Page 10 - Petrospex_Elaine Prospect

we run on the computer called “Wolfpack”. We also input the expenses

for the well which normally are the operator fee, pumper fee, electric
bill, and any other expense such as water disposal or well repairs (if

any).

The Wolfpack software will then calculate each working interest

owner’s portion of the revenue and expenses and print out itemized
statements. These statements along with checks are then mailed to you.

Any gas produced is sold to a local company which is Embridge Energy

and is transported via pipeline. The gas revenue will be included in your
statement.

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To recap, we will receive the payment from the buyer on June 20 for
the oil & gas produced and sold to them in May. We then prepare the
statements and checks and mail them resulting in a 30 lag on your first

check.

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