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Week of November 21, 2011 Volume 1, No. 9

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Oxy ramping up quickly in California shales
Driving domestic growth with fast paybacks and running room

195 wells, avg. IP 350 boe/d
Full Presentation

200K acres de-risked
Full Presentation

Will southern California oilfields boom again like the Permian basin? Perhaps! With PLS’ docFinder database, we learned the latest on the California shale resource play. In 10 years, California “shale” could become Oxy’s largest business unit worldwide. This year, Oxy will drill 195 shale wells in California with well costs of $3.5 MM, and dropping, and IP’s averaging 300 to 400 boe/d — mostly oil. The California program added 6,000 boe/d to Oxy in the 3Q alone and was responsible for “a large portion” of their domestic production growth! The source rock feeding California’s giant oilfields appears to be delivering with potential of 15 billion barrels and EUR/well of 555 Mbo. Other players include Oxy, Aera, Chevron, Venoco, Seneca, Berry, Warren and new players including Hess, Chesapeake, Zodiac.
PLS now provides you with the ability to QUICKLY find answers you need including:
• Pricing — Did you know California oil is at a large premium to WTI?
• Players— Who are the largest California producers?
• Geology — California stacked resource targets + conventional plays
• Curves — Type curves from Oxy and Venoco and Underground Energy
Did you know?
Oil company execs, investors and bankers know well the value of comptetive reconnaissance. PLS’ new docFinder database is a valuable DATA source to stay current on industry and company developments. DocFinder lets you quickly view and compare type curves, oil price differentials, drilling costs, operating costs, CAPEX plans past, present and future, and other critical data.
Start your free trial to docFinder today!

Making money in the Bakken is all about picking the ‘only the best companies’, and even more important the ‘right drilling companies’ who have permitted leases with unit designations and at least 80% leased acreage. North Dakota is a ‘forced pooling’ state and as such you are forced to drill a well when you have a company or drilling rig operating in a specific area with 80% of the working interest ownership. The net result of such a ruling or law is you get your wells drilled. Industry, or what are called ‘heads-up investors’ who don’t put-up funds are placed into a ‘non-consent category’ and essentially ‘lose their rights to particpate’; until investors who put-up funds are paid back, and usually several times with most ‘industry operating Agreements’.

The most successful Bakken investors and the best oil companies who drill wells in the huge oil play will often invest in multiple deals, and in many horizontal wells with only reputable major oil companies, or large independants who have very strong balance sheets. The reason is simple, there are only about 200 drilling rigs in North Dakota right now, and not all of them are owned by companies with adequate capitialization, or the most experienced personnel. 78% to 81.25% net revenue interest leases are the norm…and anything less should be scrutinized carefully, as someone is getting a ‘royalty’ and not typically for putting-up any money for it. Premimums are paid for the following leashold interests: Wells permitted, ‘Spudded’ or drilling has begun with a rig on location, drilling in progress, waiting for completion or FRAC, and finally wells in production, meaning someone has not met the terms of the drilling and funding contract, and had to drop-out.

If you would like to know more, and want to participate as an accredited investor in our biggest oil boom since Alaska, let me know with a phone call, or email with your questions.

Sincerely,

Dennis W. Stutes, CEO
New Oil & Gas Technologies & Discoveries, Inc.
408 975 0800 Cell: 805 701 7761

Dear Investors, its hard to believe, but the 2011 tax season is now here. Oil & gas drilling programs are still the best tax write-offs available, and if you have a great place to drill oil wells to make excellent returns on your potential ‘lost money to the IRS’, now is the time to do your research. As many of you know the ‘Bakken Shale Formation’ in North Dakota is our new ‘oil boom’ oil play. According to the records, over 6,000 wells have been drilled in North Dakota from 2000 to 2009. The hit rate has been 100%. I didn’t say this, the recent story on Fox news and other industry people have confirmed it. We expect to drill up to 45,000 wells in the Bakken Shale Formation during the next 15-20 years, and most will be horizontal wells with ‘staged fracing’ to recover about a million barrels of oil per location, and typically will be drilled on 640 acre spacing. The cost for acreage is high, and the cost of drilling is high. The likely cost for acreage and to drill & complete a horizontal well is going to be about six million ‘un-promoted’. But the wells can do 15 million or more per year in gross cash flow, and flow for a number of years while declining, and depleting. Not bad for money you invest to get tax write-offs, and a big reduction on your at risk dollars, or your gross taxable income…or most importantly, with money you would send to the IRS, and never receive a return on.

Our company is optioning acreage now in the Bakken Shale, and we plan to begin drilling operations as our funding is available. Call or email me with questions, and to inquire about how you can participate. Accredited investors only please!