”Five Equipped Wells on 250 Acres
This is a two-lease package of abutting leases that are held by current production
There are two wells currently producing just under 500 barrels per year.
There are three additional equipped wells that need to be fully reworked.
This lease package belonged to one of our former drillers and was his special project. Unfortunately, he passed away several years ago from a farming accident. This was just prior to the decline in the price of oil.
Over the years, these leases have had four or five large wells hit on them with the best one coming in at 200 barrels per day and several others in the 30 to 60 barrel per day range. The entire center zone of the leases has never been drilled and with oil hit on all sides of it, we fully expect some nice wells to be hit here.
Very nice landowners that welcome further development of the leases. Each lease
held by production with one well currently producing on each lease. Current total production of 1.3 barrels of oil per day from wells that haven’t been serviced for about five years.
With the existing production (2 wells) rework potential (3 wells) and tremendous drilling potential it is easy to see the upside on this project.
About us: Our company is run by hands on oil people that have a family history of operating in this region of Kentucky for multiple generations. We’re large enough so that we can get the job done but still small enough that you can call and talk to the guy in charge.
Cost for the lease package is $118,000.
This additional work can be done at the discretion of the new owner but would be priced as follows:
Cost to service the two producing wells is 20,000 and to totally rework and update the three equipped, non-pumping wells is $60,000.
Our attorney will prepare and file all of the necessary documentation to reflect you as being the owner of these leases.
Also, at the discretion of the new owner. With $100+ oil and given the history large wells on these leases combined with the documentation we have (attached), we believe individual drill sites could be sold for $8,000 to $10,000 each.”
- Category : Workover / Re-Entry / Shut-In