ex-10_11.htm - Generated by SEC Publisher for SEC Filing
















 
















 
















 
















 
















 
















 
















 
















 
















 
















 
















 










								
	
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




 





 










								
	
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