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An oil opportunity has become available including 15 acres of a lease for $105,000. This would equate to 1.1719% of interest in all of the wells drilled. Our share of the costs of the first four wells would be approximately $340,000. The total cost of the lease and the first four wells would be approximately $445,000.

Four wells are set to be drilled year one and the following estimations provide a possible return on investment for $50/barrel oil WTI (average) which equals $45/barrel oil ND Crude.

EXAMPLE 1

Well #1 will produce approximately 216,000 barrels of oil in the first year. At $45 per barrel, that would produce $91,127 of revenue in Year 1.

Sample of revenue gained from Natural Resource investing.

EXAMPLE 2

Since there are 4 AFEs for wells all within the first year, they would potentially produce 864,000 barrels of oil and $364,508 of revenue in Year 1.

Example of revenue gained from Natural Resource investing.

Expenses for this scenario include the cost of the lease, drilling of 4 wells, and 5% JIB expense to total approximately $571,661. These expenses would all be covered by the initial $445,000 investment and oil revenue.

Total barrels of oil for these 4 wells throughout the first year is approximately $ 864,000. At $50/$45 (WTI/ND Crude) oil average throughout this time period, total revenue would be approximately $364,508.

Note - On average, wells in the Bakken produce oil for 30-40 years. The average amount of wells per pad are 8-16.

Jamieson Capital Natural Resource Fund Example

  • INTRO
  • $100,000
    per $50,000 Lease Acquisition & $50,000 AFE
  • PROJECTED ANNUAL RETURN

  • Year 1 | $83,454
  • Year 2 | $46,363
  • Year 3 | $2,480
  • Year 4 | $30,909
  • Year 5 | $18,545
  • TOTAL RETURN

  • $181,752

  • STANDARD
  • $250,000
    per 100% AFE & 50% Lease costs are tax deductible in Year 1
  • PROJECTED ANNUAL RETURN

  • Year 1 | $208,601
  • Year 2 | $115,889
  • Year 3 | $6,200
  • Year 4 | $77,259
  • Year 5 | $46,356
  • TOTAL RETURN

  • $454,304

  • PREMIUM
  • $415,000
    per $207,500 Lease Acquisition & $207,500 AFE
    100% AFE & 50% Lease costs are tax deductible in Year 1
  • PROJECTED ANNUAL RETURN

  • Year 1 | $346,282
  • Year 2 | $192,379
  • Year 3 | $10,292
  • Year 4 | $128,253
  • Year 5 | $76,952
  • TOTAL RETURN

  • $754,158

These numbers follow the estimates on the narrative including a Net Revenue Interest of 0.011719, an initial recovery of 20,000 barrels a month to start, and four AFEs being drilled in a one year span. It also takes into account the expenses associated with this investment including the AFEs, 80% ownership in oil retreived, $5 discount for ND Crude, Refracking, and JIB expenses.

THE BAKKEN — UNPRECEDENTED OPPORTUNITY

TECHNOLOGY INOVATIONS

New innovations in drilling technology allow operators in the Bakken to take full advantage of the formation. These technologies allow for cheaper and more efficient oil extraction which saves money and time. The Bakken’s potential can be fully realized, which means higher prosperity for all interests involved directly or indirectly in a range of industries.

THE BAKKEN TIMELINE

2000

First horizontal well drilled into the Bakken formation in Montana

2005

EOG successfully combines horizontal drilling and hydraulic fracturing in the Parshall Field.

2010

Rig counts exceed 100 in North Dakota, production exceeds 300,000 for the first time, and Baker Hughs successfully completes a 40-stage frac and preceding future state counts of 60 or more.

2013

The North Dakota oil & gas industry exceeds $25 billion of economic impact.

2014

Daily production exceeds 1 million BOPD for the first time.

2016

Drilling breakeven costs plummet to $35 or less for many producers.

2017

Dakota Access Pipeline enters service, reducing transportation costs by as much as $10 per barrel.

2018

Continental Resources announces new reserve estimate totaling 30 to 40 billion barrels of oil, doubling its previous estimate.

PRESENT

HORIZONTAL DRILLING

Horizontal drilling has opened up shale formations like the Bakken for exploration. Shale rock has many small, vertical fractures. Drilling horizontally reaches more of the natural cracks in the rock where the oil and gas are. Drilling horizontally exponentially increases the area that can be accessed for a fraction of the land used, decreasing the surface impact while resulting in significantly greater economic production.

HYDRAULIC FRACTURING & COMPLETION

Shale rock naturally has small fractures in it, but they are too small for oil to flow to these areas. To open these cracks, well operators pump water and sand into the well under high pressure to crack the rock whereby the sand fills the small cracks and props them open for the oil to escape. This process happens 10,000+ feet below the surface with as many as five layers of cement and steel lining the well to protect groundwater.

Bakken drilling.

THE ADVANTAGES OF SHALE

  • Well-known, geographically expansive geography
  • make shale more predictable versus drilling
  • Short planning timelines and 80-90% less
  • capital required than offshore drilling
  • High-quality oil production
  • Decades of remaining drilling inventory

MINERAL OWNERSHIP

Jamieson Capital offers opportunities for investors to participate in funds that purchase and hold mineral interests for the long term.

LEASE PURCHASES

Jamieson Capital is partnered with a highly recognized and respected land firm in western North Dakota to identify and purchase leases from current leaseholders.

NON-OPERATING INTERESTS

Jamieson Capital’s investment funds offer investors the ability to participate in the investment and performance of oil wells as a leaseholder and joint venture opportunities.

SERVICE COMPANY & REAL ESTATE INVESTMENT

The growth of western North Dakota and its oil industry is likely to continue for decades. Jamieson Capital is a source of capital for western North Dakota oil service companies and real estate.

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