AUTHORITY FOR EXPENDITURE

Date: Lease / Well Number:

Prepared By: Location:
Prospect Name:
County, State:
Projected Total Depth: 12900' (8,375' TVD, no pilot hole) Primary Objectives:
*NOTES*
Daywork Contract - Horiz. Oil Well - Closed-Loop Mud System - ESP It is recognized that the amounts provided here are estimates only and
Single Sand Completion (Multi Stage Frac w/ Packers Plus Tools approval of this authorization shall extend to actual costs incurred in
Assumes regulatory agent approves casing program conducting the operations specified, whether more or less than
*Note* all pipe prices may be subject to increase due to market fluctuations. estimated.
920-000 Intan. Drilling Costs BCP COSTS 924-000 Intan. Comp. Costs ACP COSTS
951-000 Abandonment & Cleanup $ 30,000 951-000 Abandonment & Cleanup $ (30,000)
920-009 Abstracts & Title Opinions $ - 921-003 Daywork Days: 2 $/Day: 17000 $ 34,000
920-009 Well Control Insurance 12900' $/Ft: 1.539 $ 19,853 921-003 Rig Fuel Days: 2 $/Day: 3500 $ 7,000
921-000 Legal, Permits & Fees $ 6,500 924-008 Drilling Rig Supervision Days: 2 $/Day: 650 $ 1,300
921-000 Staking Location & Surveys $ 1,250 924-004 Production Casing Crews $ 10,000
921-001 Location, Road & ROW $ 75,000 924-004 Production Casing Cement & Services $
921-003 IDC Daywork Days: 40 $/Day: 17000 $ 680,000 924-004 Prod. Float Equipment & Centralizers $
921-003 Mobilization $ 100,000 924-001 Completion / Swab Unit Days: 10 $/Day: 2500 $ 25,000
921-003 Rig Fuel Days: 40 $/Day: 3500 $ 140,000 924-008 Compl. Rig Supervision Days: 10 $/Day: 650 $ 6,500
921-004 Lay Down Machine 3.5" & 4.5" drill pipe, collars $ 12,000 924-008 Administrative Services $ 5,133
922-001 Supervision Days: 40 $/Day: 650 $ 26,000 924-003 Mud & Chemicals $ 5,000
922-001 Drilling Overhead (Administrative Services) $ 9,333 924-003 Water Hauling $ 50,000
922-004 Bits & Reamers $ 57,500 924-005 Logging, Perforations & Wireline $
922-000 Rentals Surface $ 144,590 924-006 Rentals Subsurface $ 5,000
922-000 Rentals Sub-Surface $ 22,000 924-006 Rentals Surface $ 40,000
922-000 Drill Pipe / Motors Days: 19 $/Day: 4720 $ 89,680 924-006 Nitrogen Service & Coiled Tubing $ 55,000
922-000 Directional Drilling Expense $ 167,780 924-006 Fishing $ -
921-008 Inspection - Drill String $ 5,000 924-007 Stimulation $ 950,000
921-008 Well Control & Testing $ 6,000 924-007 Transportation $ 20,000
921-008 Miscellaneous IDC $ 10,000 924-009 Contract Labor & Roustabout $ 15,000
921-006 Mud Logging Days: 30 $/Day: 1054 $ 31,625 925-001 Bits & Reamers $ 2,500
922-003 Contract Labor $ 10,000 925-001 Couplings & Fittings $ 9,500
922-002 Transportation $ 18,500 925-003 Location & Road Expense, Frac Pond $ 30,000
921-004 Surface Casing Crews $ 4,000 925-003 Miscellaneous IDC $ 15,000
921-004 Surface Cement and Cement Services $ 18,000 925-003 Pipe Inspection & Recondition $ 9,000
921-004 Surface Float Equipment & Centralizers $ 1,500 925-003 Pumping Services (Kill Truck) $ 10,000
921-007 Intermediate Casing Crews $ 15,000 925-003 Testing $ 5,000
921-007 Intermediate Cement and Cement Services $ 50,000 925-003 Well Control Insurance Days: 10 $/Day: 350 $ 3,500
921-007 Intermediate Float Equipment & Centralizers $ 9,500 Contingency (5%) $ 64,172
921-005 Mud & Additives $ 85,000 TOTAL $ 1,347,605
921-011 Corrosion Control & Chem. $ 8,000 930-000 Tangible Well Equipment ACP COSTS
921-010 Water $ 50,000 930-003 Prod. Csg / Liners 4-1/2 " $/Ft: 13 Feet: 4500 $ 58,500
921-010 Water / Mud Disposal $ 90,000 " $/Ft: Feet: $ -
Contingency (5%) $ 199,361 930-004 Tubing 2-7/8 " $/Ft: 6 Feet: 7900 $ 48,980
TOTAL $ 2,192,973 930-009 Wellhead $ 2,500
923-000 Intan. Formation Testing BCP COSTS 941-000 Installation Costs - Electricity $ 20,000
923-003 Wireline Gyro $ 15,000 931-000 Subsurface Equipment, Packer Plus, ESP $ 500,000
923-003 Drill Stem - Formation Tests $ - Contingency (10%) $ 31,499
923-001 Coring & Analysis (Sidewall Cores) $ - TOTAL EQUIPMENT $ 661,479
Contingency (5%) $ 750 940-000 Tangible Lease & Battery Equipment ACP COSTS
TOTAL $ 15,750 940-001 Pumping Units & Engines $ -
930-000 Tangible Lease & Well Equipment BCP COSTS 940-002 Gas Processing & Dehy $ -
930-001 Surface Casing 13-3/8 " $/Ft: 34 Feet: 800 $ 27,200 940-002 Heaters, Treaters & Separators $ 15,000
930-002 Intermediate Csg 9-5/8 " $/Ft: 26 Feet: 2225 $ 57,850 940-005 Tanks & Accessory Equipment $ 85,000
930-002 Intermediate Csg 7 " $/Ft: 26 Feet: 8750 $ 227,500 941-001 Pipeline $
941-001 Flowline $ 2,000
930-009 Wellhead $ 9,000 941-001 Controllable Valves $ 10,000
931-003 Cattle Guards $ 941-001 Misc. Controllable Equipment $ 10,000
Contingency (5%) $ 16,078 Contingency (5%) $ 6,100
TOTAL EQUIPMENT $ 337,628 TOTAL EQUIPMENT $ 128,100

TOTAL DRILLING $ 2,546,350 TOTAL COMPLETION $ 2,137,184

TOTAL INTANGIBLE $ 3,556,328 TOTAL TANGIBLE $ 1,127,207

Joint Interest Approval

Company: TOTAL DRY HOLE COST $ 2,590,765
TOTAL WELL COST $ 4,683,534
By: __________________ Date: ______________ By: