Six wells have been acquired.
H&J Sec. 389 and H&J 389 have had all the old pipe and submersible pump removed and sealed off.
All leases have been cleaned and graded level.
Tank Battery including four storage tanks, a knockout tank and a heater-treater have been installed to handle the flow from wells H&J Sec. 389 and H&J 389. All piping connected to the tanks.
Salt water disposal discharge line is connected from the tanks to the disposal facility 1/4 mile away. We have a signed contract from the SWD facility to take our excess water.
Ladders and a catwalk have been attached.
Gate with lock installed at entrance.
All six wells Poison Gas (H2S) tested. Rig anchors tested. Fluid level tested.
The H&J Sec. 389, H&J 389 and three H&J 495 wells have had successful Mechanical Integrity Tests.
All improvements have been freshly painted the same color.
The H&J 495 “D” leases and the H&J 495 JV, holding four wells, have been cleared of tons of junk steel, old tanks, piping and miscellaneous trash.
All work done by top quality contractors.
We have zero debt and approximately $390,000 of assets. (Each of these wells would cost about $3,000,000 to drill today.) The average cost to drill a new well in the Permian Basin is $6-9,000,000.
This first well, the H&J Sec. 389 produced a 5 year average of 62 BOPD when the previous Operator had it.
There is no reason to assume that these wells will not produce similar amounts when we re-open them.