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Embed code for: FrusettMineral lease activities update letter_10816
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December 8, 2016 RE: Missing Royalty Receipt & Update on HBP lease activities Dear Syncline Ranch Mineral Owner: Enclosed along with your royalty check for October crude oil sales is your royalty statement for the month of September, 2016 that was in-advertently left out of the envelope when last month’s check was mailed to you. As you may have noticed, even though crude oil prices are currently approximately 60% lower than mid-2014, the sales volumes from Syncline Ranch are up. As relates to the HBP lease hold estate (1950’s era Shell Oil and Gas leases), we have had some success in the field re-completing existing wells in a shallower horizon. We have also been successful re-entering some previously plugged and abandoned wells, namely the F&I 47-31, F&I 38-31. We also have plans to re-enter the Frusetta #1 well (never completed as a producer) and the F&I 49-31. While the production volumes don’t justify drilling new wells to target these shallower horizons, by re-entering and re-working old wells the economics are viable. In that regard, overall field production has increased from 10-15 barrels per day a few years ago to now around 45 barrels per day due to these activities. We’re hoping to continue to have success with these activities in 2017 and also hoping for some stronger oil prices. As always, if you have any questions about the foregoing, please don't hesitate to call me directly at 805-947-7819 or via email at email@example.com. Kind regards, Steven F. Coombs President P.O. Box 1247 Carpinteria, CA 93014