Loudon's current net daily production from the Properties is 7.6 million cubic feet of natural gas per day and 176 barrels of condensate per day. Loudon has identified a sizeable inventory of remaining Proved recompletion and development projects that are estimated to substantially increase production and cash flow over the next several years.
LaRoche Petroleum Consultants, Ltd. (Dallas, TX) has prepared an independent evaluation of the Properties. LaRoche estimates Loudon's net remaining total Proved reserves to be approximately 14.1 billion cubic feet of natural gas and 129 thousand barrels of oil, with an average gross daily rate of 15.9 million cubic feet equivalent per day in 2005. The total Proved PV-10 of the properties based on the LaRoche estimates is $43.2 million, assuming a recent 4-year NYMEX strip.
ESA will be hosting a data room in Dallas beginning in late October. Loudon intends to close the transaction on or about December 16, 2004, with an effective date of November 1, 2004. Interested parties are requested to contact Charlie Lapeyre (214) 987-6123 or Kyle Miller (214) 987-6125 at ESA with inquiries.
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