Project Criteria

The initial project acquisition focus will be acquiring onshore oil and/or gas projects that are either in production, with some development upside, or are capable of generating positive cash flow within 12 months of acquisition.

PUD Resource Plays

  • These are defined as prospects with existing or historical production history that have to be developed. These plays are low in risk and have a higher chance of success in general
  • Entry costs are usually higher, due to the lower technical risk
  • They require due diligence to understand pay distribution, impact of production rates and completion practices
  • Mustang will pursue these opportunities where the chance of success is considered to be greater than 75% based on its technical criteria.

Re-Completion and Behind Pipe Reserves

  • These are defined as prospects with existing or historical production history that have to been overlooked. These plays are again lower in risk and have a higher chance of success in general
  • The key is to understand the prior development and completion history
  • The biggest risk is re-entering old wells and the under-reporting of completion activities of prior operators and completion practices
  • Mustang will pursue these opportunities where the chance of success is considered to be greater than 65% based on its technical criteria.

Field Offset & Current Production Trends

  • These are defined as new prospects in proven producing trends, offsetting existing discoveries. These plays are lower in risk and have a higher chance of success in general
  • The key geological elements of trap reservoir and seal should be well documented
  • Mustang will pursue these opportunities in proven producing areas where the chance of success is considered to be between 50% and 75% based on its technical criteria.

Exploration Plays

  • These are defined as drilling new prospects in proven producing trends or plays
  • Exploration has a wide distribution of target types. It can mean “rank” wildcat drilling in a basin or area with little exploration history, or it could refer to very high cost offshore exploration or geographically challenging plays in mountain belts or arctic
  • In the initial stages of its development Mustang will not be considering these types of plays.