What about the Dlugosch #1? January 5, 2016
At this time, there is no production from the Dlugosch #1. We believe it will produce up we need to come up hole. We are fairly confident we will find natural gas, and there is a good possibility we will discover oil as we come up hole. We are not asking the folks in the Dlugosch #1 to participate in the roadwork, as there would be no benefit to you. Once we have the #1 producing we will assess those investors their share of the work and credits will be given to the investors in the #2. Our plan is to (1) patch the road today, (2) stabilize the production in the #2, (3) once the area has dried out we will complete the permanent repairs, (4) go back to the #1 and get it producing and (5) then focus on drilling the new well on the Parma. I would like to think we can accomplish all this in the first quarter.
Why not take the road work out of the gas and oil and delay checks vs asking for more cash?? Also when are we going to reperf and sell Gas from #1 well? January 5, 2016
Paying for the roadwork out of proceeds is certainly an option and I would be open to polling investors for their feedback. If these patches hold and we can continue to operate during this rainy season, we should be OK. If we are forced into doing larger repairs and we are unable to produce the wells due to the road then it will be another story, and we will have no other option but to do an AFE. I believe the second part of your question has been answered above.