Beard Subsidiary Purchases the Dilworth Field in Kay County, Oklahoma
20 April 2009 - 5:19PM
PR Newswire (US)
OKLAHOMA CITY, April 20 /PRNewswire-FirstCall/ -- The Beard Company
(OTC Bulletin Board: BRCO) today announced that Beard Dilworth, LLC
("BDLLC"), a subsidiary of the Company, has purchased the
properties comprising the Dilworth Field in Kay County, Oklahoma,
for a total consideration of $1,695,000. Herb Mee, Jr., President
of The Beard Company, reported that a Company subsidiary, Beard
Dilworth, LLC, closed on the purchase of the Dilworth Field on
April 17, 2009. The properties purchased are situated in Sections
17, 18 and 20, Township 28 North, Range 1 East in Kay County,
Oklahoma. It has been estimated that the Dilworth Field has
produced more than 70 million barrels of oil since the discovery
well was completed in 1910. A reservoir study by one of America's
most highly respected engineering firms has estimated that the
Field should be capable of producing an additional 3.4 to 4.4
million barrels of recoverable oil from the Arbuckle Formation by
utilizing high volume extraction ("HVE") technology. BDLLC's
targeted rate of fluid recovery for the project is approximately
220,000 barrels of fluid per day with an anticipated hydrocarbon
yield of 1% to 2%. BDLLC is currently in the process of raising
$7,000,000 from private investors to finance the purchase of the
Dilworth Field and complete its contemplated development program.
Those investors who contribute the initial $2,000,000 of capital to
BDLLC will receive a 3.5-to-1 return ($7,000,000) before payout
("BPO"); the investors contributing the next $5,000,000 will
receive a 3-to-1 return ($15,000,000) BPO. After payout ("APO") of
the $22,000,000, the investor group will own 40% of BDLLC, the
Company will own 10%*, and Subsurface Minerals Group LLC ("SMG"),
the former owner (which has approximately $10,000,000 invested in
the Dilworth Field), will back in for 50%. *The Company will
actually own a 10% interest BPO by virtue of its $700,000 capital
contribution to BDLLC, and 14% APO as a result of its 10% back-in
plus its 4% APO interest on its $700,000 investment. Under the
contemplated development program, BDLLC plans to drill five shallow
wells to test several upper zones in the Field that it believes
will be productive. It then plans to purchase two disposal wells
already in place in the field that were not part of its initial
purchase, drill two large-bore production wells and one additional
disposal well, and start injecting water into the Arbuckle
Formation. If, as anticipated, BDLLC achieves or exceeds its
targeted injection and recovery rates, it estimates that the
$22,000,000 payout will occur during 2010 based upon an oil price
of approximately $50 per barrel. "Now that BDLLC has purchased the
field, we expect to move forward quickly to raise the remaining
$5,275,000 needed to complete the contemplated development
program," noted Mee. "Both Bill Beard and I believe that the
Dilworth Field is the best, and has the most upside potential
relative to the investment required, of any oil deal we've ever
seen. The primary reason we sold McElmo Dome was to provide the
funds to increase our interest in the Dilworth Field, where we
believe there is an opportunity for a far greater return on our
investment. We believe that the purchase and development of the
Dilworth Field will play a key near-term role in the major
turnaround that is underway at our Company, and a fitting adjunct
to the longer-term potential we believe exists in our Geohedral
investment." About The Beard Company The Beard Company creates,
acquires, and/or invests in businesses that management believes
have high growth and/or above-average profit potential and can
enhance shareholder value. The Company will from now on be involved
in oil and gas activities; coal reclamation activities; e-commerce
activities conducted through its starpay(TM) subsidiary; and
minerals exploration and development through its Geohedral
investment. The Company is headquartered in Oklahoma City and its
common stock trades on the OTC Bulletin Board under the symbol
"BRCO". Forward-Looking Statements This document may include
statements that constitute "forward-looking" statements, usually
containing the words "believe", "estimate", "project", "expect",
"anticipate", or similar expressions. Forward-looking statements
inherently involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, the ability to negotiate and execute
contracts in connection with the Company's coal reclamation
activities; the outcome of a lawsuit against Visa; future trends in
commodities prices; financial, geological or mechanical
difficulties affecting Beard Dilworth's or Geohedral's planned
geological work programs; uncertainties surrounding estimates of
mineralized material; and other risks associated with the Company's
business. By making these forward-looking statements, Beard
undertakes no obligation to update these statements for revisions
or changes in the future. For Additional Information, Please
Contact: Herb Mee, Jr., President, at (405) 842-2333 or via email
at or RJ Falkner & Company, Inc., Investor Relations Counsel,
at (800) 377-9893 or via email at DATASOURCE: The Beard Company
CONTACT: Herb Mee, Jr., President of The Beard Company,
+1-405-842-2333, ; or RJ Falkner & Company, Inc., Investor
Relations Counsel, 1-800-377-9893,
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