I am selling 30% of the working interest which covers the 11 wells of the Olin C lease. This lease is a 75% NRI lease (net revenue interest.) There will be 30 units at 1% per unit with a cost of $10,000 per unit.

To get started, I need to sell at least 5 shares ($50,000) or to receive a seed loan for that amount. Another option is to sell 25% of the shares for a significantly discounted lump sum of $150,000.

This investment differs from other oil & gas investments as it is based upon a collection of 11 already drilled wells (Olin C Lease), each having been tested, witnessed and logged by the Louisiana Sate Conservation Department. Four of the wells have pumping units and were produced for a short period of time. The other 7 wells have not been produced. The wells are between 1,500 to 1600 feet deep, and they are drilled within the Saratoga chalk formation.

The average pay zone in the Olin C is 12 ft of Saratoga sands. This reservoir has a very good porosity. The recoverable oil from this stratum is estimated to be at 50 barrels per acre ft with the average well being 12’ of sand at 50 barrels per ft. That gives about 600 barrels of oil per acre of recoverable oil. With just under 200 acres within this lease, that gives us about 120,000 barrels of recoverable oil. At today’s price of $80.00 per barrels, that would be about $9,600,000 of recoverable oil.
We will be using a new invention called an Oil Hound that is mounted on the back of a truck powered by a generator. PGN has purchased A Chevrolet 1 ton truck with dual wheels that has a large Duramax diesel engine with an Allison transmission. Also purchased is a new 7,500 watt Pacific commercial diesel generator to provide the power for the bailing unit.

I feel that I am being conservative in estimating a total of three barrels of oil a day per well, as the logs have shown an average of 9 barrels of oil per day per well. And at 3 barrels a day per well, the return on investment at $85 dollars a barrel would be 1.43 years and close to 1 year at 4 barrels per day per well. There are not that many investment out there with this kind of potential return on investment.

Please visit my website and view the Estimated Cash Flow Statement spreadsheet where you can forecast different outcomes depending on the price per barrel of oil, the percentage of working interest and the barrels of oil per day for each well.

NWEnergyGroup.com

Paul Langelier