As of January 1, 2009, Termo had net proved reserves of 4.1 million barrels of oil and 6.5 BCF of gas with a future 9% PW of approximately $74.1 million based on average wellhead prices of $44.45/bbl and $5.01/Mcf. These values are based on pricing prescribed by J.P. Morgan-Chase Bank, the facilitator of Termo's credit line. The Company also holds assets in real estate associated with oil and gas production. Funding has been provided by internally generated cash flow, bank barrowing and outside private investors to assist with oil and gas exploration.
Termo currently operates more than 175 wells, with current operated production of approximately 1,600 BOPD and 4,000 MCFPD. Termo's average working interest in these properties is approximately 55% with the remaining interests owned by outside investors. Termo's net interests in these operated properties contribute 70% of the total value of the Company's proved developed producing reserves. Termo's non-operated properties and royalty interests contribute the other 30% of the value of the Company's proved developed producing reserves. .The Termo Company today is an established operator with a proven track record. By adapting to the ever-changing market environment, the Company has continued to grow and prosper through more than seven decades. The Company is well positioned to execute its growth strategy by exploiting its existing properties, acquiring both new properties and additional royalty/working interests in its existing properties, and exploring for new reserves in proximity to its current operations. A strong management team is in place with six professionals, including three petroleum engineers, having an aggregate of more than 100 years experience in the oil and gas industry.
