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Rates Of Return
Marmaton Oil Play
  Economics : Rates of Return/ IRR

Showing 3 Results


Going Vertical Executive Summary The Petro River team is pleased to present a vertical drilling opportunity on our Pearsonia West asset. Vertical Program Highlights Acreage position surrounds and is adjacent to Mississippian fields that have produced in excess of 20+ million of barrels of oil from vertical wells Vertical well EURs range 27,000-65,000 bbls black oil Historical production is structurally controlled 36 miles proprietary modern 3D seismic and twelve undrilled seismically defined structures Seismically defined structures range from 120 to 1000+ acre in closure Stacked productive reservoirs includes Arbuckle, Mississippi Dense, Mississippi Chat, Redfork, Skinner, Marmaton, Cleveland, and Layton Recent production results illustrate the hydrocarbon productivity of the entire Mississippian section Infrastructure in place to support vertical field development Reservoir depths average 3,000 feet with stable drilling environment Vertical wells are 1/10th the cost of a horizontal well Drill and complete costs estimated at approximately 275,000 per vertical Expected internal rates of return, based on base case assumptions, of 20.6% at 45 oil, 46% at 60 oil and 77.9% at 75 oil OTCBB : PTRC www.petroriveroil.com 3
Petro River Oil Corp.
May 2015

Anadarko Basin Strong acreage position of 122,000 net acres (90,000 in Texas and 32,000 in Oklahoma) Consistent results in the Cleveland, with encouraging early results in the Marmaton, Cottage Grove and Tonkawa horizons Primary horizons demonstrate similar and predictable results and provide attractive returns with achievable cost reductions and/or more favorable commodity prices Small reductions in capital costs have a dramatic Cleveland IRRs at Various Prices and D&C costs(1) IRR impact 60% Expanding geological understanding and high 30% Capex 50% Reduction grading locations 40% Reviewing drilling and completion designs to 15% Capex IRR (%) Reduction lower cost and improve returns through 30% learnings from Mississippian Lime development 20% and offset operators 2014 Capex 10% Focus in 2015 is on a highreturn capital and 0% expense workover program, and improving LOE 50/bbl 60/bbl 70/bbl 80/bbl 90/bbl Large inventory of predictable drilling provides solid returns with lower cost or improved prices (1) Gas prices held flat at 3.00/MMBtu NYSE: MPO www.MidstatesPetroleum.com 16
Midstates Petroleum
April 2015

www.nighthawkenergy.com Evolving Type Curves No other Mississippian Spergen producers of the Arikaree Creek type in southeastern Colorado; two years of production history First year flat decline substantially helps ROR Second year decline rate is 60%; expect terminal declines to be in 5-8% range; 15 year lives Snow King wells are now being drilled/completed; assumption is they will produce similar to Arikaree Creek wells Using regional data for Marmaton producers LSE: HAWK 18
Nighthawk Energy Plc
February 2015
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