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Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Taylor who wrote (3740)	7/23/1998 2:39:00 AM
From: Steve	Respond to of 4276

The wells that Oilex holds have been stripped of their tubing, sucker rods, rod pumps, pumping units, etc. Though test seperator, heater treater, oil storage tanks, water disposal pumps, LACT unit remain in place the costs of re-implementing rod lift systems on these 600 wells would run about $24 million at current prices as per DOE costing as follows: Per well: Tubing 6,270 Rods 2,300 Pumps 1,400 Pumping Equipment 30,510 ========================= Total: 40,480 When you consider that production swabbers properly implemented and managed and maintained can accomplish this for $3.75 million you clearly see the economic advantage for these marginal wells. New wells that Oilex drills will use a variety of lifting methods, gas lift, hydraulic lift, rod lift or production swabbing. You only want to use portable production swabbing on low volume wells and occasionally swab out higher production wells to prevent paraffin build up. Yes, a swabber can partially replace a work over rig. Most operators have a mix of wells and portable production swabbing is a good fit as an additional tool to pay closer attention to their marginal wells that usually get abandoned far too soon. The problem with the earlier designs of portable production swabbers was with their reliability and endurance. ORS swabbers have been designed to last 7-10 years between rebuilds with proper maintenance.