Coleman County, Texas – Three well rework/recompletion project:
In October, 2014 the Company entered into an agreement to acquire a 75% working interest (56.25% Net Revenue Interest) in the J.E. Richey lease. The J.E Richey lease is located in a very prolific multiple pay area originally discovered by ARCO in the early 1980’s. This lease area has six known productive formations within the immediate area. This lease offers a conservative approach to building oil and gas production through re-working and re- completing existing wells coupled with spacing allowable for new drilling of 2 or more wells.
The existing three wells on the lease are fully equipped with downhole pumps, rods, tubing, pump jacks, well head and surface equipment including flow lines, production tanks, meter connections and gas gathering pipelines of particular interest on this lease is the Concho Richey #1 well which is located due west of the Olympia Hale #1 well that has produced more than 65,000 BBLS and over 160 MMCFG from the Gray formation. The Gray formation has not been opened in the Concho Richey well and its log characteristics are very similar to those of the Olympia Hale well.
In March, 2015 the Company entered into an agreement to sell a 37.5% (28.125% NRI) working interest in the 3 wells on the lease for $180,000. The funds are to be used towards the turnkey costs of placing the three wells into production
In May 2015 the Company commenced reworking the J. E. Richey #1 & #3 wells. The following photos were taken of the work being conducted on the J.E. Richey #1 & 3 wells.
The reworking of the J.E. Richey #1 & 3 wells has been completed and these wells are set for production. Work on the third well, the Concho Richey #1 is scheduled for the first week of June, 2015. Upon completion of the work on the Concho Richey #1, the company will start producing these three oil and gas wells into the production tanks and gas gathering pipelines on the lease.