”The offering of the Little Lake State 16 Well 1 is an extremely rare, one of-a-kind opportunity. In fact, everything about this well hits the highest of marks within the acquisition protocols Weaver and its team of experts have put into place!
Just take look at the economics to see the real potential this investment can offer even at $80 oil and $5.50 gas.
2.5% Equity – $30,000
Potential IDC Tax Deduction – $12,000
True Cost – $18,000
250 MCF & 175 BBL – Monthly $3,705 – Yearly $44,464 – 7 Month Payout
200 MCF & 100 BBL – Monthly $2,193 – Yearly $26,316 – 11 Month Payout
100 MCF & 50 BBL – Monthly $1,096 – Yearly $13,158 – 22 Month Payout
These are not just estimates but based on verifiable production on the same lease on wells also drilled by McElvain.
McElvain, the owner and driller of the Little Lake well, successfully drilled and completed to produce multiple Delaware wells: The McElvain 6,7,8 and 9. The cumulative oil production of well 7 alone was over 197 MBO and 270 MMCF of gas.
The well was successfully drilled to a depth of 5,950 ft. with hydrocarbon shows similar to that of its successor Delaware wells, previously drilled by the same owner, into the same producing oil sand.
Upon completion of the drilling operations, and in the interim of releasing the drilling rig to prepare for the fracking of the well and arrival of the completion rig, the market of oil prices began to slide, eventually ending in a crash.
Like many oil companies during this time: difficult decisions faced them. With over 4,000 producing wells, including horizontals producing as high as 600-800 BOPD initially in pay status, the company made the call to cease operations in New Mexico and draw back to its home state during the pandemic.
A modern-day financial “tsunami” had occurred. Now, we’ve come through that to the other side. Having acquired the Little Lake well, for fractions of the cost, with oil prices near a 14 year high!
The Little Lake lease is a 160-acre oil and gas lease located near Maljamar, New Mexico with one well bore included (Little Lake 16 State Well 1) and an option for picking up the adjacent 160 acres for further development.
We include production reports from the New Mexico OCD website and, for those who request, logs which details the presence of oil and gas all throughout the Little Lake well.
State Lease # VB15820000
Field: Young North (Delaware)
Location: SENW Section 16, T18S, R32E
1,900’ FNL and 2,100’ FWL
Lea County, New Mexico
Lat. – N32° 44’58.45” Long – W103° 46’23.12”
NMSPCE – N 636880.8’, E 713580.1’ (NAD-83)
Initial Delaware Completion Procedure
Elevation: GLE = 3,787’ KBE = 3,805’ (18’ KB)
Rustler 1115 Depth
SURFACE CASING 1129 Depth
Salt 1228 Depth
Base of Salt 2542 Depth
Yates 2720 Depth
Seven Rivers 3114 Depth Proposed Final Perfs 3118 – 3130’
Queen 3832 Depth Offset Well Injection Zone (sour)
Penrose 4097 Depth
San Andres 4445 Depth
Delaware 4725 Depth
1st Delaware Sand 4734 Depth Proposed 2nd Perfs 4751 – 4756’
2nd Delaware Sand 4816 Depth Proposed 1st Perfs 4853 – 4868’
Anticipated PBTD 5001 Depth”
- Category : Drilling Programs