Operations

Investments in Oil and Gas
MPC is continually developing projects within various play areas. MPC retains a significant equity position in these projects (usually 25-75%), with the balance offered to knowledgeable investors and industry participants. While MPC has enjoyed long lasting relationships with these participants, opportunities for participation in various projects do become available from time to time.

MPC has developed an extensive proprietary database. Significant regional geologic work, seismic modeling, statistical analysis, and engineering is conducted in the development of play concepts prior to prospecting.

When MPC develops a typical project, acreage is secured based on specific geologic criteria. Once the acreage is secured a prospectus is constructed. The prospectus includes the following; a geologic, land, and engineering summary, geologic and land maps, an estimate of costs in the form of an Authority For Expenditure (AFE), a participation agreement and joint operating agreement (JOA).

Geologic Map

Exploration efforts are concentrated in "niche" areas where MPC can utilize its local knowledge and expertise. Projects target multi-pay at depths generally from 4000' to 7000'.

MPC manages drilling risk by utilizing 3-D seismic on most of the projects it develops. MPC has participated in an extensive number of 3-D projects and utilizes that experience and analogs in new project development. MPC owns License to an extensive 2-D and 3-D database in Kansas and surrounding areas.

Projects target long life reserves (15-20 years+) and quick pay-outs (36 months or less), rates of return are expected to be no less than 20%.


Sterling Drilling Company

Direct participation in oil and gas is for the risk tolerant investor. Oil and gas investment provides an inflation hedge, as well as diversity to an equity investment portfolio. Tax advantages include a minimum of a 15% depletion deduction on annual income throughout the life of the investment. Drilling costs (intangibles) are 100% tax deductible. All completion (fixed) assets are fully depreciated. Approximately 75% of the initial investment becomes tax deductible in the first year, then almost half of the future income is sheltered by depletion, depreciation and amortization (lease cost and seismic).

For Investment Inquiries, Contact Ryan J. Schweizer, Vice President-Land, at (316)-636-2737 or ryan@mccoypetroleum.com

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P 316-636-2737 F 316-636-2741 - 8080 E. Central Suite 300 - Wichita, KANSAS 67206