Executive Summary

San Juan Basin--Mancos (Niobrara) Dry Gas

Mancos--Unconventional Gas (3 zones)
T30N, R4W, Rio Arriba County, New Mexico

  • 13 BCF EUR per 10,000' Lateral
  • 37% WI, Unit Operations available
  • 98% IRR at $3/mmBtu

General Overview:

San Juan Resources' operated Exploratory Unit in San Juan Basin, 30N 4W, 5,428 gross acres. SJR has 37% of this undivided type Mancos only unit. Huge Mancos potential warrants 32-10,000' laterals planned, half to penetrate the lower Mancos Niobrara Olive interval and half to penetrate the Mancos Niobrara Black interval. These 10,000' laterals have been projected to have 13Bcf per well, similar to the bounding WPX 640H well (10,000' lateral), 9 miles to the west of the Rosa Unit. Directly bounding the 30N 4W unit to the east is a Black Hills horizontal well (Jicarilla 464 #724H) drilled in the Mancos Niobrara--Olive unit, a one mile lateral that has an EUR of 6 Bcf plus. We expect gross reserves on our unit to be 416 Bcf, or 154 Bcf to SJBP interest. Vertical depths to the Mancos 7,900' and we anticipate drilling and completion costs at total field development to be $6mm per well.

Lease Terms:

SJR Fee leases are 2014 paid up 5 yr leases + 5 yr extend option. SJBP Federal Leases are HBP. Summary Leasehold Schedule provided. Delivered NRI -79% - inclusive of contractual obligations.

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