Moose Mountain

Moose Mountain currently has four producing wells, as well as two additional approved drilling sites. The four wells are currently producing approximately $40,000 net income per month. Due to low gas prices, we are only delivering a little over 500 MMBTU per day to fulfill our commitments. The wells are typically shut in for a few days each month, just enough to produce what is required. For all of 2014, 300 MMBTU/day is hedged at an average price of $3.6767 per MMBTU.

Anderson Exploration is searching for buyers interested in purchasing the entire project. Asking price is $6,500,000. Upon purchase, all leases would be delivered with an 80% NRI.

A general map of the area can be downloaded below. The four existing wells, starting on the north, are the Divide 33-35, Divide 32-32, Divide #2 and Divide #1. These four wells in addition to other producing wells off the prospect are shown with lifetime cumulative gas production printed in red next to the well.

If you cannot read the cumulative production, those production figures are: 33-35: 21,757 MCF; 32-32: 119,343 MCF; Divide #2: 782,153 MCF; Divide #1: 1,283,080 MCF. The Divide #1 and #2 wells are obviously very good wells. The 32-32 well started out as a good producer, but quickly depleted indicating there was not enough fracturing to connect the sand lens with others in the area. Perhaps it was too far away from the fault. The 33-35 well was damaged during completion due to an administrative problem at the State level that caused the well to be shut in for several months with water on the formation. The producing sands in this area are very sensitive to water. Water left on the formation can swell bentonite in the producing horizons.

Also on our lands are five prospective locations. We believe that all five locations are near to and on the up-thrown side of the dominant faults in the area. The two locations that are approved are the ones in T 16 S, R 23 E, Sec. 13 and T 16 S, R 24 E, sec. 4.

For further information:

Moose Mountain Prosepect Map: http://www.andexco.net/moose.pdf