The Field currently maintains 24 oil wells and 2 gas wells which produce 205 barrels of oil equivalent (BOE) per day that represents a solid 70% increase in production from April-2006 to April-2007. EnDevCo intends to begin its Short Junction horizontal drilling campaign in May to further increase 2007 daily production by approximately 3,500 barrels of oil and 10,000 Mcf of gas. This increased production, with oil priced at $60/bbl and $6 Mcf natural gas prices, would provide EnDevCo with additional gross revenues of $5,750,000 per month.
Short Junction has also dramatically increased the proved reserves the Company can now book on its balance sheet. EnDevCo's proved reserves increased 12,250% from 1.6 million BOE in 2005 to 19.6 million BOE at 2006 year end.
Project financing for the Short Junction Field is being provided by GasRock Capital, LLC of Houston, Texas, in the form of a recently increased credit facility from $30 to $50 million. GasRock Capital provides "project-based financing" to the oil and gas industry by backing proven management teams that identify high quality projects such as EnDevCo's Short Junction Field. Project-based financing, which is difficult to obtain for an emerging company trading on the OTC BB in the United States, has absolutely no negative effect on ENDE's capital (or share) structure.
The previous numbers are strictly summaries, or portions, of the complete audited financials for EnDevCo's fiscal year 2006. The entire 10K-SB is available online, in the EDGAR document retrieval system, via www.edgar-online.com.
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