HENSLEY CONSULTANTS, INC.
-------------------------
16050 East 430 Road
Claremore, Oklahoma 74017
Phone: (918) 342-0466
Fax: (918) 283-1054
Emall: [email protected]
August 7, 2000
Mr. Stan McCabe
Tri-State Energy Corporation
4920 South Lewis, Suit 107
Tulsa, Oklahoma 74105
IRE: APPRAISAL
40% Wl IN SPEARS LEASE & LOCATION NOS. 1 & 2
RENTIESVILLE NORTH FIELD
MCINTOSH AND MUSKOGEE COUNTIES, OKLAHOMA
Dear Mr. McCabe:
As per your request, an appraisal of 40 percent working and 30 percent net
revenue interests in the Spears Lease and two drilling locations in the
Rentiesville North Field of McIntosh and Muskogee Counties, Oklahoma, has been
prepared. The effective date is October 1, 2000.
The appraisal is summarized as follows:
ESTIMATED NET CASH FLOW
RESERVE REMAINING RESERVES Present Worth
CLASSIFICATION Gross Net Total Disc. @ 10%
-------------- --------------------- ----- -----------
PROVEN DEVELOPED
Non-Producing
Gas-MCF 200,113 60,034 $ 187,728 $ 150,628
PROVEN UNDEVELOPED
Non-Producing
Gas-MCF 1,394,096 418,229 1,299,413 946,238
TOTAL-PROVEN
Gas-MCF 1,594,209 478,263 $1,487,141 $1,096,866
The properties in this report are appraised as having proved Developed
Non-Producing and proved Undeveloped Non-Producing reserves. Proved Developed
Non-Producing reserves are quantities assigned on the basis of well logs and
tests that indicate the subject reservoir is hydrocarbon bearing and is
analogous to reservoirs In the same area that are producing or have demonstrated
the ability to produce on formation tests. Proved Undeveloped reserves are the
undrilled portions of reservoir that can reasonably be
1
judged as commercially productive on the basis of available geological and
engineering data. The locations in this report satisfy the following conditions:
(1) the locations are direct offsets to wells that have indicated commercial
production In the objective formation, (2) It Is reasonably certain such
locations are within the known proved productive limits of the objective
formation, (3) the locations conform to existing well spacing regulations where
applicable, and (4) it Is reasonably certain the locations will be developed. A
further explanation may be obtained from DEFINITIONS FOR OIL AND GAS RESERVES
published by the Society of Petroleum Engineers (SPE), dated February 27, l987,
and the 'Petroleum Reserves Definitions" published by the Society of Petroleum
Engineers (SPE) and World Petroleum Congresses (WPC), dated January 3, 2000. The
drilling locations also adhere to the Securities and Exchange Commission (SEC)
definitions for Proved Developed and Proved Undeveloped reserves. Copies of
these definitions will be furnished on request.
Enclosed as Exhibit 1 is a Grand Total Production Rate Forecast and Evaluation
Report for the Spears No. 1 and two offset drilling locations. It shows a
combined yearly forecast of the gross and net gas production, prices, net
operating revenue, net operating expenses (direct, indirect, severance taxes and
transportation), operating cash flow, capital investment, cash flow, discounted
cash flow at 10 percent and present worth profile of the cash flow.
Enclosed as Exhibit 2 are the individual Production Rate Forecast and Evaluation
Reports.
RESERVE ESTIMATION
------------------
The reserves appraised in this report are estimated by volumetric calculations
and analogy. Volumetric calculations utilize productive areas, average
thicknesses, average porosities, average water saturations and other measured
characteristics. Analogy Is based on wells in the area that have produced
economic quantities of hydrocarbon from the same formation under comparable
reservoir characteristics.
CASH FLOW
---------
Cash Flow is the amount exclusive of Federal and State Income taxes, which will
accrue to the appraised Interests from continued operation of the properties to
depletion. This should not be construed as a fair market or trading value. No
provision is made for the cost of plugging and abandoning the wells or the value
of salvable equipment.
Income from the sale of gas Is based on the actual gas price received of $3.99
per MMbtu, less $0.24 per MMbtu transportation, fuel and compressor charges.
This estimated price is $3.75 per MMbtu. The price is held constant.
Monthly operating expenses are estimated at $300 per month per well. These costs
are based on actual expenses and are held constant.
The capital expenditure to perforate and fracture treat the Booch Sand in the
Spears No.1 is based on actual cost estimates from the service companies that
will perform Use work. The cost estimate to drill, complete and equip an Atoka
test Is $145,000 and is Used on cost estimates furnished by service companies
that work in the area.
2
<PAGE>
GENERAL
-------
This appraisal is based on information furnished by you or obtained from
reliable, outside sources. The reserve estimates in this report are prepared
using accepted engineering and evaluation methods consistent with Industry
standards. Information on working and net revenue interests, operating expenses,
and current gas prices are accepted as correct. This information has not been
independently verified. Title or ownership is assumed valid.
Representatives of this firm did not inspect the properties nor supervise well
tests. Many variables affect the projection of producing rates and the recovery
of gas. Some major factors are prudent operations, remedial work, gas
compression and market demand. The reserve estimates in this report assume the
wells will be operated prudently, using accepted gas industry practices. Actual
production and future data may necessitate an adjustment in the reserve
estimates.
Price projections in this appraisal are estimated per Tri-State Energy
Corporations instructions. There is no assurance estimated gas prices will be
maintained. There is no assurance projected future gas prices will be paid.
Undeterminable facts and situations may occur causing the future cash flow from
the sale of gas to vary from the estimates in this report.
This appraisal report is prepared for Ti-State Energy Corporation's exclusive
use. The appraisal report, either in its entirety or any portion, should not be
reproduced, distributed or made available to any other person or company without
the written consent of Hensley Consultants, Inc.
VVell data and worksheets are available for inspection.
Sincerely, HENSLEY CONSULTANTS, INC.
/s/ Daniel R. Hensley
---------------------
Daniel R. Hensley
3
<PAGE>
HENSLEY CONSULTANTS, INC.
APPRAISAL OF 40% WI IN SPEARS LSE & LOC NOS 1 & 2 FOR TRI-STATE ENERGY
PRODUCTION RATE FORECAST AND EVALUATION -- SELECT ID 4-6
<TABLE>
<CAPTION>
WELL----GROSS PRODUCTION-------NET PRODUCTION----------PRICE--------------SALES INCOME----------
YEAR CNT BBL OIL MCF GAS BBL OIL MCF GAS OIL GAS OIL$ GAS TOTAL $
---- --- ------- ------- ------- ------- --- --- ---- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 3 0 104,276 0 31,283 0.00 3.750 0 117,311 117,311
2001 3 0 350,784 0 105,235 0.00 3.750 0 394,632 394,632
2002 3 0 273,398 0 82,019 0.00 3.750 0 307,573 307,573
2003 3 0 228,726 0 68,618 0.00 3.750 0 257,317 257,317
2004 3 0 172,345 0 51,704 0.00 3.750 0 193,888 193,888
2005 3 0 129,924 0 38,977 0.00 3.750 0 146,164 146,164
2006 3 0 97,989 0 29,397 0.00 3.750 0 llO,237 110,237
2007 3 0 73,936 0 22,181 0.00 3.750 0 83,178 83,178
2008 3 0 55,040 0 16,512 0.00 3.750 0 61,919 61,919
2009 2 0 38,323 0 11,497 0.00 3.7BO O 43,113 43,113
2010 2 0 29,108 O 8,732 0.00 3.750 0 32,747 32,747
2011 2 0 21,517 0 6,455 0.00 3.150 0 24,206 24,206
2012 1 0 10,673 0 3,202 0.00 3.750 0 12,007 12,007
2013 1 0 8,170 O 2,451 0.00 3.750 0 9,192 9,192
TOT 0 1,594,209 0 478,263 0.00 3.750 0 1,793,485 1,793,485
</TABLE>
<TABLE>
<CAPTION>
-EXPENSES- --NET-- --OTHER-- --NET CASH FLOW--
YEAR TAXES MKTG OPER TOTAL OPER INCOME COSTS ANNUAL CUMULATIVE 10.00 PCNT DISCOUNTED
---- ----- --------- ----- ----------- ----- ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 8,212 0 1,080 9,292 108,019 126,000C -17,981 -17,981 -18,671 -18,671
2001 27,624 0 4,320 31,944 362,688 0 362,688 344,707 337,211 318,540
2002 21,530 0 4,320 25,850 281,723 8,000C 273,723 618,430 231,275 549,816
2003 18,012 0 4,320 22,332 234,985 0 234,985 853,415 180,565 730,381
2004 13,572 0 4,320 17,892 175,996 0 175,996 1,029,411 122,945 853,236
2005 10,231 0 4,320 14,551 131,612 0 131,612 1,161,023 83,583 936,908
2006 7,717 0 4,320 12,037 98,201 0 98,201 1,259,224 56,696 993,604
2007 5,822 0 4,320 10,142 73,036 0 73,036 1,332,260 38,335 1,031,939
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
YEAR TAXES MKTG OPER TOTAL OPER INCOME COSTS ANNUAL CUMULATIVE 10.00 PCNT DISCOUNTED
---- ----- --------- ----- ----------- ----- ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2008 4,334 0 4,080 8,414 53,505 0 53,605 1,385,765 25,543 1,057,482
2009 3,018 0 2,880 5,898 37,215 0 37,215 1,422,980 16,143 1,073,625
2010 2,292 0 2,880 5,172 27,574 0 27,574 1,450,555 10,874 1,084,499
2011 1,694 0 2,760 4,454 19,752 0 19,752 1,470,307 7,090 1,091,589
2012 840 0 1,440 2,280 9,727 0 9,727 1,480,033 3,170 1,094,759
2013 643 0 1,440 2,083 7,108 0 7,108 1,487,141 2,106 1,096,866
TOT 125,544 0 46,800 172,344 1,621,141 134,000 1,487,141 1,487,141 1,096,866 1,096,866
</TABLE>
<TABLE>
<CAPTION>
PCNT DSCNT $VALUE
<S> <C> <C> <C> <C> <C>
0.00 1,487,141 BBL OIL MCF GAS PREPARED BY: DRH
5.00 1,263,847 ULTIMATE GROSS 0 1,594,209
10.00 1,096,866 CUM PROD GROSS 0 0 EFFECTIVE DATE: OCTOBER 1,2000
15.00 968,145 FUTURE RES GR08S 0 1,594,209
20.00 866,336 FUTURE RES NET 0 478,263
25.00 784,036 GROSS WELL COUNT 0.000 3.000
30.00 716,258 NET WELL COUNT 0.000 1.200
35.00 659,539
40.00 611,416 NET LEASEHOLD 0
45.00 570,092
50.00 534,233
</TABLE>
ROR: > 50.00 IROT:11.10
PAYOUT: EROI:12.10
EXHIBIT 1
<PAGE>
HENSLEY CONSULTANTS, INC.
APPRAISAL OF 40% WI IN SPEARS LSE & LOC NOS 1 & 2 FOR TRI-STATE ENERGY
PRODUCTION RATE FORECAST AND EVALUATION -- SELECT ID 4-6
<TABLE>
<CAPTION>
WELL----GROSS PRODUCTION-------NET PRODUCTION----------PRICE--------------SALES INCOME----------
YEAR CNT BBL OIL MCF GAS BBL OIL MCF GAS OIL GAS OIL$ GAS TOTAL $
---- --- ------- ------- ------- ------- --- --- ---- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1 0 17,265 0 5,179 0.00 3.750 0 19,423 19,423
2001 1 0 56,225 0 16,868 0.00 3.750 0 63,253 63,253
2002 1 0 40,180 0 12,054 0.00 3.750 0 45,202 45,202
2003 1 0 28,713 0 8,614 0.00 3.750 0 32,303 32,303
2004 1 0 20,519 0 6,156 0.00 3.750 0 23,084 23,084
2005 1 0 14,664 0 4,399 0.00 3.750 0 16,497 16,497
2006 1 0 10,479 0 3,144 0.00 3.750 0 11,789 11,789
2007 1 0 7,488 0 2,247 0.00 3.750 0 8,425 8,425
2008 3 0 4,580 0 1,374 0.00 3.750 0 5,152 5,152
TOT 0 200,113 0 60,034 0.00 3.750 0 225,127 225,127
</TABLE>
<TABLE>
<CAPTION>
-EXPENSES- --NET-- --OTHER-- --NET CASH FLOW--
YEAR TAXES MKTG OPER TOTAL OPER INCOME COSTS ANNUAL CUMULATIVE 10.00 PCNT DISCOUNTED
---- ----- --------- ----- ----------- ----- ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1,360 0 360 1,720 17,703 10,000C 7,703 7,703 7,506 7,506
2001 4,428 0 1,440 5,868 57,386 0 57,386 65,089 53,379 60,886
2002 3,164 0 1,440 4,604 40,598 0 40,598 105,687 34,332 95,218
2003 2,261 0 1,440 3,701 28,601 0 28,601 134,288 21,989 117,206
2004 1,616 0 1,440 3,056 20,028 0 20,028 154,317 13,999 131,205
2005 1,155 0 1,440 2,595 13,902 0 13,902 168,219 8,834 140,039
2006 825 0 1,440 2,265 9,524 0 9,524 177,742 5,502 145,542
2007 590 0 1,440 2,030 6,395 0 6,395 184,137 3,359 148,901
2008 361 0 1,200 1,561 3,591 0 3,591 187,728 1,727 150,628
TOT 15,759 0 11,640 27,399 197,728 10,000 187,728 187,728 150,628 150,628
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PCNT DSCNT $VALUE
<S> <C> <C> <C> <C> <C>
0.00 187,728 BBL OIL MCF GAS PREPARED BY: DRH
5.00 167,100 ULTIMATE GROSS 0 200,113
10.00 150,628 CUM PROD GROSS 0 0 EFFECTIVE DATE: OCTOBER 1,2000
15.00 137,229 FUTURE RES GR08S 0 200,113 LEASE ID: 4
20.00 126,151 FUTURE RES NET 0 60,034 LEASE NAME: SPEARS
25.00 116,859 GROSS WELL COUNT 0.000 1.000 WELL NAME: NO. 1
30.00 108,967 NET WELL COUNT 0.000 0.400 STATE: OKLAHOMA
35.00 102,186 COUNTY: MCINTOSH
40.00 96,302 INTERESTS FIELD: RENTIESVILLE NORTH
45.00 91,151 YR MO OILINT GASINT WORINT TANGINT INTANGINT
50.00 86,604 0 10 0.300000 0.300000 0.400000 0.400000 0.400000
</TABLE>
ROR: > 50.00 IROT:18.77 OPERATOR: TRI-STATE ENERGY CORP
RES CAT: PROVED DEVELOPED NONPRODUCING
PAYOUT:0.17 EROI: 19.77 ECON LIMIT: 0810
COMPLETION 7 FRAC TREATMENT IN BOOCH SAND 916-951 FT. -10/1/00
EXHIBIT 2 Page 1
<PAGE>
HENSLEY CONSULTANTS, INC.
APPRAISAL OF 40% WI IN SPEARS LSE & LOC NOS 1 & 2 FOR TRI-STATE ENERGY
PRODUCTION RATE FORECAST AND EVALUATION -- SELECT ID 4-6
<TABLE>
<CAPTION>
WELL----GROSS PRODUCTION-------NET PRODUCTION----------PRICE--------------SALES INCOME----------
YEAR CNT BBL OIL MCF GAS BBL OIL MCF GAS OIL GAS OIL$ GAS TOTAL $
---- --- ------- ------- ------- ------- --- --- ---- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1 0 43,593 0 13,078 0.00 3.750 0 49,043 49,043
2001 1 0 149,025 0 44,707 0.00 3.750 0 167,653 167,653
2002 1 0 124,102 0 37,231 0.00 3.750 0 139,615 139,615
2003 1 0 118,202 0 35,461 0.00 3.750 0 132,977 132,977
2004 1 0 90,487 0 27,146 0.00 3.750 0 101,798 101,798
2005 1 0 69,271 0 20,781 0.00 3.750 0 77,929 77,929
2006 1 0 53,029 0 15,909 0.00 3.750 0 59,657 59,657
2007 1 0 40,595 0 12,179 0.00 3.750 0 45,669 45,669
2008 1 0 31,077 0 9,323 0.00 3.750 0 34,961 34,961
2009 1 0 23,790 0 7,137 0.00 3.750 0 26,764 25,764
2010 1 0 18,212 0 5,464 0.00 3.750 0 20,489 20,489
2011 1 0 13,942 0 4,183 0.00 3.750 0 15,685 15,685
2012 1 0 10,673 0 3,202 0.00 3.750 0 12,007 12,007
2013 1 0 8,170 0 2,451 0.00 3.750 0 9,192 9,192
TOT 0 794,168 0 238,250 0.00 3.750 0 893,439 893,439
</TABLE>
<TABLE>
<CAPTION>
-EXPENSES- --NET-- --OTHER-- --NET CASH FLOW--
YEAR TAXES MKTG OPER TOTAL OPER INCOME COSTS ANNUAL CUMULATIVE 10.00 PCNT DISCOUNTED
---- ----- --------- ----- ----------- ----- ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 3,433 0 360 3,793 45,250 58,000C -12,750 -12,750 -12,999 -12,999
2001 11,736 0 1,440 13,176 154,477 0 154,477 141,727 143,595 130,597
2002 9,773 0 1,440 11,213 128,402 8,000C 120,402 262,129 101,662 232,258
2003 9,308 0 1,440 10,748 122,229 0 122,229 384,358 93,909 326,167
2004 7,126 0 1,440 8,566 93,232 0 93,232 477,590 65,119 391,287
2005 5,455 0 1,440 6,895 71,034 0 71,034 548,624 45,105 436,391
2006 4,176 0 1,440 5,616 54,041 0 54,041 602,666 31,196 467,587
2007 3,197 0 1,440 4,637 41,033 0 41,033 643,772 21,533 489,120
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-EXPENSES- --NET-- --OTHER-- --NET CASH FLOW--
YEAR TAXES MKTG OPER TOTAL OPER INCOME COSTS ANNUAL CUMULATIVE 10.00 PCNT DISCOUNTED
---- ----- --------- ----- ----------- ----- ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2008 2,477 0 1,400 3,887 31,074 0 31,074 674,772 14,825 503,945
2009 1,873 0 1,400 3,313 23,450 0 23,450 698,223 10,171 514,117
2010 1,434 0 1,400 2,874 17,614 0 17,614 715,837 6,946 521,062
2011 1,098 0 1,400 2,538 13,147 0 13,147 728,984 4,713 525,775
2012 840 0 1,400 2,280 9,727 0 9,727 738,710 3,170 528,946
2013 643 0 1,400 2,083 7,108 0 7,108 745,818 2,106 531,052
TOT 62,541 0 19,080 81,621 811,818 66,000 745,818 745,818 531,052 531,052
</TABLE>
<TABLE>
<CAPTION>
PCNT DSCNT $VALUE
<S> <C> <C> <C> <C> <C>
0.00 745,818 BBL OIL MCF GAS PREPARED BY: DRH
5.00 621,831 ULTIMATE GROSS 0 794,168
10.00 531,052 CUM PROD GROSS 0 0 EFFECTIVE DATE: OCTOBER 1,2000
15.00 462,336 FUTURE RES GR08S 0 794,168 LEASE ID: 5
20.00 408,835 FUTURE RES NET 0 238,250 LEASE NAME: LOCATION
25.00 366,175 GROSS WELL COUNT 0.000 1.000 WELL NAME: NO. 1
30.00 331,460 NET WELL COUNT 0.000 0.400 STATE: OKLAHOMA
35.00 302,718 COUNTY: MCINTOSH
40.00 278,560 INTERESTS FIELD: RENTIESVILLE NORTH
45.00 257,992 YR MO OILINT GASINT WORINT TANGINT INTANGINT
50.00 240,280 0 10 0.300000 0.300000 0.400000 0.400000 0.400000
</TABLE>
ROR: > 50.00 IROT:11.30 OPERATOR: TRI-STATE ENERGY CORP
RES CAT: PROVED UNDEVELOPED NONPRODUCING
PAYOUT:0.33 EROI: 12.30 ECON LIMIT: 1312
DRILL & COMPLETE ATOKA PRODUCER 10/1/00. COMINGLE W/BOOCH 10/1/02.
EXHIBIT 2 Page 2
<PAGE>
HENSLEY CONSULTANTS, INC.
APPRAISAL OF 40% WI IN SPEARS LSE & LOC NOS 1 & 2 FOR TRI-STATE ENERGY
PRODUCTION RATE FORECAST AND EVALUATION -- SELECT ID 4-6
<TABLE>
<CAPTION>
WELL----GROSS PRODUCTION-------NET PRODUCTION----------PRICE--------------SALES INCOME----------
YEAR CNT BBL OIL MCF GAS BBL OIL MCF GAS OIL GAS OIL$ GAS TOTAL $
---- --- ------- ------- ------- ------- --- --- ---- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1 0 43,418 0 13,025 0.00 3.750 0 48,845 48,845
2001 1 0 145,534 0 43,660 0.00 3.750 0 163,726 163,726
2002 1 0 109,116 0 32,735 0.00 3.750 0 122,755 122,755
2003 1 0 81,811 0 24,543 0.00 3.750 0 92,037 92,037
2004 1 0 61,339 0 18,402 0.00 3.750 0 69,006 69,006
2005 1 0 45,989 0 13,797 0.00 3.750 0 51,738 51,738
2006 1 0 34,481 0 10,344 0.00 3.750 0 38,791 38,791
2007 1 0 25,853 0 7,756 0.00 3.750 0 29,084 29,084
2008 1 0 19,383 0 5,815 0.00 3.750 0 21,806 21,806
2009 1 0 14,533 0 4,360 0.00 3.750 0 16,349 16,349
2010 1 0 10,896 0 3,269 0.00 3.750 0 12,258 12,258
2011 1 0 7,575 0 2,272 0.00 3.750 0 8,522 8,522
TOT 0 599,928 0 179,978 0.00 3.750 0 674,919 674,919
</TABLE>
<TABLE>
<CAPTION>
-EXPENSES- --NET-- --OTHER-- --NET CASH FLOW--
YEAR TAXES MKTG OPER TOTAL OPER INCOME COSTS ANNUAL CUMULATIVE 10.00 PCNT DISCOUNTED
---- ----- --------- ----- ----------- ----- ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 3,419 0 360 3,779 45,066 58,000C -12,934 -12,934 -13,178 -13,178
2001 11,461 0 1,440 12,901 150,825 0 150,825 137,891 140,237 127,058
2002 8,593 0 1,440 10,033 112,722 0 112,722 250,614 95,282 222,340
2003 6,443 0 1,440 7,883 84,155 0 84,155 334,768 64,668 287,007
2004 4,830 0 1,440 6,270 62,736 0 62,736 397,504 43,827 330,834
2005 3,622 0 1,440 5,062 46,676 0 46,676 444,180 29,644 360,478
2006 2,715 0 1,440 4,155 34,636 0 34,636 478,816 19,998 380,476
2007 2,036 0 1,440 3,476 25,608 0 25,608 504,425 13,442 393,917
2008 1,526 0 1,400 2,966 18,840 0 18,840 523,264 8,990 402,908
2009 1,144 0 1,400 2,584 13,765 0 13,765 537,029 5,972 408,880
2010 858 0 1,400 2,298 9,960 0 9,960 546,989 3,929 412,808
2011 597 0 1,320 1,917 6,605 0 6,605 553,595 2,377 415,186
TOT 47,244 0 16,080 63,324 611,595 58,000 553,595 553,595 415,186 415,186
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
PCNT DSCNT $VALUE
0.00 553,595 BBL OIL MCF GAS PREPARED BY: DRH
5.00 474,916 ULTIMATE GROSS 0 599,928
10.00 415,186 CUM PROD GROSS 0 0 EFFECTIVE DATE: OCTOBER 1,2000
15.00 368,580 FUTURE RES GR08S 0 599,928 LEASE ID: 6
20.00 331,350 FUTURE RES NET 0 179,978 LEASE NAME: LOCATION
25.00 301,002 GROSS WELL COUNT 0.000 1.000 WELL NAME: NO. 2
30.00 275,831 NET WELL COUNT 0.000 0.400 STATE: OKLAHOMA
35.00 254,636 COUNTY: MCINTOSH
40.00 236,554 INTERESTS FIELD: RENTIESVILLE NORTH
45.00 220,949 YR MO OILINT GASINT WORINT TANGINT INTANGINT
50.00 207,348 0 10 0.300000 0.300000 0.400000 0.400000 0.400000
</TABLE>
ROR: > 50.00 IROT: 9.54 OPERATOR: TRI-STATE ENERGY CORP
RES CAT: PROVED UNDEVELOPED NONPRODUCING
PAYOUT:0.33 EROI: 10.54 ECON LIMIT: 1111
DRILL & COMPLETE ATOKA PRODUCER 10/1/00.
EXHIBIT 2 Page 3
