USA Superior: Bateman Range of 55,000 to 65,000 bbls in 2008
USA Superior Energy Holdings, Inc. announced the completion of its probable reserve studies for its Bateman and Benton Fields. Mr. Rowland Carey announced: "Based upon our success in the start up of the Bateman Field, we have just completed our revised 2008 budgets to conform to our increased focus on Bateman and our probable reserve valuation study. Additionally, last week we commenced providing quarterly and monthly results on oil production. As a result, we wanted to provide production and revenue guidance for all of 2008. While our 2008 operating plan is predicated on the necessary capital increases into the company in May 2008, our plan includes all capital and operational expenditures necessary to bring up Bateman production as rapidly as operationally possible, such that the Benton field is prepared in the last half of 2008 for a first quarter of 2009 start up. With our focus on accelerating Bateman during 2008, the range of production in the Bateman field for all 2008 is estimated between 55,000 to 65,000 of net production of barrels of oil after royalties. Utilizing our conservative probable reserve net present value sales price of $85 (current short term prices being realized by the company are higher), net revenues should range between approximately $4.5 and $5.5 million."
Mr. Carey further stated, "While this guidance assumes we gain the continued access to capital necessary to maintain our business plan at an operational pace, as we have previously announced, the start up of the Bateman field has been exceeding our expectations. As you can see from the operational plan above, we believe our focus on the accelerated program in the Bateman field for the balance of 2008 will provide substantial shareholder value increase. Our last disclosed sales were at approximately $91 net to the Company and oil prices have increased. Hence, while only the markets will tell us month by month, for the balance of 2008, it is highly likely that our $85 assumption could be low."
The Bateman Field is in Caldwell and Bastrop Counties in Texas, has approximately 88 existing wells on 1,200 acres and is typical of the Company's core focus of field prospects with a shallow field depth of 2,600 feet that has been basically abandoned when economic conditions and older technology did not warrant further investment. As we complete rework and stimulation on the existing wells and commence drilling on the balance of the field, the Company expects the total number of wells in production to increase. We expect to have approximately 111 (103 in 2008 = 15 drills in 2008 + 88 total) producing wells by end of 2009 without additional leases or technology which the Company may utilize to maximize stimulation of this field.