Finding and Developing Oil and Gas. Between 2010 and 2013 we purchased interests in a number of high-risk, high-potential exploratory prospects, drilling new wells and re-entering old wells on five of them, resulting in a significant new field discovery in Wilbarger County, Texas and an old field upgrade in Knox County, Texas. After drilling dry holes on the other three prospects, we sold all our leases in those and the other exploratory prospects in 2014 and 2015 to concentrate on the development of our two producing properties. In early 2018 we sold the producing property we had on the Waggoner Ranch.
Remaining Production Available for Sale We are offering 100% working interest in a 973-acre lease with four producing wells, an injection well and 14 shut-in formerly productive wells in the Bobby B Field, just north of Knox City, Texas.
Well Service Equipment. We are also offering all the well service equipment we acquired over the past five years, used primarily in the development and operation of our North Texas properties.
Reserves Report. A reserves report as of January 1, 2018 was prepared by our registered professional engineer. The report estimates net proved reserves of 129,111 barrels of oil with an after tax net present value of $1.5 million at 7.5% discounted cash flow rate. The
Tax Loss Carry Forward. A purchaser may buy all the assets of the company, or might want to consider purchasing effective (but not nominative) control of the company, free of all liabilities, in order to take advantage of its $3 million tax loss carry forward. Because of the company"s unique corporate structure using common stock and convertible preferred stock, the tax loss carry forward can be carried across the transaction to the new purchaser(s) on a straight-forward basis.