Pricing and Payment Guidelines

HITCHNER EXPLORATION SERVICES LIMITED (HESL)

CONSULTING SERVICES PRODUCT PRICING

January 2016.

(The pricing on this web site is in effect until January 1, 2018)

 

ALL PRICES ARE QUOTED IN UNITED STATES (US) DOLLARS

GST – Goods and Services Tax will be applied to all Canadian based orders

 

Every project is different, so HESL generally quotes cost and time estimates based on the specific objectives of the project, the available data and HESL work load at the time of the quote.  There are certain economies of scale for projects over 50 wells, again based on the available data and project objectives.  Prices are based on the use of the LOGMAP suite of well log analysis and mapping software.  Contact us for more details.

 

GENERALIZED PAYMENT GUIDELINES

 

Project costs will be estimated at the start of the project.  The client will be invoiced on a net 30 days basis with 2% per month penalty on overdue payments.  Currently, HESL accepts cash, money orders or corporate cheques.  VISA and MASTERCARD through PayPal can also be used to settle payments.

 

Every project is different.  Based on the size of the project , the generalized billing guidelines listed below will apply.  The payment guidelines may be modified based on discussions with the client.

 

Analysis Projects less than $5,000.00 will be invoiced immediately upon receipt of the data to be analyzed.

 

From $5,000 to $20,000.00:

 

20% of project cost is due as a down payment and payable at the start of the project

                No work is commenced until the down payment is received

80% of project payable at the end of the project.

 

Over $20,000:  billing will be based on the achievement of specific agreed upon milestones. 

 

                For example:

 

20% of project cost due as a down payment, payable at the start of the project

                No work is commenced until the down payment is received

30% of project at Milestone 1: after digitization, optimization and delivery of basic cross sections

40% of project at Milestone 2: after delivery of well log analysis and mapping

10% of project payable when final report delivered.

 

HESL  will start on a project once the client communicates, sends or transmits a formal go ahead for the project,  once the necessary data to start has been supplied and once the project down payment is received.

FORMAL CONTRACTS

 

Contingent on the cost of the project, HESL generally works with a letter agreement between HESL and the client where the client confirms the work required of HESL, sends HESL the data to be analyzed along with a deposit.  Once the deposit has cleared the bank, a contractual relationship exists and HESL will fill the analysis request of the client with subsequent billing as agreed by the letter agreement.

 

It is expected that for larger projects that a formal contract between HESL and the client be executed.  HESL has a workable Contract and Schedule ‘A’ that provide a good starting point for contractual discussions.  Basically, the Contract specifies the general terms and conditions with the Schedule ‘A’ attached to the Contract which references the specifics of the project.  Please contact us if you would like to review the example contract.

 

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hitchner@nucleus.com