30 BOPD + 60 BOPD Est. Upside – Distress Sale$ Protected

– Oil well with a 24-hour test at 335 bopd IP has produced at 25-40 bopd (average 30 bopd) with use of a water disposal well on location.

– Payback at 3 years or less, based on most recent production. This is using NET revenue, and is before counting any estimated upside from the re-work program.

– Due to a partnership reorganization, (a former partner had not been paying its share of bills) this primary well was temporarily shut in in August. Due to a desire to retire the debt from the former partner, this is being sold at a much-better-than-usual price for this level of production. All debt will be retired, and production will immediately be restored.

– Production in August was 30 bopd Oil, 500 bbl Water and 30 mcfpd Gas. (The water will be cut down to appx. 200 bwpd as part of a recommended workover program, plugging off one zone that was cut into when drilling).

– Tank battery, gas pipeline, submersible pump and disposal well are in place. This well can immediately be put back online. (Appx. 30 days in, with insertion of the plug, we recommend taking out the submersible pump and replacing it with a 640 Pumpjack and Rods, thereby cutting the electrical bill from $7 – $8000 per month, to appx. $2,000 per month, and very quickly paying for itself).

– An engineering report on this well alone, prepared in 2014 by the major operator which had drilled it, showed 427,468 barrels of reserves, and 49.58 years’ life expectancy.


– The first horizontal well has a second permitted SWD well available to handle increased fluid volume. The major company which had drilled the wells had estimated a production increase of 40-70 additional barrels of oil per day from this well alone, if more fluid could be moved. With the plugging of the zone from which the water is coming, (and none of the oil) the 2nd SWD well may not be needed at all, but is available to us. Using the more conservative number, we estimate an additional 40 bopd from this work.

– Substantial upside exists in a second nearby horizontal well, which can be brought back online at an estimated 20 BOPD, on which work is mostly completed.

– All equipment is installed on this well, with only a 640 pumpjack and rods remaining.

– The disposal well to handle its water is permitted, with tubing and packer already in place.

– There are 2 lease parcels, 320 acres each, with one horizontal well and disposal well on each.

– There is Wolfcamp, San Andres and Strawn up the hole in the horizontal wells. Cemented with full Cement Bond Log.

– An existing vertical well could also be a producer in the Wolfcamp or Strawn, after geological evaluation.

– High specific gravity oil, ranging in the upper 30s to 40.6.

– Low rate of decline, 2-4%.

– All leases are HBP. There has been some intermittent natural production during the time the partnership re-organization was underway.


– 30% WI (minimum) up to 78% WI (maximum) can be made available.

– 78% NRI on the higher-producing HZ well, and 75% on the second HZ well.

– Price above per 1% WI

a) You can take over operations.

b) Operator can continue through a transition period.

c) Operator is willing to stay on, if desired, with a residual interest.

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Date Posted: Thursday, June 20th, 2019