March is upon us, and many of our investors are asking, “What’s the latest and greatest from the fields?”
We have been busy working on development of new and existing wells, and finally have some time to dedicate to our online presence, here is a detailed overview of what’s the latest oil news in Oklahoma:
- On the Stotts Lease
- We have swapped out the submersible pump and also have done remedial work on the disposal well. Our field representative met with the engineer for the electric company and are planning to install phase 3 power.This will cut electric cost considerably as well as minimizing down time. This lease has three wells that are producing between 65 – 75 bopd.
- North Perkins Lease
- We have been resuming day to day operations. Location has been staked out and mapped for the next drilling prospect. Soon, weather permitting, we will be moving equipment to the site location, and our goal is to start drilling by May 15th, 2011 on this lease.
- Kay County Lease
- Carmichael well is in production. We have hooked up a natural gas compressor the compress gas to get into transmission system. This will also relieve back pressure on the well that will increase production.
- Overman Well: This well was put into production last week. We developed a flow line leak. So we have had to replace the 1500fg of steel line with 1500fg of poly pipe that will not deteriorate. We have located existing seismic data; these lines were shot on the section line of the property. We are geographically evaluating whether these will be sufficient or if we need to shoot a line down the property. We will have these evaluated shortly.
- Huckery Well- This lease will have pulling unit in by the end of the week to install the submersible pump. We are expecting this well to do well. We have heard from an engineer that with fracing this well, it can produce approximately 40 bopd itself. We are also deciding to do a horizontal on this lease, we are going to do a 3d-seismic and decide is this is the best method to take.
- North Stone Bluff Lease:
- We are now finishing the engineering to decide where water placement for injection. Down hole is back to 220 lbs which is original down whole pressure. Also deciding which areas to inject more nitrogen.
We still have 15 plus wells that need working over.
- Osage Lease:
- We have filed for 4 drilling permits, but since this property lies in Osage reservation there has to be an agricultural study done. This should be done by the first of June. We will start drilling soon after that.
We have purchased a Drilling rig, which is located in Austin Texas that will be moved to the Weleetka yard. We have a few mechanical changes that need to be made to make it more adaptable for our area. This year we plan to drill 8 new wells; the first one will be on the North Skinner lease, and theses wells typically come in between 200 – 300 bopd. After drilling the North Skinner, then we want to drill the Stotts #8 and we anticipate this well to come online at double what Stotts #7 is doing, so it should do 100 bopd itself.
After drilling Stotts #8, we want to go onto the Osage lease and drill 4 brand new wells with an air rig and these wells typically come in from 100 to 200 bopd. These wells can be very profitable because to drill and complete will cost approximately $125,000 per well, so there is plenty of room for profit.