67.2
  • June 9, 2022 3:46 am

”Seeking $3 million loan for Denver-based company with 47,500 acres of leases over large shallow oil play in northern Utah. Proceeds will be used to restore one well to production and drill one new well, as well as retire some payables.

Company has conducted extensive geologic and engineering studies that indicate a recoverable resource of over 500 million barrels of oil may exist in the Cretaceous oil play covered by its leases at depths of less than 4,000 feet. Typical wells contain 200-300 feet of oil pay.

Company proposes a three-year term and 8% interest. Company is open to conversion of debt into equity under mutually agreed terms.

Once the two wells are on production, Company plans to drill 107 additional wells at a cost of $87 million. By using cash flow from existing wells, the net capital requirement is reduced to approximately $10 million.”

Overview

  • Category : Prospects / Acreage

Location

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