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Oklahoma
Enterra has land in Grant, Lincoln and Logan Counties. Average production for 2008 from the area was approximately 24 mmcf/d of natural gas and 545 bbl/d of crude oil and NGL. The key producing horizon is the Hunton Group, which is a carbonate rock formation that has been largely overlooked by the industry in areas with high water/hydrocarbon production ratios. Over the last decade, new drilling and production techniques have enabled the profitable development of hydrocarbon production from these areas of the Hunton formation. Extensive dewatering lowers pressure allowing the liberation and mobilization of oil and gas from smaller rock pores. The play is statistical in nature with a variety of well performance characteristics. On average, total gross peak hydrocarbon production rates settle at 150 boe/d per horizontal well within six months after drilling and tie-in and this production consists of NGL-laden natural gas and light sweet oil. Gross proved plus probable reserves are approximately 327,000 boe on average per horizontal well.
The Trust has total proved and probable reserves in Oklahoma of 6,909 mbbl of crude oil and NGLs and 50.3 Bcf of natural gas as of December 31, 2008. Operating costs on these properties averaged $11.42/boe during 2008. At present, Enterra has identified approximately 100 drilling locations on these properties.
Enterra has drilled 64 wells into the formation since 2006 with a 97% success rate. The area has shown attractive full-cycle capital efficiencies with payout per well between six and 18 months.
Enterra has experienced low finding and development costs below $9.00/boe in the three years since 2006. As a result of these low costs and the repeatability of success, Enterra ranks its Oklahoma prospects among the best in its portfolio and among the best in the industry. Future plans include continued aggressive exploitation of this opportunity.