Producing Leases$ Protected

Lease consists of 170 acres HBP, we are selling up to 85% WI 63.75% NRI on entire lease. Two wells currently producing 4-6 bopd and gas is being vented, 10 BWPD from the Lower Strawn and Caddo.

Estimated 120 MBO (thousand) in reserves in 2 wells to be perforated in the Upper Caddo & Strawn, this is recoverable ratio at 20%.

Monthly operating expenses for both leases estimated at $1,100, two shut in wells exist for bringing back online. Wells can increase to 6-8 bopd by monthly backside chemical alone. A full developmental plan by engineers and geologists is already in motion for this asset including fracking it.

This lease has tremendous opportunity. One well is in the Caddo formation producing from approximately 3200’. The other well is producing from the Upper Strawn formation at 2950’. There are numerous zones uphole that can be brought into production, specifically the upper Strawn at 2650’ which is a well-known prolific producer in this area.

Options include Acid job on both wells which could results in gain of 3-6 bopd from each well. Alternatively fracking the Caddo and Strawn would provide a higher net pay and an anticipated 25-35 bopd. There is a natural gas pipeline adjacent to the lease and a small interconnect would allow for the sale of natural gas as well, it is estimated the current natural gas being vented is ~ 8-12 Mcfd. The additional upside with this acquisition is also the other shut in wells, that just by putting them online and acid wash to re-open perforations can add another 5- 10 bopd to the leases production.

Purhcase price includes
2 producing oil and gas wells
2 shut-in oil wells that can be re-entered
2 pump jacks
4 210 tanks
2 vertical separator
1 horizontal seperator

You must be a Buyer to view contact details and location information. Login or Join Now to view additional information and to contact the owner.

Date Posted: Friday, April 29th, 2016