Our project is to re-open oil wells that have been abandoned due to the previous owners, going out of business for reasons that have nothing to do with the quality of the wells. These reasons could be: Death, illness, bankruptcy, legal problems, old age or any number of other personal reasons.
We look for wells that were producing 20 BOPD or more. We are not interested in acquiring any wells that produced less than 20 BOPD.
We acquire the wells and then do the work necessary to clean them up and get them producing again.
We are looking for the easiest, fastest and cheapest way to produce oil.
If these wells produce half of what they produced for the past Operator, they will give us approximately a 50% annual return at the current price of oil. If they produce 1/4 of the past Operators production, they will give us approximately a 25% annual return at current oil prices.
To date, we have spent approximately $1,300,000 and will spend an additional $100,000 to $200,000 to start producing.
It may not be the best returns expected with oil wells, but it works for us.