Molori Energy – Funded and Ready to Commence Drilling, July 20 2017 – CEO Joel Dumaresq Breaks Down the News

The RBL is like adding accelerant to a fire – as you drill and discover additional oil and reserves, the RBL offers up additional inexpensive capital to drill additional wells to add even more reserves. Best of all the RBL acts as a replacement for equity which typically is more expensive and dilutive, truly this is the way to build a substantial oil and gas company.

    • The Reserve-Based Loan “RBL” is a lost cost (approximately 4.25% interest) facility that provides Molori and its Texas based partner Ponderosa Energy with up to USD $5M in capital to grow our production and reserves. It’s extraordinary that after just one year of building reserves and production, Molori and Ponderosa have been able to secure a low cost loan facility and further demonstrates the potential that exists on our collective acreage.

    • We are presently funded for our first 3 wells where we intend to testthe Red Cave formation in the vicinity of our current leases in the Texas Panhandle. Along with our partners at Ponderosa, we believe that the Red Cave could offer the same level of explosive upside that has captivated the oil industry in the Permian Basin to the south of us.

    • By employing the latest technologies, which in recent years have led to the discovery of billions of barrels of reserves in the Permian, we are confident that Molori and Ponderosa can be at the forefront of the next great onshore exploration opportunity in continental North America.

    • To the south of our Thompson leases in Moore County, Texas, a competitor has been quietly demonstrating the potential in the Red Cave.  From data available through the Texas Railway Commission, we’ve been able to verify that by employing large scale fracks, this competitor has drilled 30 or more successful wells into the Red Cave in the past year with initial production (“IP”) rates of between 30 and 100 barrels of oil equivalent per well.

    • Molori and Ponderosa presently have over 550 well locations available and identified. Of course there’s no certainty that we will have the same success as our southern neighbor. However, after completing an exhaustive internal study of historic well logs on our present leases, we do feel that the geology is consistent and that the opportunity is comparable.

    • From the outset, Molori has focused upon its recompletion business to build a ‘balance sheet’ from which we can now pursue an exploration program that has the capacity to transform the company.  While we continue to methodically build our reserves and production through the well workovers, we are now setting the landscape to capitalize upon the very real potential to build our reserves and production by a factor of where they now stand.

    • We are hopeful that our shareholders will within the next year experience the full potential this play presents and we would like to assure them of our commitment to keeping them well-apprised and informed of our progress.