Hey Curtis! More to sink your teeth (gums) into!
Since you show very little inclinatin to post much other than hash-ups of whatever the Mama Crows over at the REV headquarters push into your open beak, here is a little something that should have you crowing good things about the Delhi Field for whole days to come! Just think of it! More than half of all that oil is thought to still be in the ground! (as of 2006, that is)
Cheers and happy reading! LOL, and then we will wait for one of you astute investors to look up the Denbury production reports to see how much all that fracking with all that CO2 and all those many millions spent got them from the Delhi Filed! Are REV and 4J going to be spending that kind of green?By the way, has REV acknowledged what % of the payout they get to keep? Not the same as owning a percentage, by the way.(colored editsare mine)
"HOUSTON, May 9 /PRNewswire-FirstCall/ -- Natural Gas Systems, Inc.today announced that it has entered into a definitive agreement withDenbury Resources, Inc. to conduct an enhanced oil recovery project inthe Delhi Holt Bryant Unit within the Delhi Field in northeast Louisiana(the "Delhi Unit"). NGSY will contribute its working interest in theDelhi Unit and Denbury will contribute all development capital,technical expertise and required amounts of proven reserves of carbondioxide ("CO2") that will be injected into the oil reservoirs.(not the same as nitrogen, but still a requirement, eh Curtis?) Sinceits discovery in 1945, the Delhi Unit has produced approximately 190million barrels of oil, which NGS estimates to be less than half of theoriginal oil in place in the targeted reservoirs.
(3114754 bbl oil)
The principalterms of the agreement call for NGS to receive $50 million at closing, (wow! This must represent the REAL cost of getting into the oil business, not a mere $250k?)subject to adjustments, if any, following normal due diligenceinspections. NGS will deliver to Denbury an initial 100% workinginterest and 80% net revenue interest in the Delhi Unit, while retaininga separate 4.8% royalty interest within the Delhi Unit and a 25%working interest in other depths.(this oil revenue stuff gets real complicated, real quick, doesn't it?)After the project generates $200million of net cash flows before capital expenditures, NGS will regain a25% working interest (20% net revenue interest) in the Delhi Unit.
Denbury has estimated that its capital expenditures in the overallproject will likely reach or exceed $200 million and that potentialreserves are estimated to range between 30 and 40 million barrels ofoil, net to Denbury's interests.(as of 2006, folks) NGS estimates the potential oilrecovery from the project may range from 9 million to 14 million barrelsof oil over the project life,(this shows the reality of how much oil may be in the ground vs how much oil can be recovered even after VERY expensive rejuvenation attempts) net to NGS's interests and at no capitalcost to NGS.
Robert Herlin, President of NGS, stated "This agreement is a majordevelopment for NGS and its shareholders and demonstrates the value inour business model of re-developing mature oil and gas fields usingmodern technology and capital.(Oooh,LOTS of capital! You mean they didn't just drill a new hole and throw some cookbook geophysics at it?) We believe that our reversionary andoverriding royalty interests will generate substantial value and netreserves for NGS and its shareholders with minimal or no capital risk,while allowing redeployment of the cash proceeds to other attractiveprojects." (Hmm? This sound familiar to anyone?)
Natural Gas Systems, Inc. (https://www.natgas.us/)acquires and develops oil and gas resources and applies conventional andspecialized technology to accelerate production and develop incrementalreserves. NGS owns a 100% working interest in the 13,636 (out of the total 13,590-acres discovered in 1945). acre DelhiField in northeastern Louisiana and a 100% working interest in smallerfields in north central Louisiana. The Company is further developingtwo projects in central Texas and certain proprietary technology for oilfield development. (They got sucked into the KX-xxx thing too?)"
From:
https://www.redorbit.com/news/science/496910/natural_gas_systems_announces_agreement_to_sell_interest_in_delhi/
Yep, REV certainly is positioning to be a major player in the older, more mature oil fields of Louisiana!