With a 5% Overriding Royalty Interest, the Centurion Property combines more than 17,000 acres of producing oil and gas assets across Texas, Oklahoma, Alabama, Louisiana and Mississippi. There are 160 producing wells on the asset with more than 50 additional proven/undeveloped drilling sites. Current production is comprised of 90% natural gas and 10% oil. Well operators include companies such as Exxon, Kerr-McGee, Hunt Oil, Quicksilver and Vintex.
The addition of 7 new wells follows the recent development of the McMoran well, which has been placed in pay status with more than 40 MM cubic feet of gas per day and $6 M of cash flow per month.
Lewis Dillman, President and Chief Executive Officer of Sun Cal Energy Inc., states: "We are pleased that the drilling program of our Centurion Property has continued to expand. With high activity levels and 15 operators currently drilling on the property, we are beginning to realize cash flows. In addition to the cash flows from our Hobart Prospect and a recent round of financing, our financial condition has continued to strengthen as we continue to expand our operations."
In addition to the new wells, there has been an increase of density spacing. This will result in additional wells being added to the property, thus a further increase in drilling activity and production.
As stated by Lewis Dillman: "We will continue to seek out high impact opportunities in conjunction with major operators and thus source consistent revenue streams or significant developmental upside as we aim to maximize shareholder value."
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