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      LARTO & FORSTER#1 - RE-ENTRY PROJECT (Work-Over Well(s)


      Mads Andersen on a field visit to Louisiana at the beginning of October 2023.

      The well you see is a typical candidate when we talk about work-over wells (Re-Entry), a well that has not been looked after for a few years and is therefore no longer in production. The reasons can be many, often they are mechanical problems such as a faulty motor, leaking production pipe or a pump unit down the well that is faulty and the current owner has not resolved to spend money on the well or lacks the capital to do the necessary work, often could it also be that what the current owner can produce from the well, typically 5-10 barrels per day, does not fit into their business model as they only want the wells with production of +50 barrels per day.
      On the other hand, these wells fit our model perfectly, because we would like to get hold of them, because good money can be made even if the wells are at 5-10 barrels per day. We also obtain good tax advantages on the oil by having production below 10 barrels per day on our wells, namely only 3.2% in oil tax to the state as our wells are classified as marginal wells, in technical terms what is called "stripper wells". Our operators can often do things much cheaper than the big companies' operators who are often bigger companies with more fixed operating costs than we have overall.

      Pictures from some of the wells we plan to bring back into production.

      Video´s from the field work, more video´s on YouTube Click here
      Congratulations to all investors in the Larto & Forster#1 project, our first well Missiana#15 is now online. Larry did a short 15 min test production yesterday where the well already started flowing oil. The well was running perfectly and without any technical problems, so things look promising. Saturday (today) will be the first full day of production, we are waiting to hear from Larry on how things have progressed.

      But once again congratulations to everyone, we are now flowing oil to our tanks, we expect to spend about 1 week on fine tuning the first wells, after which we will start putting Missiana #13 into production, this should only take a few days as most of the equipment is already in place.

      We'll be posting videos here and on our website, as well as via newsletter to everyone.

      Economy - Estimates $70-90 per barrel of crude oil, the break-even point is at $35.00 per barrel. Click on each economic sheet, to see in a large window. We have made the financial calculation with a 5 year period, this does not mean that the wells cannot produce any longer, we expect between 10 - 15 years.












      $35,00 - Break-even punkt

      Financial summary of this project:
      We have created 6 different scenarios based on the first 3 wells to be put into production "MISSIANA#15, MISSIANA DC 1 AND BELTZHOOVER#1" total expected daily production is 22 barrels per day, which is also the basis of the economics.
      At an oil price of $80.00 per barrel, the payback time will be approx. 13 months, included are the first 12 months' LOE's (year 2024) and depreciation of the original investmentsum over 7 years starting in 2023.
      We have also calculated how more wells will affect the return, we expect an average of 7 barrels per well that is added to production, shows an annually increase in net cash profit of $718,36, this is based on a price per percentage(1%) of $3500 per well we add, depreciations excepted.
      As we connect more and more wells, this return will increase as we achieve higher and higher daily production. Remember that we have the option to participate in up to 15 Work over - wells (Re-Entry) in the same Leases/Fields and with the same potential, so the development opportunities are really big.
      ● Net Revenue Interest 0.70 per (1) percent working interest per well● 1,00 % None - Operated Working Interest in all wells● Investor participates in all the first 5 planned wells (3 oil wells + 2 SWD)● The cost of work-over on the first 3 oil wells is included in the price per percent working interest *(first attempt) see explanation at the bottom of the page● The economics that have been calculated, are based on production from the first 3 wells, totaling 22 barrels per day● The right of first refusal to participate in the other 15 wells to be developed● Our operator SOLA OPERATING LLC, co-owns all the wells we do and knows the wells and is ready to start work as soon as the funds are in place● Estimated reserves 750.000 - 1 million Bbl/oil● The fields are known for the longevity of the wells, many of which have produced for more than 60 years and are still economical to operate.● Read a copy of the assignment you will have to sign in order to participate click here

      Distribution of ownership in this project:
      The operator : 12.00 %
      EnerGyne Resources Multi Well 1 Inc: 63.00 %
      Other investors: 25.00 %

      *Note: When we make financial calculations for a project, we always factor in the things we know need to be done, but as with technical equipment, unforeseen things can happen. So therefore we cannot always know with 100 percent how things will develop, even if we do our best to take into account everything we know about and a little extra.
      Fortunately, these wells are not very expensive to do workovers on, and that is also why we can offer ownership at such a favorable price as in this project.
      So that is why we have chosen to say that the work-over cost is included in the first (1) attempt in this project.
      Thank you EnerGyne Resources

      Other useful information:

      • Visit the Department of Natural Resources - Louisiana Click here

      • Oil and Gas Terminology Click here

      • What is working interest oil and gas contract? Click here