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MACHIN & ASSOCIATES, INC .
BID DEADLINE EXTENDED TO FRIDAY, OCTOBER
31ST, 2008
Rusk and Gregg County, Texas
West Danville Field (Pettit, Rodessa, Travis
Peak, Cotton Valley, Haynesville)
Haynesville Potential - 25 BCF with a PV(10)
of $31.5 MM using 2.5 BCF per location
1,168.9 Gross and Net Acres
78.67% Operated WI and 59% NRI
All properties are operated by Machin & Associates, Inc.
Three (3) active producing wells
330 MCFD and 16 BOPD Gross (193 MCFD, 9 BOPD
Net)
Multiple Pays in Cotton Valley, Travis Peak, and Haynesville Shale
$122,000/month of cash flow to the 100% ($95,977/month
to the selling interest)
Undeveloped Locations: Multiple Potential
Undeveloped to Pettit, Travis Peak,
Locations in Cotton Valley Sands and Haynesville Shale
PDP Reserves of 746.8 MMCF and 48.2 MBO with
a PV(10) of $3.8MM
Total Net Proved Reserves of 6.2 BCF, with
a Net PV(10) of $9.6 MM
Probable Reserves of 6.3 BCF, with a Net
PV(10) of $6.6 MM
Possible Reserves of 7.0 BCF, with a Net
PV(10) of $7.4 MM
Total Property Reserves of 19.6 BCF, with
a Net PV(10) of $23.6 MM
This Property offers an attractive combination
of (a) established production (Pettit and Travis Peak),
(b) development drilling (Travis Peak and Cotton Valley), and (c)
high impact upside potential (Haynesville Shale)
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