- Oil and Gas Focused
- Wolfberry Trend - Well life extends past 25 years
- Drilling Began in June 2011
- VYEY entered the play in December 2011
- Mississippian, Wofcamp, Canyon and Strawn formations
- Wells are drilled and undergo a multi-stage frac
- 10 well drilling program underway
- Two wells currently completed and on production
- A third well has been drilled, fraced and is awaiting pumping frac fluid
- Average daily flows of 75 BO and 200 mcf
- Located in Howard County, Texas
On December 12, 2011 the Company announced its first investment in a “resource” play. The Company acquired an interest in the ClearWater project, which is an established multi-well oil and gas focused project.
Drilling on the 3,186 held acres has been underway since May of 2011. The project is located in the heart of the Wolfberry and Wolfcamp resource trend (Howard County). Three wells have been drilled and fracture completed and an additional seven are planned for this acreage. These 10,000 to 11,000 foot wells are renowned for their consistent oil and gas production and their more than twenty-five year life spans. Each well completed in this trend will average between 30-100 BOPD and 150-300 mcf per day.
When the project was announced three wells were drilled to date, the Sage No. 1, the Hamlin 26 No. 1 and the Hamlin 26 No. 2. The Sage No. 1 and The Hamlin 26 No. 2 have been completed and are producing approximately 150 BO and 800 MCF per day combined (gross). The Hamlin 26 No. 1 has been drilled, fracture stimulated and is in final completion stages. A salt water disposal well has also been drilled on the acreage.
The operator, Clear Water, Inc., expects to drill seven additional wells and anticipates approximately one completion per quarter, depending on frac crew availability. Drilling and completion costs to the Company’s 1.5% WI were between $23,000 and $28,000 for the first three wells, which management believes is a good estimate for the cost of future wells. Total estimated reserves per well (gross) are approximately 150,000 BO and 0.5 BCF of natural gas.
The company, through its partnership with Aurora Energy Partners, holds a 1.5% percent working interest and a 1.125 percent net revenue interest.
Wolfberry Trend Resource News
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