BUDGET 



American Production & Exploration Company 



Detailed Exploration Program (two years) 



Arenoso Basin 



WILDCAT WELLS 



5,000* well @ $130,000 

 6,800' well @ 182,000 

 8,000' well @ 218,000 



CORE DRILLING 



24 crew months @ $15,000 

 SEISMIC SURVEYS 



48 crew months @ $50,000 

 GRAVITY SURVEYS 



24 crew months @ $7,500 

 LEASE PURCHASES 



600,000 acres @ $1.25 bonus, $0.25 commission 



LEASE RENTALS 



400,000 acres @ $0.10 for 2 years 

 200,000 acres @ $0.25 for 1 year 



TEST WELL CONTRIBUTIONS 



$ 530,000 



360,000 



2,400,000 



180,000 



900,000 

 130,000 



950,000 



TOTAL 



$5,450,000 



Figure 41-14, Budget for detailed exploration program. 



