Formation
1. Federal 6/7-16-21 5.5573% 4.4458% Williams Fork
2. Federal 6/7-15-21 7.778% 6.6624% Williams Fork
3. Federal 6/7-14-21 7.778% 6.6624% Williams Fork
4. Federal 6/7-13-21 7.778% 6.6624% Williams Fork
5. Federal 14/15-1-21 25.00% 20.00% Williams Fork
6. Federal 14/15-2-21 25.00% 20.00% Williams Fork
7. Federal 14/15-3-21 25.00% 20.00% Williams Fork
8. Federal 14/15-4-21 25.00% 20.00% Williams Fork
9. Federal 14/15-5-21 25.00% 20.00% Williams Fork
10. Federal 14/15-6-21 25.00% 20.00% Williams Fork
11. Federal 14/15-7-21 25.00% 20.00% Mancos
12. Federal 14/15-8-21 25.00% 20.00% Williams Fork

Figure 1 Map of Dejour Williams Fork Wells


Mr. David Matheson
March 20, 2018
Page 4

Figure 2 Map of Dejour Mancos PDP Location

Oil and Gas Pricing

In order to determine the flat pricing in accordance with SEC guidelines, the Dejour’s revenue statements were analyzed. For all wells, a differential was calculated based on the price that Dejour was paid versus the West Texas Intermediate (WTI) and Henry Hub (HH) spot prices averaged for that given month. These differentials were then applied to the WTI and HH spot prices for the first day of each month in 2017 in order to estimate prices for Dejour’s products on the first day of the month, per SEC guidelines. These values were averaged and applied in the cash flows presented herein.

For Williams Fork wells, the wellhead gas price was estimated at 103.6% of NYMEX Henry Hub gas and the NGL price was found to be a factor of 11.76 times the Henry Hub gas price. The Williams Fork wellhead condensate prices were determined to be 12.4% lower than WTI prices. The utilized flat hydrocarbon pricings for Williams Fork can be found in Table 3.


Mr. David Matheson
March 20, 2018
Page 5

Table 3 Flat Pricing for Williams Fork Wells

Flat Pricing for Effective Data January 1, 2018
 Local Price Differentials Included 
2017 Avg.
WTI 		2017 Avg.
HH 		Wellhead
Oil 		Wellhead
Gas 		NGL
$/B $/mcf $/B $/mcf $/B
51.34 2.99 44.95 3.10 35.18

Expenses

Operating costs are expected to be $2,800 per well per month. This is based on information provided by the Dejour and is consistent with our experience with similar wells in the area. The drilling and completion costs reflects economies of scale and contractual advantages expected to be gained when a large drilling program is executed. Severance tax is deducted at the rate of 1.04% of revenue. County ad valorem tax was estimated at approximately 3.91% of revenue after discussion with Garfield County personnel. Conservation tax was estimated at 0.072% and the annual property tax was estimated as 0.557% of net revenue. Note that Conservation tax rate and property tax are lumped together with Severance tax and Ad Valorem tax in the economics evaluation, respectively For Williams Fork Wells only, an NGL yield of approximately 38 Bbl/mmcf was applied for both Williams Fork and Mancos wells, based on actual data from late 2017 following changes in gas processing. A condensate/gas ratio of 8.3 Bbl/MMCF was applied based on actual 2017 sales. Contractual gas transportation, gathering, and processing fees of $0.71/MCF were deducted as operating costs for both Williams Fork and Mancos wells. Condensate trucking fee of $1.50/Bbl was also applied to the Williams Fork wells. Abandonment costs of $15,000 per well were estimated. All costs were held flat.

Dejour expects the Federal 14-15-7-21 well, currently producing out of the Mancos shale, to be recompleted in the Williams Fork in July 2018. This operation will cost $500,000 US, which Gustavson finds to be reasonable based on estimates from the client and experience in the area.

Detailed cash flow projections are shown in Tables 4 and 5 below. Note that the NGL volumes shown in these tables represent total NGL sales as expected based on the revenue statements provided by the Client.1

Limiting Conditions and Disclaimers

The accuracy of any reserve report or resource evaluation is a function of available data and of engineering and geologic interpretation and judgment. While the evaluation presented herein is believed to be reasonable, it should be viewed with the understanding that subsequent reservoir performance or changes in pricing structure, market demand, or other economic parameters may justify its revision. The assumptions, data, methods, and procedures used are appropriate for the
_________________________________

1 In some previous reports, ethane and heavier NGLs were reported separately. Here they are reported together.


Mr. David Matheson
March 20, 2018
Page 6

purpose served by the report. Gustavson has used all methods and procedures as we considered necessary under the circumstances to prepare the report.

Gustavson Associates, LLC, holds neither direct nor indirect financial interest in the subject property, the company operating the subject acreage, or in any other affiliated companies.

All data and work files utilized in the preparation of this report are available for examination in our offices. Please contact us if we can be of assistance. We appreciate the opportunity to be of service and look forward to further serving Dejour Energy (USA) Corp.

Sincerely,

Letha C. Lencioni, P.E.
GUSTAVSON ASSOCIATES, LLC.
Vice-President, Petroleum Engineering
Registered Professional Engineer, State of Colorado, # 29506

Table 4 Summary Cash Flow Forecast, Proved Developed Producing Reserves

TOTAL PROVED DEVELOPED PRODUCING DATE : 02/26/2018
KOKOPELLI FIELD TIME : 14:44:39
GARFIELD COUNTY, COLORADO DBS : Dejour_YE2017
TO THE INTERESTS OF DEJOUR ENERGY SETTINGS : Dejour
  SCENARIO: Dejour flat

R E S E R V E S A N D E C O N O M I C S

EFF DATE: 01/2018
PW DATE: 01/2018

--END-- GROSS OIL GROSS GAS GROSS NGL NET OIL NET GAS NET NGL NET OIL NET GAS NET NGL TOTAL
MO-YEAR PRODUCTION PRODUCTION PRODUCTION  PRODUCTION  PRODUCTION  PRODUCTION  REVENUE REVENUE REVENUE REVENUE
-------
 ---MBBLS---   ----MMCF---   ---MBBLS---   ---MBBLS--   ----MMCF--   ---MBBLS--   ---M$--- ---M$--- ---M$--- ----M$---
                     
12-2018 4.070 580.658 22.223 0.658 92.279 3.728 29.565 286.121 131.128 446.813
12-2019 3.317 467.759 17.903 0.527 73.171 2.956 23.703 226.875 103.984 354.562
12-2020 2.858 399.241 15.280 0.450 61.870 2.500 20.241 191.833 87.930 300.005
12-2021 2.529 350.811 13.427 0.396 53.992 2.181 17.797 167.407 76.738 261.941
12-2022 2.279 314.448 12.035 0.355 48.139 1.945 15.963 149.262 68.424 233.648
                     
12-2023 2.082 285.973 10.945 0.323 43.596 1.762 14.528 135.174 61.968 211.669
12-2024 1.922 262.972 10.065 0.297 39.951 1.614 13.369 123.873 56.789 194.031
12-2025 1.788 243.942 9.337 0.276 36.953 1.493 12.411 114.577 52.529 179.517
12-2026 1.675 227.895 8.722 0.258 34.438 1.392 11.603 106.778 48.954 167.335
12-2027 1.578 214.147 8.196 0.243 32.292 1.305 10.911 100.125 45.906 156.942
                     
12-2028 1.404 191.497 7.329 0.224 29.807 1.205 10.060 92.419 42.372 144.850
12-2029 1.195 164.882 6.311 0.204 27.300 1.103 9.182 84.647 38.807 132.636
12-2030 1.071 148.779 5.694 0.191 25.572 1.033 8.598 79.290 36.351 124.240
12-2031 1.019 141.288 5.408 0.182 24.284 0.981 8.176 75.294 34.520 117.990
12-2032 0.969 134.294 5.140 0.173 23.083 0.933 7.779 71.570 32.813 112.162
                     
S TOT 29.756 4128.585 158.015 4.758 646.726 26.131 213.884 2005.244 919.214 3138.343
                     
AFTER 5.499 750.346 28.719 0.972 127.566 5.156 43.679 395.532 181.363 620.573
                     
TOTAL 35.255 4878.931 186.734 5.729 774.292 31.287 257.563 2400.776 1100.577 3758.916

--END-- NET OIL NET GAS NET NGL SEVERANCE AD VALOREM NET OPER OPERATING EQUITY UNDISC NET DISC NET
MO-YEAR PRICE  PRICE PRICE TAXES TAXES EXPENSES CASH FLOW  INVESTMENT  CASH FLOW CASH FLOW
------- ---M$--- ---M$--- ---M$--- -----M$---- -----M$---- ----M$---- ----M$---- ----M$---- -----M$---- -----M$----
                     
12-2018 44.95 3.10 35.18 4.955 19.747 155.838 266.273 3.750 262.523 250.284
12-2019 44.95 3.10 35.18 3.932 15.670 134.435 200.525 0.000 200.525 173.812
12-2020 44.95 3.10 35.18 3.327 13.259 124.261 159.158 0.000 159.158 125.414
12-2021 44.95 3.10 35.18 2.905 11.576 117.167 130.293 0.000 130.293 93.335
12-2022 44.95 3.10 35.18 2.591 10.326 111.897 108.834 0.000 108.834 70.876
                     
12-2023 44.95 3.10 35.18 2.347 9.355 107.805 92.162 0.000 92.162 54.563
12-2024 44.95 3.10 35.18 2.152 8.575 104.522 78.782 0.000 78.782 42.401
12-2025 44.95 3.10 35.18 1.991 7.934 101.821 67.772 0.000 67.772 33.159
12-2026 44.95 3.10 35.18 1.856 7.395 99.555 58.529 0.000 58.529 26.034
12-2027 44.95 3.10 35.18 1.740 6.936 97.622 50.643 0.000 50.643 20.478
                     
12-2028 44.95 3.10 35.18 1.606 6.402 92.985 43.858 2.333 41.524 15.260
12-2029 44.95 3.10 35.18 1.471 5.862 87.270 38.033 0.834 37.200 12.434
12-2030 44.95 3.10 35.18 1.378 5.491 84.467 32.904 0.000 32.904 9.996
12-2031 44.95 3.10 35.18 1.309 5.215 83.306 28.161 0.000 28.161 7.778
12-2032 44.95 3.10 35.18 1.244 4.957 82.224 23.738 0.000 23.738 5.960
                     
S TOT 44.95 3.10 35.18 34.804 138.697 1585.175 1379.666 6.917 1372.749 941.783
                     
AFTER 44.95 3.10 35.18 6.882 27.426 500.473 85.793 23.667 62.126 12.144
                     
TOTAL 44.95 3.10 35.18 41.686 166.123 2085.648 1465.458 30.584 1434.875 953.927

  OIL GAS       P.W. % P.W., M$
  --------- ---------       ------ --------
GROSS WELLS 0.0 12.0   LIFE, YRS. 28.25 5.00 1143.235
GROSS ULT., MB & MMF 56.424 8875.085   DISCOUNT % 10.00 9.00 986.127
GROSS CUM., MB & MMF 21.169 3996.155   UNDISCOUNTED PAYOUT, YRS. 0.01 10.00 953.927
GROSS RES., MB & MMF 35.255 4878.931   DISCOUNTED PAYOUT, YRS. 0.01 15.00 822.860
NET RES., MB & MMF 5.729 774.292   UNDISCOUNTED NET/INVEST. 47.92 20.00 727.243
NET REVENUE, M$ 257.563 2400.776   DISCOUNTED NET/INVEST. 118.12 25.00 654.511
INITIAL PRICE, $ 44.955 3.101   RATE-OF-RETURN, PCT. 90.00 35.00 551.083
INITIAL N.I., PCT. 14.598 15.106   INITIAL W.I., PCT. 21.060 50.00 453.381
            70.00 374.330
            90.00 323.649

Table 5 Summary Cash Flow Forecast, Proved Developed Non-Producing Reserves

TOTAL PROVED DEVELOPED NON-PRODUCING DATE : 02/26/2018
KOKOPELLI FIELD TIME : 14:44:40
GARFIELD COUNTY, COLORADO DBS : Dejour_YE2017
TO THE INTERESTS OF DEJOUR ENERGY SETTINGS : Dejour
  SCENARIO : Dejour flat

R E S E R V E S A N D E C O N O M I C S

EFF DATE: 01/2018
PW DATE: 01/2018

--END-- GROSS OIL GROSS GAS GROSS NGL NET OIL NET GAS NET NGL NET OIL NET GAS NET NGL TOTAL
MO-YEAR PRODUCTION PRODUCTION PRODUCTION  PRODUCTION  PRODUCTION  PRODUCTION  REVENUE REVENUE REVENUE REVENUE
------- ---MBBLS---   ----MMCF---   ---MBBLS---   ---MBBLS--   ----MMCF--   ---MBBLS--   ---M$--- ---M$--- ---M$--- ----M$---
                     
12-2018 1.215 145.516 5.570 0.243 27.529 1.114 10.922 85.356 39.187 135.465
12-2019 1.104 132.275 5.063 0.221 25.024 1.013 9.928 77.589 35.621 123.138
12-2020 0.688 82.412 3.155 0.138 15.591 0.631 6.186 48.341 22.193 76.720
12-2021 0.521 62.441 2.390 0.104 11.813 0.478 4.687 36.626 16.815 58.128
12-2022 0.427 51.202 1.960 0.085 9.686 0.392 3.843 30.034 13.788 47.665
                     
12-2023 0.366 43.857 1.679 0.073 8.297 0.336 3.292 25.726 11.811 40.828
12-2024 0.322 38.625 1.478 0.064 7.307 0.296 2.899 22.656 10.401 35.957
12-2025 0.289 34.679 1.327 0.058 6.561 0.265 2.603 20.342 9.339 32.283
12-2026 0.264 31.581 1.209 0.053 5.974 0.242 2.370 18.524 8.505 29.399
12-2027 0.243 29.074 1.113 0.049 5.500 0.223 2.182 17.054 7.829 27.066
                     
12-2028 0.225 26.997 1.033 0.045 5.107 0.207 2.026 15.836 7.270 25.132
12-2029 0.211 25.244 0.966 0.042 4.776 0.193 1.895 14.808 6.798 23.501
12-2030 0.198 23.742 0.909 0.040 4.492 0.182 1.782 13.927 6.394 22.102
12-2031 0.187 22.438 0.859 0.037 4.245 0.172 1.684 13.162 6.043 20.888
12-2032 0.179 21.413 0.820 0.036 4.051 0.164 1.607 12.560 5.766 19.934
                     
S TOT 6.440 771.497 29.531 1.288 145.952 5.906 57.906 452.539 207.760 718.205
                     
AFTER 2.530 303.018 11.599 0.506 57.325 2.320 22.744 177.742 81.601 282.087
                     
TOTAL 8.970 1074.515 41.129 1.794 203.277 8.226 80.650 630.282 289.361 1000.292

--END-- NET OIL NET GAS NET NGL SEVERANCE AD VALOREM NET OPER OPERATING EQUITY UNDISC NET DISC NET
MO-YEAR PRICE   PRICE PRICE TAXES TAXES EXPENSES CASH FLOW  INVESTMENT  CASH FLOW CASH FLOW
------- ---M$--- ---M$--- ---M$--- -----M$---- -----M$---- ----M$---- ----M$---- ----M$---- -----M$---- -----M$----
                     
12-2018 44.95 3.10 35.18 1.502 5.987 29.087 98.888 125.000 -26.112 -26.805
12-2019 44.95 3.10 35.18 1.366 5.442 31.023 85.308 0.000 85.308 73.943
12-2020 44.95 3.10 35.18 0.851 3.391 22.495 49.983 0.000 49.983 39.386
12-2021 44.95 3.10 35.18 0.645 2.569 19.079 35.835 0.000 35.835 25.671
12-2022 44.95 3.10 35.18 0.529 2.107 17.157 27.873 0.000 27.873 18.152
                     
12-2023 44.95 3.10 35.18 0.453 1.804 15.901 22.670 0.000 22.670 13.421
12-2024 44.95 3.10 35.18 0.399 1.589 15.006 18.963 0.000 18.963 10.206
12-2025 44.95 3.10 35.18 0.358 1.427 14.331 16.168 0.000 16.168 7.910
12-2026 44.95 3.10 35.18 0.326 1.299 13.801 13.973 0.000 13.973 6.215
12-2027 44.95 3.10 35.18 0.300 1.196 13.372 12.197 0.000 12.197 4.932
                     
12-2028 44.95 3.10 35.18 0.279 1.111 13.017 10.726 0.000 10.726 3.943
12-2029 44.95 3.10 35.18 0.261 1.039 12.718 9.484 0.000 9.484 3.169
12-2030 44.95 3.10 35.18 0.245 0.977 12.461 8.420 0.000 8.420 2.558
12-2031 44.95 3.10 35.18 0.232 0.923 12.238 7.496 0.000 7.496 2.070
12-2032 44.95 3.10 35.18 0.221 0.881 12.062 6.769 0.000 6.769 1.700
                     
S TOT 44.95 3.10 35.18 7.965 31.741 253.747 424.753 125.000 299.753 186.471
                     
AFTER 44.95 3.10 35.18 3.128 12.467 210.724 55.767 3.750 52.017 8.005
                     
TOTAL 44.95 3.10 35.18 11.093 44.207 464.472 480.520 128.750 351.770 194.477

  OIL GAS       P.W. % P.W., M$
  --------- ---------       ------ --------
GROSS WELLS 0.0 1.0   LIFE, YRS. 33.92 5.00 252.271
GROSS ULT., MB & MMF 8.970 1074.515   DISCOUNT % 10.00 9.00 203.994
GROSS CUM., MB & MMF 0.000 0.000   UNDISCOUNTED PAYOUT, YRS. 1.31 10.00 194.477
GROSS RES., MB & MMF 8.970 1074.515   DISCOUNTED PAYOUT, YRS. 1.36 15.00 156.785
NET RES., MB & MMF 1.794 203.277   UNDISCOUNTED NET/INVEST. 3.73 20.00 130.079
NET REVENUE, M$ 80.650 630.281   DISCOUNTED NET/INVEST. 2.60 25.00 110.024
INITIAL PRICE, $ 44.955 3.101   RATE-OF-RETURN, PCT. 90.00 35.00 81.666
INITIAL N.I., PCT. 20.000 20.000   INITIAL W.I., PCT. 25.000 50.00 54.932
            70.00 33.462
            90.00 19.976
               
             

Table 6 Summary Cash Flow Forecast, Proved Undeveloped Reserves

TOTAL PROVED UNDEVELOPED DATE : 02/26/2018
KOKOPELLI FIELD TIME : 14:45:54
GARFIELD COUNTY, COLORADO DBS : Dejour_YE2017
TO THE INTERESTS OF DEJOUR ENERGY SETTINGS : Dejour
  SCENARIO : Dejour flat

R E S E R V E S A N D E C O N O M I C S

EFF DATE: 01/2018
PW DATE: 01/2018

--END-- GROSS OIL GROSS GAS GROSS NGL NET OIL NET GAS NET NGL NET OIL NET GAS NET NGL TOTAL
MO-YEAR PRODUCTION PRODUCTION PRODUCTION  PRODUCTION  PRODUCTION  PRODUCTION  REVENUE REVENUE REVENUE REVENUE
------- ---MBBLS---   ----MMCF---   ---MBBLS---   ---MBBLS--   ----MMCF--   ---MBBLS--   ---M$--- ---M$--- ---M$--- ----M$---
                     
12-2018 50.817 6087.375 233.007 10.163 1151.609 46.601 456.898 3570.691 1639.297 5666.889
12-2019 129.523 15515.408 593.885 25.905 2935.204 118.777 1164.536 9100.924 4178.219 14443.682
12-2020 138.621 16605.336 635.604 27.724 3141.395 127.121 1246.342 9740.243 4471.729 15458.315
12-2021 88.459 10596.429 405.600 17.692 2004.630 81.120 795.332 6215.578 2853.560 9864.468
12-2022 66.484 7964.086 304.842 13.297 1506.646 60.968 597.758 4671.517 2144.686 7413.961
                     
12-2023 54.602 6540.689 250.359 10.920 1237.367 50.072 490.923 3836.593 1761.373 6088.895
12-2024 46.888 5616.728 214.992 9.378 1062.572 42.998 421.573 3294.623 1512.554 5228.753
12-2025 41.392 4958.282 189.789 8.278 938.008 37.958 372.153 2908.397 1335.239 4615.788
12-2026 37.238 4460.725 170.744 7.448 843.880 34.149 334.808 2616.544 1201.249 4152.599
12-2027 33.969 4069.116 155.754 6.794 769.795 31.151 305.415 2386.835 1095.791 3788.041
                     
12-2028 31.317 3751.468 143.595 6.263 709.703 28.719 281.573 2200.510 1010.251 3492.336
12-2029 29.116 3487.753 133.501 5.823 659.813 26.700 261.779 2045.823 939.233 3246.834
12-2030 27.254 3264.718 124.964 5.451 617.620 24.993 245.039 1914.996 879.172 3039.208
12-2031 25.655 3073.216 117.634 5.131 581.391 23.527 230.666 1802.668 827.601 2860.933
12-2032 24.307 2911.698 111.451 4.861 550.835 22.290 218.543 1707.924 784.105 2710.570
                     
S TOT 825.642 98903.031 3785.721 165.128 18710.469 757.144 7423.338 58013.863 26634.059 92071.273
                     
AFTER 349.450 41860.371 1602.294 69.890 7919.147 320.459 3141.904 24554.176 11272.777 38968.863
                     
TOTAL 1175.093 140763.406 5388.015 235.019 26629.615 1077.603 10565.243 82568.039 37906.836 131040.133

--END-- NET OIL NET GAS NET NGL SEVERANCE AD VALOREM NET OPER OPERATING EQUITY UNDISC NET DISC NET
MO-YEAR PRICE PRICE PRICE TAXES TAXES EXPENSES CASH FLOW  INVESTMENT  CASH FLOW CASH FLOW
------- ---M$--- ---M$--- ---M$--- -----M$---- -----M$---- ----M$---- ----M$---- ----M$---- -----M$---- -----M$----
                     
12-2018 44.95 3.10 35.18 62.846 250.444 1210.510 4143.088 19687.500 -15544.414 -14790.343
12-2019 44.95 3.10 35.18 160.180 637.503 3340.264 10305.725 15625.000 -5319.271 -4669.978
12-2020 44.95 3.10 35.18 171.433 682.526 3892.769 10711.575 5625.000 5086.575 3846.666
12-2021 44.95 3.10 35.18 109.397 435.542 2912.680 6406.850 0.000 6406.850 4589.550
12-2022 44.95 3.10 35.18 82.221 327.340 2462.481 4541.923 0.000 4541.923 2957.829
                     
12-2023 44.95 3.10 35.18 67.526 268.835 2219.041 3533.489 0.000 3533.489 2091.915
12-2024 44.95 3.10 35.18 57.987 230.858 2061.015 2878.888 0.000 2878.888 1549.432
12-2025 44.95 3.10 35.18 51.189 203.795 1948.404 2412.400 0.000 2412.400 1180.333
12-2026 44.95 3.10 35.18 46.052 183.345 1863.308 2059.895 0.000 2059.895 916.236
12-2027 44.95 3.10 35.18 42.009 167.249 1796.332 1782.451 0.000 1782.451 720.754
                     
12-2028 44.95 3.10 35.18 38.730 154.193 1742.005 1557.406 0.000 1557.406 572.504
12-2029 44.95 3.10 35.18 36.007 143.354 1696.902 1370.571 0.000 1370.571 458.021
12-2030 44.95 3.10 35.18 33.705 134.187 1658.758 1212.558 0.000 1212.558 368.378
12-2031 44.95 3.10 35.18 31.728 126.316 1626.006 1076.885 0.000 1076.885 297.418
12-2032 44.95 3.10 35.18 30.060 119.677 1598.381 962.452 0.000 962.452 241.649
                     
S TOT 44.95 3.10 35.18 1021.070 4065.163 32028.859 54956.160 40937.500 14018.660 330.366
                     
AFTER 44.95 3.10 35.18 432.165 1720.535 28818.686 7997.475 491.250 7506.225 1132.351
                     
TOTAL 44.95 3.10 35.18 1453.235 5785.698 60847.543 62953.637 41428.754 21524.885 1462.716

  OIL GAS       P.W. % P.W., M$
  --------- ---------       ------ --------
GROSS WELLS 0.0 131.0   LIFE, YRS. 35.83 5.00 8504.717
GROSS ULT., MB & MMF 1175.093 140763.406   DISCOUNT % 10.00 9.00 2583.066
GROSS CUM., MB & MMF 0.000 0.000   UNDISCOUNTED PAYOUT, YRS. 6.45 10.00 1462.713
GROSS RES., MB & MMF 1175.093 140763.406   DISCOUNTED PAYOUT, YRS. 13.70 15.00 -2764.967
NET RES., MB & MMF 235.019 26629.615   UNDISCOUNTED NET/INVEST. 1.52 20.00 -5495.125
NET REVENUE, M$ 10565.244 82568.055   DISCOUNTED NET/INVEST. 1.04 25.00 -7347.006
INITIAL PRICE, $ 44.955 3.101   RATE-OF-RETURN, PCT. 11.73 35.00 -9573.115
INITIAL N.I., PCT. 20.000 20.000   INITIAL W.I., PCT. 25.000 50.00 -11089.390
            70.00 -11719.011
            90.00 -11737.975