Energy Spectrum to sell Oklahoma and Texas producing properties
  by: OilOnline
  Thursday, October 19, 2006

JOC Operating and D.B. Lenhart have exclusively engaged Energy Spectrum Advisors Inc. (ESA) to provide sales advisory services in connection with the offering of certain oil and gas properties located in Oklahoma and Texas.

JOC and Lenhart’s combined average working interest and net revenue interest in the Properties is 78% and 62%, respectively. Monthly oil and gas revenue has recently averaged $167,000 and monthly operating cash flow has averaged approximately $114,000. Net production from the Properties is approximately 90 barrels of oil equivalent per day. JOC operates 99% of the Properties’ total proved PV10 value, a majority of which is located in Noble County, Oklahoma.

JOC, Lenhart, and its third-party engineering consultant estimate remaining net Proved Producing reserves of approximately 757 thousand barrels of oil and 1.60 billion cubic feet of natural gas, or a total of 1.00 million barrels of oil equivalent as of July 1, 2006. Probable and Possible reserves account for an additional 260 thousand barrels of oil equivalent, bringing total 3P reserves to 1.3 million barrels of oil equivalent. JOC and Lenhart believe the Properties have significant proved waterflood upside potential. The Company estimates the total proved PV10 to be approximately $24.6 million (net) and the total 3P PV10 to be $33.3 million (net) as of September 1, 2006.