high point oil inc.

A series of unanticipated events and consequences have given rise to a perfect storm for drilling. Commodity prices and highly debt leveraged companies were supposed to create unprecedented fire sale acquisition opportunities. These bargain basement prices have not materialized as a result of the creditors inability to come to grips with the degree of debt/value ratios and the uncertainties associated with the Alberta Government's revamped LLR/LMR legislation. What is certain and quantifiable is the 40%-50% reduction in drilling and equipping costs of new wells and services over the past 24 months. These reductions, in combination with drastically reduced 3D seismic acquisition costs, have created an ideal scenario to drill for conventional light oil. How Do We Source Conventional Light Oil? Whats Old is New Again. With few exceptions, the only source of significant conventional light oil reserves reside in the Devonian carbonate systems of Alberta. Conveniently, the noted few exceptions exist in horizons overlaying the Devonian and are easily evaluated as secondary targets while drilling through them. All horizons in High Point's area of focus are proven, high volume light oil producers. These vertically drilled wells require no fracking with risk capital seldom exceeding $400K and successful wells on production for between $700K - $800K. Because of initial production rates ranging from 150 BOPD - 500 BOPD, payout is achieved in months, not years.