]> SA Advisory

Natural Gas

We are continuing to be very active in Natural Gas drilling joint ventures. Our successes to date have been excellent. We appreciate all the letter commending our efforts. We will continue to search out programs that offer investors limited risk with huge upside potential. We believe in Natural Gas and anticipate a very bright future for its uses. By diversifying into these programs, investors can receive the benefits of monthly cash flow, tax free income, inflation protection, and the most favorable drilling environment we have seen in over a decade.

Well Summary

Garcia and Benevides Garcia about $502.00 for each $1,000. Benevides about $210 per $1,000 has been returned in the distributions. It is expected that following the Christico buy-out that has been announced, we will receive a lump sum of back revenues owed to us. This lump sum should almost equal the amount we have received in revenue to date. This will almost double our return to date. Very bullish development.
Garcia -has paid $637.85/$1,000 invested.
Benevides - has paid $281/$1,000 invested. We anticipate that the six months of oil condensate/well will be mailed to partners by August 15, 1995. Should amount to a meaningful distribution.
N.E. Erick - Dryden - This well has excellent pressures and should produce between 400-500 mcf per day. Pipeline construction has now been completed and production numbers will be out shortly. The payout on the Dryden well is expected to be around three years, including the funds going toward the NorthEast Erick. Similar wells in the area have about 8 to 10 year life. This return is good considering the original well in another field, the Northeast Erick, was a dry hole.
Guerra C-2 - The Guerra C-2 began selling gas on February 2, 1995 and has so far produced enough to return about $80.00 for each $1,000 participation. They are currently doing a bottom hole pressure test in order to step up the production. Payout on this well should be under 25 months, if all goes well.
Flack #1 - Gas sales from this well began on July 7. Production has begun at about 4,400 mcf per day and will gradually be stepped up until it reaches 5,000 mcf per day. At 5,000 mcf, payout on this well will be about 13.6 months and checks at about $73 a month for each $1,000 participated. This well has numerous other productive sands and is expected to return about 8 times to the partners over its lifetime. A super well by any measure.
Glomp 1 - The Glomp 1 is an offset well to the Flack #1. Pressures and production are similar to that of the Flack. It is also structurally high and therefore it could be a better well. The pipeline and production facilities had already been completed. This has allowed gas sales to begin on Monday, July 24th. We expect good numbers from this well. Initial production was 2,000 mcf/day and 130 barrels of condensate - anticipate production to reach 5,000 mcf/day near term. A twin of the highly successful Flack #1. We anticipate that a third well in this field will be drilled during early October, 1995 and believe similar results will be attained. We are extremely excited about this field's potential.
For more information on any of the existing projects or information on future opportunities, especially the "third" well, please call Chauncey Buck at 1-800-746-4GAS (minimum investment $3,000).

S. A. Advisory's Undervalued Hotline
1-900-990-0909 Ext. 192

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