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SCHEDULE B                     ESTIMATED DRILLING COST /     SOUTH SUN RIVER  
AFE     DATE 6/30/2013             FIELD /     WELL NAME Norstra #1       AREA
Development   WELL LOCATION         TARGET Bakken Shale   COUNTY Lewis & Clark  
EST DEPTH 8,500 TVD,12,500' MD STATE MT       COMMENT       INTANGIBLE COSTS:
DAYS   $ / DAY   DRY CASED COMPLETED Permits         400.00 400.00 400.00 Legal
& Title         2500.00 2500.00 2500.00 Survey Location         2000.00 2000.00
2000.00 Land Damages / right of way         5000.00 5000.00 5000.00 Rig Daywork
(7-9 Set 7" / 3-5 HZ) 25 $ 16,500.00   412500.00 412500.00 412500.00 Limited
Turnkey               Footage               Rig mobilization -de mobilization  
      190000.00 190000.00 190000.00 Location/pits         60000.00 60000.00
60000.00 Roads & Maintenance               Rig fuel / boilers 14 $ 1,500.00  
21000.00 21000.00 21000.00 Compressor               Water 25 $ 1,500.00  
37500.00 37500.00 37500.00 Mud / Chem         190000.00 190000.00 190000.00 Salt
              Cement surface         25000.00 25000.00 25000.00 Cement
Intermediate Casing / P&A   7000 @25.00   175000.00 175000.00 Floating equipment
        1400.00 3000.00 3000.00 Bits / downhole assembly         80000.00
80000.00 80000.00 DST               Core         65000.00 65000.00 65000.00 Mud
logger / Pason 15 $ 22,000.00   330000.00 330000.00 330000.00 Electric logging  
      70000.00 100000.00 100000.00 Inspect collars & casing              
Equipment rental         26000.00 26000.00 26000.00 Trucking drilling        
10000.00 10000.00 10000.00 Trucking completion         10000.00 10000.00
15000.00 Completion rig             75000.00 Perforate & Cased Hole Log
(slotting               casing)           15000.00 15000.00 Bonding        
10000.00 10000.00 10000.00 Overhead 14 $ 900.00   12600.00 12600.00 12600.00
Insurance         2500.00 2500.00 2500.00 Welder / backhoe         2500.00
2500.00 4000.00 Flowline Construction & ROW             20000.00 Tank Battery
Construction             60000.00 Professional Services Engineer        
19000.00 19000.00 25000.00 Professional Services Geologist         10500.00
10500.00 10500.00

 

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Directional Services 12   $ 11,000.00 132000.00 132000.00 132000.00 Cleanup and
restoration         7500.00 7500.00 7500.00 Multi stage frac            
1300000.00 Miscellaneous/contingency 5 %     86745.00 97825.00 171200.00 TOTAL
INTANGIBLE COSTS         1,821,645.00 2,054,325.00 3,595,200.00

 

EQUIPMENT COSTS           DRY CASED   COMPLETED   DIA   FEET   $/FT         PIPE
/ Conductor                   Surface 9 5/8   500 $ 26.62 13310.00 13310.00  
13310.00 Production 7   7000 $ 25.00   175000.00   175000.00 Liner 4.5   5000 $
10.79   53950.00   53950.00 Tubing 2 7/8   7200 $ 8.00       57600.00 Wellheads
          500.00 50000.00   50000.00 Packer/anchors             24000.00  
24000.00 Downhole pump                 2500.00 Rods                 6000.00
Pumping Unit & Motor                 45000.00 Tanks                 55000.00
Treator                 45000.00 Separator                   Gas shack & meter
run                   Flow & gatering lines                 22000.00 Risers,
reducers                 10000.00 Valves, pipes & fittings                
10000.00 Buildings                 5000.00 Miscellaneous/contingency 6 %      
828.60 18975.60   34161.60   TOTAL TANGIBLE COSTS           14,638.60 335,235.60
  608,521.60   TOTAL WELL COSTS           1,836,283.60 2,389,560.60  
4,203,721.60                 PARTCIPATION           WORKING INTEREST PARTNER %  
Cost Dry Hole                   $                   1,836,283.60              
100.00 % Cost / Cased Hole                   $                   2,389,560.60  
                Cost / Completed                   Well                   $    
      Partner Signature       4,203,721.60

 

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