Project A: 2 well recompletion to put back online
Operator Estimates Field has $140 million in the ground at only 40% recovery factor.
Operator Announcement:
3/7/2012:
We have the B-5 well’s alternator repaired and she is pumping plus producing oil as of writing this report. Well is strong with gas drive without sign of water
at this particular time…….Well will produce water at a later date from being a
water drive well. We met with survey, landowner and electrical company and have an agreement where to run the lines. Also, we will get another motor to temporarily run the B-3 well until electrical is completed. Running pipe and bailing sand out of the B-1 well to be able to place a screen at the perforated zone @ 8870-90’ oil area.
Everything is running great and will let you know how the B-5 progresses along.
Great project…..
Regards,
~Operator
Earlier report from field:
Next, started pump again and within 35 minutes well started producing pure 100% oil and no water. This was not a big surprise from experience in Piercement Salt Dome projects. Well has been shut in for 15 years and has accumulated more oil and gas like a new well. We could see pure oil for awhile before water starts back and well settles down.to last known production.Remember, we cannot out live a “Salt Dome” project in two life times that I know of. Look at Spindletop* in Beaumont, Texas. Still pumping oil after 110 years of age. We have opened this excellent project up Monday for investors to join us. Therefore, please contact us if you are interested in participation of this great project.
~Operator
*Spindletop is a salt dome oil field located in the southern portion of Beaumont, Texas in the United States. The Spindletop dome was derived from the Louann Salt evaporite layer of the Jurassic geologic period.[1] On January 10, 1901, a well at Spindletop struck oil ("came in"). The new oil field soon produced more than 100,000 barrels (16,000 m3) of oil per day.[2] Gulf Oil and Texaco, now part of Chevron Corporation, were formed to develop production at Spindletop.[3]
The strike at Spindletop represented a turning point for Texas and the nation. No previously discovered oil field in the world had ever been so productive.[2] The frenzy of oil exploration and the economic development it generated in the state became known as the Texas Oil Boom. The United States soon became the leading oil producer in the world.
Overview:
Operator has identified 12+- productive sands in the Yegua/Cook Mountain formations on the projects leases that either tested and/cored Oil. Operator is using very conservative numbers for the Original Hydrocarbons In Place (OHIP), @ 500 bbls / Ac.ft. for Oil. Although there will be some solution gas coming from these formations there will not be enough establish gas sales at this time.
Merchant Field Reserves
Have identified 238’ of GROSS / 119’ NET PRODUCTIVE SANDS in B-3 and B-5 wells. For reserves estimation, will be using the “Net Productive Sand.”
This is the CLEANEST PORTION of the formations and the most PRODUCTIVE.
ECONOMICS:
MENU ESTIMATION TABLE:
1. 119’ Net X 500BBLS Per Acre of OHIP (Original Hydrocarbons In Place)
2. X 40 total+- acres = 2,380,000 bbls of OHIP.
3. Using 2,380,000 bbls X 40% Recovery Factor = 952,000 bbls Recoverable
4. Total Produced from B-3 & B-5 Wells = - 300,000 bbls Produced
5. Total Recoverable Remaining (Estimated) +652,000 bbls at today's prices and a 70%NRI= $45,640,000 to Working Interest Owners.
ESTIMATED PRODUCTION
Operator is estimating production from both B-3 & B-5 wells as:
1. Daily Production from current open zone is estimated at 70 – 100 bbls per day.*
2. Monthly production of some 2100 – 3000 bbls.*
*Data from some of the new un-perforated zone have produced up forwards of 200 bbls per day of initial production. If one of these “Sweet Spots” occurred, the production figures would increase dramatically. Once again, no natural gas sales are expected on these leases.
For participation details submit online contact form (click here).
3/7/2012:
We have the B-5 well’s alternator repaired and she is pumping plus producing oil as of writing this report. Well is strong with gas drive without sign of water
at this particular time…….Well will produce water at a later date from being a
water drive well. We met with survey, landowner and electrical company and have an agreement where to run the lines. Also, we will get another motor to temporarily run the B-3 well until electrical is completed. Running pipe and bailing sand out of the B-1 well to be able to place a screen at the perforated zone @ 8870-90’ oil area.
Everything is running great and will let you know how the B-5 progresses along.
Great project…..
Regards,
~Operator
Earlier report from field:
Next, started pump again and within 35 minutes well started producing pure 100% oil and no water. This was not a big surprise from experience in Piercement Salt Dome projects. Well has been shut in for 15 years and has accumulated more oil and gas like a new well. We could see pure oil for awhile before water starts back and well settles down.to last known production.Remember, we cannot out live a “Salt Dome” project in two life times that I know of. Look at Spindletop* in Beaumont, Texas. Still pumping oil after 110 years of age. We have opened this excellent project up Monday for investors to join us. Therefore, please contact us if you are interested in participation of this great project.
~Operator
*Spindletop is a salt dome oil field located in the southern portion of Beaumont, Texas in the United States. The Spindletop dome was derived from the Louann Salt evaporite layer of the Jurassic geologic period.[1] On January 10, 1901, a well at Spindletop struck oil ("came in"). The new oil field soon produced more than 100,000 barrels (16,000 m3) of oil per day.[2] Gulf Oil and Texaco, now part of Chevron Corporation, were formed to develop production at Spindletop.[3]
The strike at Spindletop represented a turning point for Texas and the nation. No previously discovered oil field in the world had ever been so productive.[2] The frenzy of oil exploration and the economic development it generated in the state became known as the Texas Oil Boom. The United States soon became the leading oil producer in the world.
Overview:
Operator has identified 12+- productive sands in the Yegua/Cook Mountain formations on the projects leases that either tested and/cored Oil. Operator is using very conservative numbers for the Original Hydrocarbons In Place (OHIP), @ 500 bbls / Ac.ft. for Oil. Although there will be some solution gas coming from these formations there will not be enough establish gas sales at this time.
Merchant Field Reserves
Have identified 238’ of GROSS / 119’ NET PRODUCTIVE SANDS in B-3 and B-5 wells. For reserves estimation, will be using the “Net Productive Sand.”
This is the CLEANEST PORTION of the formations and the most PRODUCTIVE.
ECONOMICS:
MENU ESTIMATION TABLE:
1. 119’ Net X 500BBLS Per Acre of OHIP (Original Hydrocarbons In Place)
2. X 40 total+- acres = 2,380,000 bbls of OHIP.
3. Using 2,380,000 bbls X 40% Recovery Factor = 952,000 bbls Recoverable
4. Total Produced from B-3 & B-5 Wells = - 300,000 bbls Produced
5. Total Recoverable Remaining (Estimated) +652,000 bbls at today's prices and a 70%NRI= $45,640,000 to Working Interest Owners.
ESTIMATED PRODUCTION
Operator is estimating production from both B-3 & B-5 wells as:
1. Daily Production from current open zone is estimated at 70 – 100 bbls per day.*
2. Monthly production of some 2100 – 3000 bbls.*
*Data from some of the new un-perforated zone have produced up forwards of 200 bbls per day of initial production. If one of these “Sweet Spots” occurred, the production figures would increase dramatically. Once again, no natural gas sales are expected on these leases.
For participation details submit online contact form (click here).
