Agreement for professional services. waste to energy solutions


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Agreement for professional services. waste to energy solutions

  1. 1. EXECUTIVE SUMMARY - BRIGHT 1H HORIZONTAL OIL/GAS WELLBACKGROUND:Southlake Energy, Inc., (“Southlake”) an independent energy companybased in Fort Worth, Texas, is scheduled to drill its third horizontalwell (the Bright 1H) to the Marble Falls formation on leases itcontrols in Jack County in the last half of June 2012 or the firsthalf of July 2012. Southlake’s first horizontal well (the Birdwell 1H)drilled in 2011 tested at over 600 barrels of oil per day and over850,000 cubic feet of natural gas per day. The Company plans to re-complete the first well in June 2012, when it will seal off some ofthe original perforations in the horizontal section of the well andshoot some new perforations in the horizontal section of the well.Upon finishing the re-completion of the first well, Southlakeanticipates producing the well at 300 to 400 barrels of oil equivalent(“BOE”) per day. The horizontal wells drilled into the Marble Fallsformation are expected to produce hydrocarbons for 12 to 15 years withan anticipated annual decline curve of 6% to 7%.The company’s second well will enter the final phase of its completionon May 28, 2012 and is expected to be on-line and selling oil and gasin the second week of June 2012. Southlake expects the 2nd well (theBirdwell 2H) to produce 300 to 400 BOE per day. After the completionof the Birdwell 2H and the re-completion of the Birdwell 1H, Southlakewill have its contract driller deliver the drilling rig to the siteand begin drilling the Bright 1H horizontal well.The Birdwell 2H and the Bright 1H well’s vertical sections are 90 feetapart on the same drilling pad and their horizontal sections willtravel in opposite directions. Southlake shot 4.5 square miles of 3-DSeisimc on the leases it controls in Jack and Young Counties, Texas(the leases consist of 1,067 contiguous acres). Southlake has also runtwo full suites of well logs on the Birdwell 1H and the Birdwell 2H,thus the Company has gathered significant science on the lease wherethe Bright 1H (an offset to the Birdwell 2H) will be drilled.OPPORTUNITY:The company is selling working interest in its Bright 1H well. Oneworking interest point is valued at $55,000.00. The company has up to40 working interests available on a first come first serve basis.The Intangible Drilling and Completion Costs for the Bright 1H wellwill equal 76% of the subscription price. The subscription price is aturnkey price covering drilling and completion of the Bright 1H well.AGREEMENT  FOR  PROFESSIONAL  SERVICE   PAGE  1  
  2. 2. SCENARIOS:The following scenarios are calculated based on 28 Production days amonth. All royalties, monthly operating expenses, state production orseverance taxes and PROFESSIONAL SERVICE FEES have been subtractedfrom gross monthly income to arrive at the return to investors shownbelow.Scenario 1: 300 BOE per day at $80 oil is estimated to provide anannual net income to owners of 1% working interest of $53,928 or anannual income of $1,898,265 to the investor who purchases theremaining 40% working interest in the Bright 1H well.Scenario 2: 200 BOE per day at $100 oil is estimated to provide anannual net income to owners of 1% working interest of $56,929 or anannual income of $2,003,900 to the investor who purchases theremaining 40% working interest in the Bright 1H well.In considering an investment into the Bright 1H well, the Companywants any potential investors to understand that production levels mayrange anywhere from 150 BOE per day to 600 BOE per day. Also eachinvestor must realize that the price of oil and natural gas is avolatile number and is prone to significant increases and decreases.If you have interest in participating in Southlake’s Bright 1H well,please see the attached agreement and the person who prepared thisdocument will provide more information if requested.AGREEMENT  FOR  PROFESSIONAL  SERVICE   PAGE  2  
  3. 3. AGREEMENT FOR PROFESSIONAL SERVICES Agreement made this ____ day of _______________, 2011, betweenthe undersigned _________________________ and or Assigns, Affiliatesand Subsidiaries (owned wholly or partially) and personally,hereinafter referred to as “CLIENT’ and ____________________ and orAssigns, Affiliates and Subsidiaries (owned wholly or partially) andpersonally, hereinafter referred to as “Service Provider”. Recitals WHEREAS, the Client agrees to engage the Service Provider torender services on the terms and conditions provided in thisAgreement; and WHEREAS, Service Provider desires to render professional servicesfor Client as provided in this Agreement; NOW, THEREFORE, Client hereby engages the Service Provider and inconsideration of the mutual promises herein contained, the partiesagree as follows: Service Service Provider agrees to provide access to Energy Companydrilling the Bright 1H well in Jack County. Client agrees to act ingood faith in purchasing one or all available working interests in theBright 1H well. Fees 1. Clients and/or assigns agree to pay Service Provider a fee oftwelve per cent (12%) of any and all working interest in the Bright 1Hwell purchased by the Client. Clients and/or assigns further agree topay Service Provider a sum equal to twelve percent (12%) of any andall working interests in any and all additional wells purchased by theclient from the Energy Company and/or its assigns. The fee is to bepaid as twelve (12%) percent of any and all working interest and willbe owned by the Service Provider paid on a monthly basis by the EnergyCompany. Disclaimer 2. Service Provider in no way guaranties the number of barrels ofAGREEMENT  FOR  PROFESSIONAL  SERVICE   PAGE  3  
  4. 4. oil that will be produced by the Bright 1H well or the cost of abarrel of oil at any time in the future. In addition, Client agrees tohold Service Provider harmless against loss, damages or loss ofpotential financial opportunities incurred by Clients investment inBright 1H well. Entire Agreement 3. This Agreement supersedes any and all other agreements, eitheroral or in writing between the parties hereto with respect to thesubject matter hereof, and no other agreement, statement or promiserelating to the subject matter of the Agreement which is not containedherein shall be valid or binding. Governing Law 7. The validity of this Agreement and of any of its terms orprovisions, as well as the rights and duties of the parties hereunder,shall be governed by the laws of the State of Texas and shall beperformable in Tarrant County, Texas. Amendment 8. This Agreement may be amended by the mutual agreement of theparties hereto in writing to be attached to and incorporated into thisAgreement. EXECUTED at _______________________, Texas on the datehereinabove first written. Client By: Print Name:__________________________________ Signature:__________________________________ Service Provider By: Print Name:___________________________________ Signature:___________________________________AGREEMENT  FOR  PROFESSIONAL  SERVICE   PAGE  4