Cuervo Resources Inc CRVNF

Find/Burmis Takeout my Guess

[leakeybill]

So far in the Find/Burmis Blue Rapids play Burmis has participated in 21 wells, 4.7 net. This equates to about a 23% working interest. Now based on first quater drilling of which Burmis had 5 locations they suggest find would drill, Now they are deciding to expand the blue rapids gas plant for an additional 20mmcf day. In this area they get on average 50boe day of liquids for every 1mmcf so add about another 1000 boe a day for liquids. If Burmis mantains its 15% ownership then expect (20 *.15) + 150boe a day of liquids. That equates to about 650 boe a day. Now the wells they are drilling with find they on average have a 23 percent working interest in so depending on which wells are producing at a given point in time, i expect that this production number could be higher. They likely have a contract that suggests it will not be lower then 15%. This means Find will be producing at least another 2600 boe based on a minium average of 60% of the production. However I am sure that find will exceed the 60% number as well. In 6 months burmis will be over 3000 boe and find will likely be north of 8000 boe. Together simply from blue rapids and assuming they have other partners they will be producing 50mmcf *.75 + 2500 *.75 = 37.5 mmcf gas + 1875 liquids = 8125 boe day from simply one play, looks like a take out to me.