David Locke: Okay. So that was going to be my next question, which is like how do they — how do you apportion what comes from Jackson Dome and what comes from industrial sources? Or is that, again, sort of like a Exxon accounting thing and they’ll figure out a way to allocate stuff to take the most money themselves.
Kelly Loyd: Well, that — look, let’s be honest, it remains to be seen. But — again, when I spoke to the folks over there, they were — again, had every expectation that it will get certified, so.
David Locke: And any sort of like round expectations on when that might happen?
Kelly Loyd: [indiscernible]
David Locke: Thanks.
Operator: The next question comes from John Bair of Ascend Wealth Advisors. Please go ahead.
John Bair: Good morning.
Kelly Loyd: Good morning to you, John.
John Bair: How are you? A couple of my questions have been answered — asked and answered. One I had was on Chaveroo wells. What’s the cost per well on those? What’s your AFE cost on that?
Kelly Loyd: AFE is $3 million.
John Bair: Okay. So half of that…
Kelly Loyd: Growth. Correct.
John Bair: Yes. Okay. And then you also mentioned, there were two down dip wells that you indicated we’re working favorably. What kind of rates are you — what kind of increase in production on that?
Kelly Loyd: Yes. So — like I said, it’s not going to be a huge number, right? We think the two combined will ultimately peak at around 250-ish barrels a day gross. So call it, quarter of that for us on and again, the economics on it, though, for what they cost and the return, we think these are very nice return projects. But more importantly, one of them was more of an infill well sort of within a pattern, trying to see if you could get a little bit of additional unswept area. And the other one was more down dip which goes along with some of our belief that the CO2 injection over the years may have pushed some oil down dip. And we’re — like I said, it’s early days, but we’re pretty happy with the results, and I know that the team over there is as well. So this could certainly lead to more locations. We don’t have any on the books when we schedule them to be able to get into that, but we do hope it can lead to some more down-dip locations.
John Bair: So I know there’s an area, it’s been out there, I forget if it’s Section 5 or something
Kelly Loyd: Section 5.
John Bair: Yeah, that had some potential. And – so —
Kelly Loyd: This is not that, John, to be clear, this is elsewhere.
John Bair: Right. No, I understand, what I was getting at is that you’ve got some area on Deli that was prospective that has not been addressed, I guess, for various reasons with Denbury’s issue and so forth. Do you sense that Exxon will continue to work maybe to do those kind of infills? Or is that too small for them to really spend capital?
Kelly Loyd: So first of all, I think what Exxon is going to do is what makes the most sense. And I think they have to look at fields in myopic sort of since. So I do think they will try and optimize each of the fields they have. So — with regards to Test Site 5, I can say this. When Denbury was the operator, they were resistant towards going there. They do we’ve all done the work, and we all think it’s a very economic project. But for reasons related to past issues, Denbury was reluctant to go there. Do I all I know is there’s a — it could be exactly the same chance or a better chance with Exxon going there. And we have not yet had the chance to sit down with them in a formal capacity and go through plans regarding Test Site 5. Obviously, that is in the works, and we’re going to try and do that as soon as we can. But yes, I would just say, look, if it was super low percent chance before. It’s either the same or better now.
John Bair: Fair enough.
John Bair: Last quick question. Did you have any CapEx obligation for that core vet processing plant? Or is that all –?
Ryan Stash: No, that is not associated. We don’t — that’s all third parties
John Bair: Okay. That’s all.
Ryan Stash: And the same thing, yeah, with the other compressor station in the Wilson. That’s actually one of the stations in the Wilson that has had issues in the past, right. Okay.
John Bair: Very good. Thank you for taking my questions.
Kelly Loyd: Absolutely. Thank you.
Operator: [Operator Instructions] This concludes our question and answer session. I would like to turn the conference back over to now Kelly Loyd for any closing remarks.
Kelly Loyd: Thank you. Just want to tell everybody we really appreciate you joining us today, and we are available if you need us. Please give us a call. The numbers on the website. Thanks, again.
Operator: Thank you. The conference is now concluded. Thank you for attending today’s presentation. And you may now disconnect.
