click photo for larger view

INTRODUCTION
Petrex Oil LC, in combination with Enerex LC and New Era Oil & Gas Co. (Owners) are offering the central portion of the Radarville Oil Field in Natrona County, Wyoming, for sale. The property consists of six completed wells, currently producing a total of 20 BOPD with good upside production potential, newly completed well (not yet producing) and ten prime drill locations, two of which are fully permitted and prepared for immediate drilling. (See Radarville Field Development Map).

The owners are able to deliver a 100% Working Interest of a 75% NRI in the "shallow rights" in the entire property consisting of approx. 126 acres. Engineering reports agree that approx. 850,000BBLS of primary recovery remain in the proven undrilled reserves above a depth of 2,000 feet. (See Engineering Report).

Project Overview

The property consists of two aspects; current production and eleven development locations. One of the development locations includes the newly completed, not-yet-producing, Well #9. (See Details and Photos of Radarville #9.

The upside potential of the producing wells is based on the extraordinary bottom hole pressure of 500 to 650 Psi. in the producing wells, some of which are 50 years old and have had very little modern production enhancement treatment. Wells in this field respond extremely well to even moderate fracture treatments and we believe that long term production could easily be doubled with proper treatment. New wells in this field are often produced for a year or more before any formation treatment is applied. Upon treatment with a light fracture (usually 400 to 600 BBLS), the wells in this central part of the field respond with 15,000 BBL production, or more, in the year following treatment, and 10,000BBLS the next year. This belief in the upside potential is further enforced by the fact that some of the outlying wells in lesser thicknesses of this formation have, with better treatments, produced twice the amount that these old wells, which are in the superior part of the formation, have produced. The extraordinary response from a moderate treatment of an existing or new well is likely due to a permeability which ranges up to 1,100 md. (Not a typo. Core samples in repository in Denver reveal a permeability of 1,100 md.)

The ten remaining drilling locations, two of which are permitted and ready to drill, are expected to produce approximately 78,000 BBLS of oil each, according to the engineering report. Several engineering reports have been done over the years, and all have resulted in a variation of less than 5% more or less, even though varying methodology was used and the engineers were not aware of the results of the others' reports.