Visions of royalty checks dancing in my head :)

What I heard from Medallion is: Pipeline is completed and Mitchell No. 1-32 is tied in with a meter set. This gas has to be processed (which will impact revenue stream) and they are trying to get the processing equipment online, which they hope to do by this Friday (July 13).

Depending on what they are processing, sometimes if the gas just has nasty things in it like sulphur or watery sludge, it has to be cleaned up so it can make the standard to be introduced into a pipeline. Sometimes they remove actual heavy weight hydrocarbons, which when extracted and sold have a value that is aligned with oil. Not sure of the nature of what they are removing. It is also possible that the gas could have to be compressed in order to buck the pipeline pressure. There can be quite a few variables.

Divisions Orders, Royalty Payments, etc.:

Enterprise Crude Oil, 210 Park Ave., Suite 1600, Oklahoma City, OK 73102

Phone: (405) 239-7900

Charles,

Thanks for the update. Yes, royalty checks are nice. You never know Charles, there might even be some(nasty things) jackrabbits, coyotes, roadrunners or horned toads in the line also and lets don't leave out rattlesnakes and feral hogs. Good luck on your wells. Again thanks for the update.

Clint Liles

Clint or Charles,

Once the main line and processing equipment are in place is relatively easy to connect and run lines to the main trunck line from the other wells and new ones?

Patrick

Yes. They probably already have procured right of way in the area, so you would be talking just a few weeks to get a crew and dig the ditches. And The processing plant once initially on-line is good to go for additional wells – just a small matter of tie in.

Well let’s get these the Wells going! Looking for section 9 1s23w.,

Is there activity in Sec 9 now? I see from the OKCC web site that 3 dry holes have already been drilled there.

After the month of flow, you can expect about a 60 day lag to get the payment processed. They will get paid probably 20 days after the month is over, and you will get paid after that but it tends to drag on. July gas price about 2.70 per MMBtu before transport comes out.

No activity yet but working up that direction. Permits filed for 11 & 14.

Good luck!