Key Factors In Minc Oil Wells
These wells were shut in due to business problems of the past Operator and not mechanical problems of the wells.
Wells are easily accessible, very close to a paved road.
Located in the Permian Basin, the first or second most productive area in the continental US. There are 85,000 oil wells in the Permian Basin.
Contractor and professional support services are readily available.
Wells are approximately 2 miles deep. Cost to drill new wells would be about $3-5 million for each well.
Average oil well production in the Permian Basin is 5 barrels per day (BOPD). These wells averaged 70 BOPD in the 5 years that the past Operator had them.
All wells have been opened and cleaned of calcite deposits on the casing and tubing pipes.
Four wells had a “Mechanical Integrity Test” to prove there are no holes or leaks in the casing pipe.
Wells have been tested for poison gas, stability of rig anchors and fluid levels.
A saltwater disposal facility (SWD) is close by and accessible to these wells. The H&J Sec. 389 and the H&J 389 are approximately ¼ mile from a SWD and does have a buried pipe from the wells connected to the SWD facility. We have a contract with the SWD facility to take our water.
H&J Sec. 389 and H&J 389 have a new tank battery installed. All that’s needed to open the well is a submersible pump, REDA cable, electric control panel, transformers and some labor.
We have spent a little over $1 million so far.
The income from the first well should pay to open the second well and the income from the first and second wells will pay to open the remaining 4 wells.
All wells are drilled down through at least 3 separate production formations, each with a history of high production.
With the amount of acreage we have, we can drill 33 more new wells if we choose to. (One well per 40 acres into each zone.)
These are long term production zones, each zone able to produce for 40-60 years in some formations and 80-100 years in the Devonian formation.
Each well has produced approximately 1 million barrels of oil and should produce the same in the future.
There are many other wells with high production all within easy walking distance of the 4 H&J 495 wells.
We are in full compliance with the Railroad Commission of Texas (RRC).