1
EXHIBIT E
[NOVA PETROLEUM RESOURCE CORP. LETTERHEAD]
August 13, 1997
Xx. Xxxx Xxxxxxxx
Pilares Oil & Gas, Inc.
S 1" & Willis
Abilene, Texas
RE: EXECUTIVE SUMMARY GLASS MTNS LEASE "AENW" PROPERTY PLUS XXXXXXX LEASE
PROPERTY RESERVES AND SEC_SX_10 VALUATION
Dear Xx. Xxxxxxxx;
As per your request of Xxxx.
Property: GLASS MTNS LEASE "AENW" PLUS XXXXXXX LEASE
Acres: + \- 1,280 acres (2 sections)
Location: Pecos & Concho Counties, Texas U.S.A.
Number of Xxxxx to be Drilled: 16 Total
Production Expected: Natural Gas
Reserves and Valuation (un-risked): at $2.00 MCFG:
NET RESERVES (MCF): 32,847,424
NET PRESENT VALUE AT 10% DISCOUNT (UN-RISKED): $ 20,704,058
Respectfully
/s/ Xxxxxx X. Xxxxxxxxx
--------------------------------
Xxxxxx X. Xxxxxxxxx
CPG # 3358; XXXXX # 1901
2
[NOVA PETROLEUM RESOURCE CORP. LETTERHEAD]
August 13, 1997
Xx. Xxxxxxx X. Xxxxxxxx
Pilares Oil & Gas, Inc.
Abilene, Texas 79605
RE: Xxxxxxx Gas Development Project (SEC-SX): Paint Rock Field
Reserves, Economic Analysis and Cash Flow Projections
Dear Xx. Xxxxxxxx;
The Xxxxxxx Gas Development Project consist of 1 Proven Developed Producing
gas well ( # 2-C) which has Proven Developed Non-Produced pay zones remaining to
be produced by reworking the # 2-C wellbore and 8 Proven UnDeveloped Gas xxxxx
which remain to be drilled.
SUMMARY OF XXXXXXX PROJECT FULL DEVELOPMENT (SEC-SX)
Reserves Net Oil Net Gas NPV @ 10 % Disc.
-------- Bbls MCF $ USD
---- --- ----------------
PDP+ PDNP
+ PUD 8,416,964 $ 5,829,326
NPV @ 10 % Disc. : $ 5,829,326
/s/ XXXXXX X. XXXXXXXXX
3
[NOVA PETROLEUM RESOURCE CORP. LETTERHEAD]
August 13, 1997
Xx. Xxxx Xxxxxxxx
Pilares Oil & Gas, Inc.
S 1" & Willis
Abilene, Texas
RE: SUMMARY GLASS MTNS LEASE "AENW" PROPERTY
Dear Xx. Xxxxxxxx;
As per your request of Xxxx: Summary of reserves and property valuation.
Property: GLASS MTNS LEASE "AENW" PROPERTY
Acres: +\- 640 acres (1 section)
Location: Pecos County, Texas U.S.A.
All of Sections 24 T.T. RR Co. Blk 170 of Pecos County, Texas
Number of Xxxxx to be Drilled: 7 Total 11 Delineation Development Xxxxx.
Production Expected: Caballos Gas; Wolfcamp Gas; possible L. Paleozoic Gas
Lease "AENW" Reserves Value (un-risked): at $ 2.00 MCFG:
NET PRESENT VALUE AT 10% DISCOUNT (UN-RISKED): *********** $ 14,874,732
Respectfully
/s/ XXXXXX X. XXXXXXXXX
--------------------------------------
Xxxxxx X. Xxxxxxxxx
CPG # 3358; XXXXX # 1901
Encl: Economics evaluation (3 pages)
