Re: Who is going to back them in this exploration
Do you think oil prices will remain low forever?
My view is not short term.
JW@KSC
P.S. Granted Oil prices are low, but revenues are there.
Borchers No. 1 Well in Gonzales County, Texas
Production on this well has totaled at present 1800 barrels of oil since start-up on Oct. 2, and is set to attain a final productive capacity of up to 300 barrels of oil equivalent per day plus approximately 200 to 300 barrels of salt water per day. This well, which is a horizontal Austin Chalk producer, has reserves estimated by statistical methods to total in excess of 330,000 barrels of recoverable oil. The well has produced up to the present time a total of 180,000 barrels of oil. This production level has been reached by means of a technique utilizing a submersible high speed hydraulic jet pump. It is expected that this well will plateau in the 200 to 300 barrels of oil per day production range.
Borchers No. 2 Well, Gonzales County, Texas
This well is currently inactive and previously produced 18,090 BO in the Austin Chalk formation. The plan is to treat, re-equip and return the well to production. Based on well history a production range between 80-120 BO/D is expected.
The maximum cost is projected at $75,000 with a 2 to 3 month payback at $18.00 BBL
Parker No. 1 Well, Gonzales County, Texas
This well is currently inactive and previously produced 13,294 BO in the Austin Chalk formation. The plan is to replace a head gasket on the engine and return the well to service utilizing a submersible quituplex hydraulic jet pump for about 90 days to evaluate productive potential.
The well may need reboring to remove suspected bridges in the horizontal leg to bring it back to full production. Based on
well history a production range of 60 to 240 B/O/D is expected. The estimated cost is $40,000 and an additional $60,000 if a rebore is required with a payback of 2 to 6 months at $18.00/BBL.
Clearlake Hunt Club No. 1 Well, Brazos County, Texas
Currently the well is producing 5 B/O/D (barrels of oil per day) from an Austin Chalk formation as the drilled horizontal section was relatively short and missed the target zone and all fracture systems. The wellbore encountered abundant amounts of volcanic ash which has resulted in partial plugging of the well. Additionally in this area three offsetting vertical wells were completed producing from the Buda Limestone and one from the Georgetown Formation.
The plan is to drill a new and properly placed horizontal wellbore which should result in a completion more typical of this area consisting of several 100 to +1000 B/O/D. The cost of the extension drilling is $300,000 resulting in an estimated 600 B/O/D, giving this project payback in 2 to 4 months at $18/BBL price
Lawhorn-Lawhorn No. 1 Well, Gum Branch Field, Scott County, Tennessee
This well is currently suspended in the Ft. Payne Limestone formation. The plan is to re-enter the existing vertical well and low side abandoned horizontal section and proceed to drill dual 1200 foot laterals. It is expected to develop un-drained portions of the reef resulting in producing rates and cumulative production exceeding existing vertical wells. Good vertical wells in production here produce at several hundred B/O/D.
The estimated production is expected to be 400 B/O/D with a cost of $75,000 and a payback of 1 to 4 months at $18.00/BBL.
DOMESTIC OIL - NEW TEXAS DISCOVERY
The company recently announced the discovery of a large reef structure located in Gonzales County, Texas. This new structure which has been identified utilizing 2D seismic data is believed to contain 10 million barrels of oil condensate which would be valued at approximately $150 million USD to the company's bottom line. Nevtah management has the geological team currently acquiring additional leases in the immediate area and will be doing additional 3D seismic later in the 1998
work season. |
