Bering has successfully drilled its first well on its South Texas prospect which has potential gross reserves of 5,000,000 barrels of oil and 46 BCF of natural gas. The initial well was drilled to a total depth of approximately 10,000 feet to test the Oligocene Frio trend. The company expects to announce the results of the electric log, which will indicate which zones are productive, within the next few weeks. Bering's interest is a 5% working interest after pay out in this prospect.
Based upon the estimates by the originating geologist, it is estimated that this prospect could have potential reserves of 5,000,000 barrels of oil and 46 BCF of gas, which equates to a total of $560,000,000 in future gross revenue at today's prices of $81.00 per barrel of oil and $3.35 per Mcf of gas. There is no guarantee that this prospect will be successful or that these numbers will be achieved due to production and/or price fluctuations. Bering's net revenue interest would equate to approximately 4% of the gross revenue and production figures discussed in this release, or approximately $22M.
"The successful drilling of this well is a crucial step in realizing revenues from this project," stated Steven Plumb, VP of Finance of Bering. "We are looking forward to adding additional projects in order to increase shareholder value."
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