Business Holdings For Sale

KMK Oil & Gas, Inc. (KMK) - Business Holdings for Sale (Marion Co., TX) Asking Price - $4,250,000.00 (price reduced from $5.0 Million) Additional Leasing Expense - $625,000.00 (leasing additional acreage) Total Amount - $4,875,000.00 This is an "Oil & Gas Drilling Prospect" in NE Texas (Marion Co., TX) and the Sales Offering consists of the following; There are 1,450 Net Mineral Acres (NMA) involved in this "Oil & Gas Drilling Prospect" with all lease acreage combined in one Lease Block (13 Least Tracts). There are four to six shallow oil & gas producing formations between the depths of 5,000' to 7,500' but the main and most prolific zones are the four deeper oil & gas formations between the depths of 9,300' to 12,000' which hold "Virgin" oil & gas reserves as well as "Virgin" formation pressures. The four deep formations are the 800' thick Cotton Valley, 400' thick Bossier Shale, 400' thick Haynesville Shale/Lime & the 500' thick Smackover. Amount of drilling locations on KMK's 1,450 NMA Lease Block is approximately 15 to 18 deep vertical wells & approximately 36 shallow vertical wells (+ or -) & KMK has 2-D Seismic, Feasibility & Petrophysics studies conducted on this drilling prospect which shows all formations structurally high to the surroundings & is surrounded by producers completed by major oil companies such as BP America, Devon Energy, Forest Oil, GMX, XTO, Sabine Oil, etc. KMK's 2-D Seismic has also identified an "Oil Trap" present where there is a drilling pad built & ready for a rig now (drill & complete approx. 28 days). There will be no delay in receiving oil & gas revenues monthly as oil is trucked out & KMK has a 2" Gas Tap installed waiting to deliver gas to sale. KMK's experience with this prospect area in NE Texas is the shallower formations stand approximately a 60/40 percent chance of holding solid production when completed because of the amount of wells which have been drilled in this area in the past 65 years or more (caused depleted formation pressures in some areas). However, the four deeper formations hold very little risk as almost every Cotton Valley formation well drilled is commercially productive & the 2-D Seismic & Feasibility studies show the 800' thick Cotton Valley formation producing 400 to 600 bbl, oil per day (BOPD) & between 1,000 to 5,000 MCF gas per day with the lifetime of the wells being between 25 to 40 years (horizontal wells produce 3 to 5 times as much). The 2-D Seismic & Feasibility studies show the Cotton Valley & Haynesville Shale/Lime (only) recovering 1.25 Million bbl. of oil & 7.5 BCF of gas per vertical well omitting the other two deep formations during the lifetime of one vertical well. KMK deems this prospect "Low Risk & High Return". The Net Revenue Interest (NRI) ranges from a 75% to 78%, 80%, 81.25% to 83.3334% across the 1,450 Acre Lease Block. Vertical wells are expected to recover revenue returns (from just two of the four deep zones) on a 75% NRI per well of over $73.0 Million with a completed cost of $3.2 Million per 12,500' vertical well (horizontal well cost approx. $10.0 Million completed). This oil & gas play covers a 9,000 sq. mile area & is expected to be the "Fourth Largest Gas Play Worldwide" & KMK's acreage sets on the Northern/Central portion of the play. Location: Harrison County, Texas Number of Employees: 3