reliance energy wolfberry - iadc west iadc 051811 preso-drw.pdf · reliance energy headquarters:...
TRANSCRIPT
Reliance EnergyHEADQUARTERS:
Reliance Energy, Inc.500 West Illinois AvenueSuite 1200Midland, Texas 79701Phone: 432 683-4816Fax: 432 682-1250www.reimid.com
CONTACTS:
Gary D. McKinney - [email protected]
Denzil R. West - Vice-President Asset [email protected]
J. Michael Party – Vice President [email protected]
B. Jack Reed - Chief Financial [email protected]
Gerald A. Hancock - Vice-President / Special [email protected]
DISCLAIMER - Please Read Carefully
The information contained herein does not represent either investment advice or anoffer to buy or sell securities. Potential investors are strongly advised to consult aqualified professional oil and gas industry advisor before making any decisionregarding participation in any exploration prospect(s) or oil and gas venture(s).
Every effort has been made to present accurate and timely information. However,Reliance Energy, Inc. (“Reliance”) does not warrant the accuracy of such informationwhich may be changed, deleted, or updated without notice.
Investing in oil and gas exploration and production can be very exciting and financiallyrewarding; it can also, in certain regrettable circumstances, lead to the loss of one’s totalinvestment. It is critically important for the potential investor to be fully informed andknowledgeable about not only the oil and gas business in general but also the reputationand track record of the company seeking investment.
Reliance Energy
Privately owned company - founded in 1988
Operations in Permian, Arkoma, S Texas, NM
Operate over 34,000 Acres in Wolfberry Trend
Recently Acquired rights to another 46,000 Acres
Current Production- 5,200+ BOEPD
Reliance Energy
5 Drilling Rigs
4 Vertical, 1 Horizontal Rig
2011 Development Budget - $200 MM
Building Crude Gathering System and Gas Plant in Wolfberry
Wolfberry Trend
Spraberry Trend Extended
-Aerially
-Vertically
1996 proven 2,500 Sq Miles
2011 over 10,000 Sq Miles
Courtesy Blacksands Petroleum
Wolfberry Trend FACTORS to Growth
Technology-Shale Plays help us see new pay
Fracs/wireline technology
Regulatory Friendly-CommingleRobust Oil PricesLow Costs to Develop $9-12/BOEFinancial-Capital AccessHedging
Courtesy Blacksands Petroleum
Wolfberry-Yet to Come!40 Acre Spacing Proven
Less than 20 acres being drained
Over 175,000 Potential locations on 40s
Current Rig count -40 Years of Drilling to “Harvest” half of locations Courtesy Blacksands Petroleum
Wolfberry Vertical Extent Originally Spraberry-500-1000’ w/60 MBOE+/- per Well
Now many Operators including 4000+’ of Interval
Clearfork, Spraberry, Dean, Wolfcamp, Cline, Strawn, Atoka
Many areas have Reserves in excess of 150 MBOE per Well
Some areas vertically up to 250 MBOE per Well
Multiple Horizontal Targets Courtesy Pioneer Natural Resources
Wolfberry Drilling Forecast
Great Economics with More Vertical Zones and Higher Oil Prices:
10 Times more Vertical wells to be drilled than over last 60 years
3 String Wells will become more prevalent
Performance Drilling is key to cost control