The Spraberry Trend is operated by Pioneer Natural Resources, and the Flying M field is operated by Chesapeake Energy. The acquisition price is $1.29 million for various interests in seven producing wells and the leasehold and related equipment, effective July 1, 2008. The working interests range from 6.5% to 39.25% and the net revenue interests range from 5.69% to 29.44%.
Based upon engineering reports and certain standard assumptions, this is expected to add approximately 41,000 barrels of oil equivalent in proved developed producing reserves net to FieldPoint.
Ray Reaves, president and CEO of FieldPoint, said: We are excited to be the successful bidder for these properties. It is an important acquisition for FieldPoint. We estimate that the reserves acquired could replace more than 50% of our total 2008 oil and natural gas production. We also believe that this acquisition could further serve to increase our production by affording FieldPoint the opportunity for certain additional development in these fields.
