The total capital cost of the Evesham development project will be approximately $75 to $100 million (<$60mm net). At current oil prices (October 2011) the operating netbacks are in excess of $40 per barrel with wells taking a little over a year to pay out. The resulting economics are quite robust and the producing wells should generate enough cash flow going forward for the drilling program to be self-funding through full development.

The Company is now embarked on an aggressive growth development program as its current production estimate in October is 324 boepd (85% oil) with 10 Dina wells now in place in Evesham and a new well at Macklin. Up to three more wells will be drilled in Evesham during Q4 2011.

Currently, plans beyond Evesham include:

  • additional horizontal wells at Macklin and
    • 3 reactivation wells and additional facilities for 1 water disposal well (55% WI)
  • 1 horizontal In Lloydminster, Morgan (55% WI)
  • 1 horizontal in Lloydminster, Islay (85% WI for drilling to earn 55% WI)
  • 1 re-entry in Winter (55% WI)

In addition to the current projects, Tuscany will continue to explore and develop the other 7 oil exploration plays in both Alberta and Saskatchewan.

Tuscany’s longer term goal is to become a 1000 plus BOEPD operator by the end of 2012.