COLDWELL BANKER COMMERICAL GEORGE REALTY $8,800,000.00 FIRST OIL & GAS FIELD COALINGA WESTSIDE FIELD 1. FIELD LOCATION: Coalinga Westside Field, a part of the Coalinga Field, is located approximately 1 mile west of the city of Coalinga, California. The city of Coalinga had a population of approximately 7,000, which is an oilfield town with schools and stores as well as abundance supply of oilfield equipment, tools and technical & operational personnel. Coalinga Field is located in the north, west and south of the city, and is the 3 rd largest oilfield in California. 2. LEASE STATUS AND SIZE OF THE FIELD: The size of the Coalinga Westside Field for the First Oil & Gas Inc. is approximately 1,327.25 Acres, which consisted of 3 leases and 1 fee properties (Figure 1). The official location, size, and royalties are summarized as follows:
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COLDWELL BANKER COMMERICAL GEORGE REALTY
$8,800,000.00
FIRST OIL & GAS FIELD
COALINGA WESTSIDE FIELD
1. FIELD LOCATION:
Coalinga Westside Field, a part of the Coalinga Field, is located approximately 1 mile west
of the city of Coalinga, California. The city of Coalinga had a population of approximately
7,000, which is an oilfield town with schools and stores as well as abundance supply of
oilfield equipment, tools and technical & operational personnel. Coalinga Field is located
in the north, west and south of the city, and is the 3rd
largest oilfield in California.
2. LEASE STATUS AND SIZE OF THE FIELD:
The size of the Coalinga Westside Field for the First Oil & Gas Inc. is approximately
1,327.25 Acres, which consisted of 3 leases and 1 fee properties (Figure 1).
The official location, size, and royalties are summarized as follows:
LOCATION ACREAGE ROYALTY STATUS
Section 1 T21S R14E except NE ¼ 1,042.00 18.29% Lease
T21S R14E W ½ NW ¼ NE ¼
Section 35 T20S R14E except
SW ¼ SE ¼
Section2 T21S R14E NE ¼ 105.25 16.50% Lease
Section1 T21S R14E NE ¼ 140.00 18.29% Lease
Except W ½ NW ¼ NE ¼
Section 35 T20S R14E SW ¼ SE ¼ 40.00 4.00% Fee
Total: 1,327.25 Acres
3. NUMBER OF WELLS:
NUMBER
Oil Wells 37
Gas Wells 1
Fresh Water Wells (for cattle) 2
Total 40
4. OIL PRODUCTION:
OIL API GRAVITY GAS
Section 1 1-20 B/D 13.5-15.0
Section 2 1-4 17.0
Section 35 0-2 17.0 200 MCFD
(potential)
5. CURRENT PRODUCTION & INCOME:
(1) Section 1:
In Section 1, the oil production has been made from following three (3) wells, after the well
work in January, 2008:
Well #1-1
Well #1-3
Well #1-4
These wells are shown in the oil contour map with oil thickness of 40-50 feet (Figure 2).
Following shipments were made since January, 2008:
Date of Oil Shipment Amount of Oil Sale Price Gross Income
April 20, 2008 331.21 barrels $98.647 $32,663.99
June 29, 2008 157.39 barrels $118.965 $18,723.90
July 26, 2008 103.64 barrels $118.67 $12,299.17
Oct 20, 2008 147.55 barrels $61.7289 $9,107.97
Nov 24 2008 171.80 barrels $43.6289 $7,495.29
April 7, 2009 328.42 barrels $41.9540 $13,778.53
Sep 19, 2009 166.71 barrels $54.5570 $9,095.20
Oct 20, 2009 154.99 barrels $59.1200 $9,163.63
Total 1396.74 barrels $74.6589 $112,327.68
From these shipments, it shows that the oil production has been very stable since the well
work in January, 2008. The annual oil production would be 1,240 barrels from April 2008
to April 2009, which is about 3.4 Barrels per day. At the crude forecast price of $88 per
barrel for next year, its annual gross income would be approximately $109,120.
(2) Section 2:
The Section 2 oil is produced from the flowing wells, and its API gravity is 17o , which had
a better price than Section 1. With $88 per barrel price for Section 1, the Section 2 price
would be approximately $90 per barrel.
The Section 2 production was 171.8 barrels from above table.
(3) Section 35:
The Section 35 is currently shutdown without production, because it requires two
production tanks. With these tanks, the production would be approximately 176 barrels at
a gross income of $15,488 based upon previous production mode.
6. PRODUCTION FORECAST – NEAR TERM:
There are 3-5 wells, which could be worked-over with an estimated production of 4.5
barrels per day, or $144,540 additional gross income..
With this additional production, the total forecast oil production at $88/barrel price would