Acquisitions
As mentioned, in 1989, in order to increase the Company's reserve base, Termo initiated an acquisition program for properties to operate. From 1989 to 1999, eighteen acquisitions were made, fifteen in California and three in Louisiana. All properties are operated by Termo today. The total acquisition capital spent was more than $20 million. The acquisitions, to date, have cash flowed more than $50 million. The total remaining proved developed reserve value of these acquisitions as of January 1, 2008 is approximately $30 million discounted at 9% PW. This value does not include future development potential.
| 100% WI | 100% WI | ||
| Cash Flow to Date | Future Value | ||
Time Period |
100% WI Cost | @ 01/01/08 | @ 9% PW |
12/31/05 |
($000) | ($000) | ($000) |
 |
|||
| California | 15,625 | 44,500 | 26,150 |
| Louisiana | 4,570 | 12,775 | 3,900 |
|
|||
| Total Acquisitions | 20,195 | 57,275 | 30,050 |
Exploration
In 1997, the Company implemented a tightly controlled exploration program involving
3-D seismic in the Powder River Basin of Wyoming that resulted in the discovery of the Reservoir Creek Field and S A Creek Field. The S A Creek Unit was formed in year 2000 to waterflood the Minnelusa zone and is currently producing 200 BOPD.
Termo leased 5,000 acres in this area for Muddy and Minnelusa development
and had a joint development agreement with J.M. Huber Corporation for development
of coalbed natural gas reserves on a major portion of the lease position.
Approximately 95 coalbed methane wells have been drilled to date
on the joint operations with production volumes in excess of 8,000 MCFPD.
Additional acreage adjacent to the joint operation lands has been developed
by Termo, with thirty-two wells drilled, with cumulative gas production from these properties approaching four billion cubic feet (4 BCF).