Inform Worldwide owns an 80% working interest in production from two oil and gas projects that are currently producing about 60 BOPD and 155 MCFPD. These values amount to an approximated annual production of $1.4 million in oil and $240,000 in natural gas, for a total $1.6 million. Inform Worldwide’s 80% working interest would amount to approximately $1.3 million.
The Company believes that there is potential to double production by re-drilling 22 inactive wells on the Cornellus and Roark prospects. If this would happen, the value of production would surpass $3.2 million next year, with Inform Worldwide’s ownership interest exceeding $2.5 million.
The discounted net present value of the Company’s total potential oil and gas production is estimated to be more than $12 million. The value of the undiscounted cash flows that might be generated from proved developed and undeveloped reserves is estimated over $34 million. The fact that the Company has already purchased coal mining equipment indicates that Inform Worldwide is likely to begin coal production soon.
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