Dear AMoore, thank you for your inquiry. The net revenue interests vary in different programs, in different phases of drilling, and in different locations. Mississippi is different from Oklahoma and different from Alberta. It would be far too complex to give an exact breakdown for each well on this forum, you which can nevertheless be obtained these details, within the Lexaria reserve report which is filed at the SEC.( a link to all Lexaria’s SEC filings is provided on this Hub under the Quick Facts section under view filings) However typically about 60% - 65% net revenue interest of whatever our gross interest is, on average.
In Mississippi, Lexaria has a 30% working interest (WI) in a 12-well program, a 45% WI in a 7-wellprogram, and 50% WI in a 43-well program, located in Palmetto Point, Red Bug, andother areas of SouthWestern Mississippi. As of 09/24/07, a total of 22 wells havebeen drilled, with 40 wells remaining to be drilled under the Area of Mutual Interest.
(AMI) The Frio Geological formation is the primary target.9 wells are currently
producing and 6 wells are currently shut in or awaiting connections. This includes
the F-12 oil field discovery, an important oil discovery that is expected to add
significant cash flow to Lexaria. Lexaria’s operator in Mississippi is Griffin & Griffin Exploration and in Oklahoma it is Ranken Energy. The Mississippi region is a key focus of Lexaria for several reasons, drilling costs for shallow holes are inexpensive and completion times are quick. Reliable and extensive infrastructure exists, including pipeline gathering systems. Success rates of Frio wells have been around 70%. The AMI is very large, in excess of 200,000 acres.
In Oklahoma:Owl Creek, Lexaria has acquired a 7.5% interest in the Owl Creek Project for payment of$100,000.00. Lexaria has participated in the drilling of two wells at Owl Creek since it acquired its interest, and one of those, the Isbill #2, is producing roughly 40 BOPD and 10Mcf/d as of June 2007
Lexaria is constantly reviewing additional property and production opportunities on an ongoing basis.
Regards,
Agoracom Investor Relations
