Item 8.01. Other Events
On February 1, 2019, Isramco, Inc. (the "Company") received an evaluation
summary (the "CGA Evaluation Summary") prepared by Cawley, Gillespie and
Associates, Inc. ("CGA"), a third-party petroleum consulting firm that provides
the Company with reports concerning its proved reserves in the United States.
The CGA Evaluation Summary provides estimates of certain proved developed
producing reserves and forecasts of economics attributable to the Company and
certain of its subsidiaries as of December 31, 2018.
The Company has additionally prepared related unaudited estimates of its proved
reserves and forecasts of economics attributable to the Company as of December
31, 2018 (the "Company Estimate Report"). The estimates of proved reserves and
the estimated forecasts of economics attributable to the Company set forth in
the Company Estimate Report were prepared by the Company's internal engineering
and financial staff and have not been prepared, audited, or reviewed by an
independent petroleum engineer or accountant. Although the Company believes its
internal estimates of proved reserves and forecasts of economics attributable to
the Company set forth in the Company Estimate Report are prepared on a basis
consistent with the methodology employed by CGA, the proved reserves estimates
and forecasts of economics attributable to the Company as of December 31, 2018
of CGA could deviate from the range of the Company's internal estimates.
There are numerous uncertainties inherent in estimating the quantities of proved
reserves and projecting future rates of production. Further, the volumes
considered to be commercially recoverable fluctuate with changes in prices and
operating costs. Reserve estimates are inherently imprecise and estimates of new
discoveries are more imprecise than those of currently producing oil and natural
gas properties. Accordingly, these estimates are expected to change as
additional information becomes available in the future.
The foregoing descriptions of the CGA Evaluation Summary and the Company
Estimate Report as set forth in this Item 8.01 are summaries only and are
qualified in all respects by the CGA Evaluation Summary and the Company Estimate
Report, copies of which are attached hereto as Exhibit 10.1 and Exhibit 10.2 and
are incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
10.1 Evaluation Summary as of December 31, 2018 from Cawley, Gillespie &
10.2 Company Estimate Report as of December 31, 2018
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