In August 2012, Hallwood closed a transaction in the Cook Inlet of Alaska whereby our affiliate BlueCrest Energy Inc. acquired Proved + Probable reserves from Pioneer Natural Resources.
In 2013, the Cosmopolitan State #1 well was completed. The results delineated newly-discovered oil and gas pay zones over a 5,000-foot interval with more than 700 feet of net pay. Reserves are 79% oil, 21% gas.
An updated reserve report dated July 2016 prepared by independent engineers Ryder Scott with Brent oil pricing and assuming a lifetime non-escalated average projected oil price of $58 per bbl. shows proved undeveloped (1P) reserves of 79 million bbl. with a PV10 value of $1.384 billion, proved and probable (2P) reserves of 123 million bbl. with a PV-10 value of $1.885 billion and proved, probable and possible (3P) reserves of 258 million bbl. with a PV-10 value of $3.409 billion.
Hallwood Financial owns a fully diluted 17% beneficial interest in BlueCrest.