
CORPORATE SALE
Rocky Mountain
Producing Properties and
Non-Producing Leasehold
Working Interests and Overriding Royalty Interests
Colorado, Nevada, Utah and Wyoming
COMPANY
- Independent, pink sheet Utah corporation organized in 1980
- Headquartered in Salt Lake City
- Operations focused on acquisition and exploration of oil and gas
properties in Colorado, Nevada, Utah and Wyoming
- Substantial cash on hand
- No financial or environmental liabilities
- Primary value of company in extensive lease inventory
- >$1MM net annual cash flow mainly from ORRI properties
- Audited financials available through March 31, 2008
COLORADO
- Overriding royalty interests in active Piceance Basin units
- Large number of drilling locations left within units
- Hunter Mesa Unit, Grass Mesa Unit and unit offset wells
- $67,000 average net monthly cash flow (projected 8/2008)
- Antero actively drilling on non-unit overriding royalty acreage
- Net monthly cash flow increasing at a rapid rate
- $28,000 net monthly cash flow (actual 4/2008)
- Miscellaneous leasehold and overriding royalty interests
NEVADA
- ~19,750 gross acres / ~8,400 net company acres
- Yankee Mine West Prospect - White Pine County
- ~7,600 gross acres located on a large anticline
- 25% carried working interest to casing point election
- Terralliance has permitted 11,000 foot Guilmette well
- Abel Springs Prospect
- Located in the Railroad Valley area
- Additional prospects in place
UTAH
- ~666,600 gross acres / ~282,000 net company acres
- Central Overthrust Trend
- ~312,800 gross acres / 11,000 net company acres
- Discovery of Covenant Field and new Mayfield discovery
validates significant potential
- Acreage position covers significant portion of numerous
prospective structures indicated by geochemical anomalies
- Southern Overthrust Trend
- ~243,400 gross acres / ~163,800 net acres
- Potentially productive thrust related structures
- Two producing wells
- Operated well in South Pine Ridge Field - San Juan County
- $22,800 average net monthly cash flow (projected 8/2008)
- Overpressured Western Uinta Basin Prospect
- ~27,200 gross acres / ~27,200 net company acres
- Multiple shallow and deep oil and gas targets
- Seismic, geochemical and gravity available
- Non-producing overriding royalty and royalty acreage
- Additional ~400,000 gross acres in numerous counties
- Drilling activity planned or ongoing on some acreage blocks
- Majority of acreage reverts back to seller if not drilled
- Miscellaneous leasehold, minerals and overriding royalty interests
WYOMING
- ~12,350 gross acres / ~4,450 net company acres
- Emigrant Gap Prospect - Natrona County
- ~2,300 gross acres / ~2,300 net company acres
- Similar geologic history as Winkleman Dome oil field
- Surface anticline with Tensleep Sandstone objective
- Seller permitted 4,000 foot Amsden well January, 2008
- Operated producing Dakota well - Crook County
- $23,000 average net monthly cash flow (projected 8/2008)
- ORRI in Atlantic Rim CBM wells drilled by Anadarko, et al
- Miscellaneous leasehold, minerals and overriding royalty interests
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