The reserve study, which was conducted by SanTech Upstream, LLC, an independent, third party company, based in Farmington, New Mexico, indicated that the Mason Lake field could have a remaining production life of about 14.8 years with a 13% decline rate. The PV-10 value is estimated to be about $3,279,842.As primary recovery appears to not been completed, the field has an estimated remaining primary recovery of 2.48 MBO and a secondary recovery of 1,189.5 MBO.Hinto Energy owns a 95% working interest in the Mason Lake Field.
George Harris, the Company’s Chief Executive Officer, remarked, “Our re-work efforts at the Mason Lakes Field, during the past few months and last summer, has resulted in a substantial increase in production, as we’ve recently announced.The results of the reserves study clearly supports our currentrework efforts on the remaining producing wells in the field, and also indicate the potential for the drilling additional injection and production wells which will be part of the Phase Two development of the field.Harris continued, “With an estimated PV-10 Value of $3,279,842, we feel that the Mason Lakes Field provides a solid foundation for the Company to build out our daily oil production.”
The Company intends to evaluate other production opportunities in close proximity to the Mason Lakes Field in Musselshell County, Montana and these acquisition opportunities may include existing production, potential upside from production enhancements and adequate spacing options for additional wells.
Hinto Energy, Inc. engages in the exploration, acquisition, and development of oil and gas properties, with current properties in Utah and Montana encompassing approximately 15,000 acres and 40 wells. The Company is based in Greenwood Village, Colorado.