BOSTON, MA -- (MARKET WIRE) -- 09/06/07 -- Scott Masse, CEO of Dynamic Natural Resources, Inc. (OTCBB: DYNI), has recently completed an interview with MN1.com. The interview has been archived and is available for anyone to listen to at the following link http://feeds.mn1.com/dynamic_natural_resources_inc_dyni.htm
Dynamic Natural Resources would also like to announce the acquisition of the 140 acre, 29 well, Oather-Strader Lease located in Greensburg, Kentucky. The Company owns a 78 1/8% Working Interest in this lease. These 29 wells are completed in the coniferous limestone formation at an approximate depth of 500 feet. The field rework has been started and a new injection well will undergo a Mechanical Integrity Test soon. The oil has been lab tested for Microbial Enhanced Recovery and the results came back very favorable. Dynamic is considering a Microbial Enhanced Water Flood in the future, as well as other secondary recovery methods.
Dynamic has hired Mammoth Geo-Physical to perform Hyper-Spectral Imaging and Natural Fracture Mapping of the Strader Lease. Dynamic expects to drill and core two new wells in the upcoming quarters. Hyper-Spectral Imaging is explained on our website at www.dynamicnaturalresources.com under the EOR tab, go to Geo-Physics.
Scott Masse, CEO, commented, "The Oather-Strader lease is a great opportunity to exhibit the potential of secondary recovery. We have been in discussions with an Enhanced Oil Recovery company to consider this lease as a pilot for their proprietary new EOR technology that has exhibited tremendous results in China."
Friday, September 07, 2007
Dynamic Natural Resources, Inc. Acquires Three New Leases and Announces Interviews With MN1.com and Wall Street Reporter
BOSTON, MA -- (MARKET WIRE) -- 08/30/07 -- Dynamic Natural Resources, Inc. (OTCBB: DYNI) has acquired a total of 4 new wells located on three separate leases. Scott Masse, CEO, will be interviewed by MN1.com on Thursday, at 12:30 pm and the Wall Street Reporter on Friday, at 1:30 pm to discuss these acquisitions and the future direction of Dynamic Natural Resources.
The Earhart lease consists of 80 acres and has multiple off-set drilling locations. Dynamic owns 94% of the working interest in this lease. The Earhart lease has 2 wells that were drilled in the early eighties to approximately 3200 feet. Dynamic is excited to be the first in the Il Basin to employ a unique surfactant called SWR on the Earhart lease. SWR is a surfactant system which exhibits a combination of characteristics that are not found in any comparable commercially available system. More information about SWR can be found at http://www.oilremoval.com/index.htm or in the near future at our website www.dynamicnaturalresources.com.
The Webber Lease has one well on it that is located in a limestone formation and was drilled in the eighties to approximately 3200 feet. Dynamic owns approximately 57% of the working interest in this well. The Company recently cleaned the well with 15% HCL acid and the well is currently producing about 1 1/2 Barrels of Oil per day. We expect after complete de-watering of the Webber that the well should go back to producing 3-5 BOPD.
The School well is adjacent to the Webber well and has also been shut in for a few years. The well was drilled to 3200 feet and produces from a limestone formation. The well is fully equipped and needs to be cleaned out before restarting production. Dynamic owns approximately 35% of the working interest in this well.
Scott Masse, CEO, states, "The Company is doing an excellent job of executing its game plan. We have excellent partners in the field who have helped us turn our idle wells back into consistent producers. We have already announced the purchase of 10 wells and look forward to announcing the acquisition of more leases in the near future."
The Earhart lease consists of 80 acres and has multiple off-set drilling locations. Dynamic owns 94% of the working interest in this lease. The Earhart lease has 2 wells that were drilled in the early eighties to approximately 3200 feet. Dynamic is excited to be the first in the Il Basin to employ a unique surfactant called SWR on the Earhart lease. SWR is a surfactant system which exhibits a combination of characteristics that are not found in any comparable commercially available system. More information about SWR can be found at http://www.oilremoval.com/index.htm or in the near future at our website www.dynamicnaturalresources.com.
The Webber Lease has one well on it that is located in a limestone formation and was drilled in the eighties to approximately 3200 feet. Dynamic owns approximately 57% of the working interest in this well. The Company recently cleaned the well with 15% HCL acid and the well is currently producing about 1 1/2 Barrels of Oil per day. We expect after complete de-watering of the Webber that the well should go back to producing 3-5 BOPD.
The School well is adjacent to the Webber well and has also been shut in for a few years. The well was drilled to 3200 feet and produces from a limestone formation. The well is fully equipped and needs to be cleaned out before restarting production. Dynamic owns approximately 35% of the working interest in this well.
Scott Masse, CEO, states, "The Company is doing an excellent job of executing its game plan. We have excellent partners in the field who have helped us turn our idle wells back into consistent producers. We have already announced the purchase of 10 wells and look forward to announcing the acquisition of more leases in the near future."
Smarts Oil and Gas, Inc. Announces Acquisition of White Lease and Appointment of Gerald L. Schiano as Chief Operating Officer
Dynamic Natural Resources Inc. (OTCBB:DYNI) is pleased to announce its recent acquisition of a 33% working interest in a 5,000 foot Devonian well located in Wayne County, IL. This well, which was drilled in the early 1990's, has had a history of paraffin encroachment that inhibited production. After further studying the oil, it was determined that MEOR (Microbial Enhanced Oil Recovery) could potentially mitigate the paraffin issues. The well was treated using MEOR technology approximately 5 weeks ago. It was then shut-in for approximately 30 days in order to allow the microbes to colonize the well bore region. Smarts reopened the well 6 days ago and in that time this well has produced 104 barrels of oil. The company acknowledges that this is flush production and that these rates will drop off, however the results have still far surpassed management's expectations.
Scott Masse, President states, "The microbes worked nicely and have had success throughout the country in addressing paraffin issues. We will look to utilize this method of oil recovery in other wells similar to the White Lease that can be stimulated using this excellent biological resource. We are currently looking to acquire numerous other leases in the same geographic location that will add assets and cash flow to Smarts, along with value to our shareholders."
The well flowed enough oil in 13 hours to pay for the microbe treatment. Monthly injections of the "bugs" will keep the colony fresh and mitigate further paraffin accumulation. Smarts eliminated exploration risk by acquiring an interest in a well that was producing at the time of purchase, but needed the expertise of our crews to drastically increase production levels. This will be the model for future acquisitions and the appropriate enhanced oil technique will be used to revitalize the wells.
Smarts would also like to announce that Gerald L. Schiano has been appointed Chief Operating Officer of Smarts. Gerald began his career as an accountant for Gilbane Building Company. Later he was hired as Chief Financial Officer of a construction company involved in large public construction projects. Gerald then moved on to run his own construction company servicing large public construction projects.
Scott Masse, President states, "We are very excited to have Gerry on our team. His managerial talents in the field will help our company run smoothly and his financial experience will also go a long way to make sure that Smarts obtains the success that we are all going to demand."
Scott Masse, President states, "The microbes worked nicely and have had success throughout the country in addressing paraffin issues. We will look to utilize this method of oil recovery in other wells similar to the White Lease that can be stimulated using this excellent biological resource. We are currently looking to acquire numerous other leases in the same geographic location that will add assets and cash flow to Smarts, along with value to our shareholders."
The well flowed enough oil in 13 hours to pay for the microbe treatment. Monthly injections of the "bugs" will keep the colony fresh and mitigate further paraffin accumulation. Smarts eliminated exploration risk by acquiring an interest in a well that was producing at the time of purchase, but needed the expertise of our crews to drastically increase production levels. This will be the model for future acquisitions and the appropriate enhanced oil technique will be used to revitalize the wells.
Smarts would also like to announce that Gerald L. Schiano has been appointed Chief Operating Officer of Smarts. Gerald began his career as an accountant for Gilbane Building Company. Later he was hired as Chief Financial Officer of a construction company involved in large public construction projects. Gerald then moved on to run his own construction company servicing large public construction projects.
Scott Masse, President states, "We are very excited to have Gerry on our team. His managerial talents in the field will help our company run smoothly and his financial experience will also go a long way to make sure that Smarts obtains the success that we are all going to demand."
Tuesday, May 08, 2007
Interview With Steve Bowen, Well Enhancement Services Part II
1- Hi Steve, we have heard that you can now acidize while pulling the coiled tubing from the horizontal laterals. What is the effect and have you had documented increases in production?
Yes, we are now injecting acid directly into the laterals during the jetting process. We started implementing this procedure in our operations in Kansas several months ago. In order to effectively jet with acid, we had to upgrade our pumps to stainless steel. Alternatively, we can load the acid into our tubing after the main high pressure pump using a secondary acid pump mounted on a trailer. The results from jetting with acid have been impressive. We are generally seeing increases in production in the range of 2 to 4-fold, but like any bell curve, there will be some underperformers below a 2-fold increase and some overachievers beyond a 4-fold increase. We have seen some increases of up to 10-fold. Jetting with acid increases the probability of economic success over jetting without acid by about 50%.
2-Is the process more costly than traditional acid jobs?
Jetting with acid takes more time and also takes a bit of a toll on our equipment. Our coil tubing doesn’t last as long, and we hope that upgrading our pumps to stainless steel will eliminate the impact on that equipment. In general, we charge a modest premium per lateral for injecting acid directly into the lateral. I know of no other procedure where you can be assured that acid will be placed in formation 300 ft from the well bore.
3-What type of acid do you use?
We typically use hydrochloric acid (HCL) as the acid of choice. However, we recently completed a 4-well program where we jet all the laterals using sulfemic acid, which is basically simple pickle juice. Sulfemic acid is benign at normal ambient temperatures and can be safely handled without protective gear and can also be run through equipment without fear of damage to the equipment. However, when heated above 150 degrees, it aggressively dissolves limestone. In fact, sulfemic was a common stimulation acid in the oil field before the advent of HCL.
4-Have you considered using retarded acid systems?
When you place the acid directly into the lateral, there is no need for a retarded system.
5-Can you shoot laterals in formations with paraffin issues?
When jetting laterals in wells with paraffin problems, we typically recommend using diesel fuel as the jetting fluid. Diesel fuel is an excellent solvent while working in paraffin and avoids any emulsion issues that one might encounter in jetting with water.
6-It seems since we last spoke more companies are using the technology. Any areas where it is really taking off?
The business is steadily growing. Since starting in Texas in 2005, we have expanded our field offices to Kansas , Oklahoma , and Kentucky . Someday jetting laterals will be as common and considered standard practice in wells as perforating the casing.
7-If you use a wireline can you go deeper than 6000 feet?
To operate deeper than 6,000 ft, you really need to use an injector head in order to support the weight of the tubing. The technology is effective independent of depth; however, the equipment has to be sized accordingly to handle the weight of the coil tubing in the hole.
8-What type of production increases are you seeing with laterals plus acid vs just latetrals?
This is addressed in question #1 above.
9-Any new technology initiatives you would like to comment on?
Not at this time.
Thanks for your time!
Yes, we are now injecting acid directly into the laterals during the jetting process. We started implementing this procedure in our operations in Kansas several months ago. In order to effectively jet with acid, we had to upgrade our pumps to stainless steel. Alternatively, we can load the acid into our tubing after the main high pressure pump using a secondary acid pump mounted on a trailer. The results from jetting with acid have been impressive. We are generally seeing increases in production in the range of 2 to 4-fold, but like any bell curve, there will be some underperformers below a 2-fold increase and some overachievers beyond a 4-fold increase. We have seen some increases of up to 10-fold. Jetting with acid increases the probability of economic success over jetting without acid by about 50%.
2-Is the process more costly than traditional acid jobs?
Jetting with acid takes more time and also takes a bit of a toll on our equipment. Our coil tubing doesn’t last as long, and we hope that upgrading our pumps to stainless steel will eliminate the impact on that equipment. In general, we charge a modest premium per lateral for injecting acid directly into the lateral. I know of no other procedure where you can be assured that acid will be placed in formation 300 ft from the well bore.
3-What type of acid do you use?
We typically use hydrochloric acid (HCL) as the acid of choice. However, we recently completed a 4-well program where we jet all the laterals using sulfemic acid, which is basically simple pickle juice. Sulfemic acid is benign at normal ambient temperatures and can be safely handled without protective gear and can also be run through equipment without fear of damage to the equipment. However, when heated above 150 degrees, it aggressively dissolves limestone. In fact, sulfemic was a common stimulation acid in the oil field before the advent of HCL.
4-Have you considered using retarded acid systems?
When you place the acid directly into the lateral, there is no need for a retarded system.
5-Can you shoot laterals in formations with paraffin issues?
When jetting laterals in wells with paraffin problems, we typically recommend using diesel fuel as the jetting fluid. Diesel fuel is an excellent solvent while working in paraffin and avoids any emulsion issues that one might encounter in jetting with water.
6-It seems since we last spoke more companies are using the technology. Any areas where it is really taking off?
The business is steadily growing. Since starting in Texas in 2005, we have expanded our field offices to Kansas , Oklahoma , and Kentucky . Someday jetting laterals will be as common and considered standard practice in wells as perforating the casing.
7-If you use a wireline can you go deeper than 6000 feet?
To operate deeper than 6,000 ft, you really need to use an injector head in order to support the weight of the tubing. The technology is effective independent of depth; however, the equipment has to be sized accordingly to handle the weight of the coil tubing in the hole.
8-What type of production increases are you seeing with laterals plus acid vs just latetrals?
This is addressed in question #1 above.
9-Any new technology initiatives you would like to comment on?
Not at this time.
Thanks for your time!
Monday, April 02, 2007
Buying and Selling Producing Oil Fields
1-Hi Sonny, thanks for your time today! Could you tell our readers what your company does?
Pumpjac properties list oil and gas leases for sale and finds buyers for these properties. We are the exclusive sales agent for Majestic Management Corporation in Glasgow Kentucky.
2-How did you get into the business?
I am the owner of Entrivac Corp in Louisville Kentucky. We rebuild industrial vacuum pumps for refineries and gasoline terminals nationwide. A group of oil men in Texas, which I have known for years, ask me to perform due diligence for a oil property in Kentucky. I visited the oil field, made my report, and a few weeks later, they told me they were not interested, however; I was contacted by the selling agents of the Kentucky property. They liked my style and background and wanted me to consider selling oil and gas properties for them. That was one property and a year ago, and now we have listed nine properties nation wide totaling well over $1,000,000,000.
3-Are there any trends you are seeing that might not be apparent to our readers?
Well, producing properties with large reserves with good documentation are the best sellers now, however the best deals for the money are often the non-producing properties.
4-Where are the hottest markets for new oil and gas leases or production?
Actually everywhere. But of course the oil boom areas such west Kansas are especially so.
5-What are the valuation metrics to consider when evaluating an oil and gas lease?
Production, reserves, good documentation by the owner, and a clean operation with no open wells, spills, etc.
6-For level production, what are you seeing sellers get per barrel? $20K? $30K or more?
I do not get involved with that end of a sellers business. What they get for their oil does not interest me as far as selling the oil field.
7-Is this recent oil boom here to stay or just a speculative bubble?
Because the demand is here to stay and getting larger , because the world oil reserves are on a downward trend, (by most counts) the crude oil prices will be affected likewise.
8-How is your company different from others in the market?
We do not auction oil and gas properties, we do not operate regionally, and we do not specialize in any oil and gas field size ranges
9-Where are there still values in terms of buying production or leases? KY, IL etc?
I think everywhere when there is a good return on the buyers investment, say 2-3-4 years.
10-Is the market fairly efficient and liquid?
I think because of new technology in this industry, the market is more efficient than if ever has been
Sonny can be reached: sentrican@aol.com or click the link on my blogroll!
Pumpjac properties list oil and gas leases for sale and finds buyers for these properties. We are the exclusive sales agent for Majestic Management Corporation in Glasgow Kentucky.
2-How did you get into the business?
I am the owner of Entrivac Corp in Louisville Kentucky. We rebuild industrial vacuum pumps for refineries and gasoline terminals nationwide. A group of oil men in Texas, which I have known for years, ask me to perform due diligence for a oil property in Kentucky. I visited the oil field, made my report, and a few weeks later, they told me they were not interested, however; I was contacted by the selling agents of the Kentucky property. They liked my style and background and wanted me to consider selling oil and gas properties for them. That was one property and a year ago, and now we have listed nine properties nation wide totaling well over $1,000,000,000.
3-Are there any trends you are seeing that might not be apparent to our readers?
Well, producing properties with large reserves with good documentation are the best sellers now, however the best deals for the money are often the non-producing properties.
4-Where are the hottest markets for new oil and gas leases or production?
Actually everywhere. But of course the oil boom areas such west Kansas are especially so.
5-What are the valuation metrics to consider when evaluating an oil and gas lease?
Production, reserves, good documentation by the owner, and a clean operation with no open wells, spills, etc.
6-For level production, what are you seeing sellers get per barrel? $20K? $30K or more?
I do not get involved with that end of a sellers business. What they get for their oil does not interest me as far as selling the oil field.
7-Is this recent oil boom here to stay or just a speculative bubble?
Because the demand is here to stay and getting larger , because the world oil reserves are on a downward trend, (by most counts) the crude oil prices will be affected likewise.
8-How is your company different from others in the market?
We do not auction oil and gas properties, we do not operate regionally, and we do not specialize in any oil and gas field size ranges
9-Where are there still values in terms of buying production or leases? KY, IL etc?
I think everywhere when there is a good return on the buyers investment, say 2-3-4 years.
10-Is the market fairly efficient and liquid?
I think because of new technology in this industry, the market is more efficient than if ever has been
Sonny can be reached: sentrican@aol.com or click the link on my blogroll!
Tuesday, February 13, 2007
Liberals Not Ready To Fight, Oil Moves Higher
A few weeks ago, I wrote that it was only a matter of time on Iran.
Oil has since rallied $8 and the US government has said Iran is directly responsible for the deaths and maiming of hundreds of our brave troops.
Meanwhile, back home, the weak Democrats are once again flip flopping on the use of force. The Congress is trying to pass a nonbinding resolution condemning the use of more troops.
Iran and Al Qaeda are sitting back waiting for us to leave. The consequences of which will be a nuclear armed Iran and an all out civil war that will have consequences throughout the Middle East.
Fundamentally, I think the liberals just do not get it.
We are at war with fanatical Islam and will be for a long time.
I know our troops get it and are willing to put their lives on the line for it. Unfortunately, the liberal media and Democratic party does not understand how to deal with bullies.
So while the world community "talks", terrorists and rogue nations continue to ACT!
What would Ronald Reagan do? How much time would he give Iran?
He would whack the bullies straight between the eyes and go looking for others with the same intentions.
The equation is easy, folks.........Liberal Pansies=Oil Moves Higher!
Bottom line!!!!
Oil has since rallied $8 and the US government has said Iran is directly responsible for the deaths and maiming of hundreds of our brave troops.
Meanwhile, back home, the weak Democrats are once again flip flopping on the use of force. The Congress is trying to pass a nonbinding resolution condemning the use of more troops.
Iran and Al Qaeda are sitting back waiting for us to leave. The consequences of which will be a nuclear armed Iran and an all out civil war that will have consequences throughout the Middle East.
Fundamentally, I think the liberals just do not get it.
We are at war with fanatical Islam and will be for a long time.
I know our troops get it and are willing to put their lives on the line for it. Unfortunately, the liberal media and Democratic party does not understand how to deal with bullies.
So while the world community "talks", terrorists and rogue nations continue to ACT!
What would Ronald Reagan do? How much time would he give Iran?
He would whack the bullies straight between the eyes and go looking for others with the same intentions.
The equation is easy, folks.........Liberal Pansies=Oil Moves Higher!
Bottom line!!!!
Friday, January 05, 2007
Liberal Ideology of Engagement Means Oil Moves Higher Long Term
If I hear one more time that we must "Engage" Syria, North Korea, or Iran I am going to puke!
Bullys need to be hit between the eyes not negociated with. Anyone that has dealt with bullys in life knows that a sure way to be bullied more is to make concessions.
Appeasement is the cause of more harm in this world than aggressive stances.
Oil is at an 18 month low currently, but long term the trend is higher. Forget about the fundamentals for higher oil prices such as the growth of India and Asia, etc.
Geopolitical risks such as the domination of the gulf by Iran is a far greater threat to oil prices.
How many more GI's need to be killed by Iranian made IED's before we take action?
Bullys need to be hit between the eyes not negociated with. Anyone that has dealt with bullys in life knows that a sure way to be bullied more is to make concessions.
Appeasement is the cause of more harm in this world than aggressive stances.
Oil is at an 18 month low currently, but long term the trend is higher. Forget about the fundamentals for higher oil prices such as the growth of India and Asia, etc.
Geopolitical risks such as the domination of the gulf by Iran is a far greater threat to oil prices.
How many more GI's need to be killed by Iranian made IED's before we take action?
Wednesday, December 20, 2006
It's Only a Matter of Time on Iran
It was nice to see Tony Blair step up yesterday and condemn the actions of Iran in the Middle East. A few weeks ago, I spoke of the tensions in the region leading to higher oil prices. I am afraid that after what has happened in Iraq, the political will needed to deal with Iran will not be present.
Either way, in my humble opinion, oil moves higher longer term. Since I spoke of the Democrats and oil prices a few weeks back, not only has Iraq been on the cusp of full civil war, but the Palestinians now appear to be going at it. Hamas and Fatah can only agree that they hate Jews. Al Qaeda's second in command wants armed struggle with Israel and the west. They also want Hamas to be in accord with that goal.
Oh and I forgot, Lebanon is still in flux. Political assasination seems to be the norm these days.
How long will we allow Iran to supply the bombs and training to kill American Gi's? Where is the mainstream media, so far I've only seen Fox News take an aggressive stance on the matter. Unfortunately for America, this nation is divided & with the Whitehouse up for grabs, I doubt we'll have much bipartisan support on further action in the Middle East.
Bottomline, Oil Goes Higher!
Either way, in my humble opinion, oil moves higher longer term. Since I spoke of the Democrats and oil prices a few weeks back, not only has Iraq been on the cusp of full civil war, but the Palestinians now appear to be going at it. Hamas and Fatah can only agree that they hate Jews. Al Qaeda's second in command wants armed struggle with Israel and the west. They also want Hamas to be in accord with that goal.
Oh and I forgot, Lebanon is still in flux. Political assasination seems to be the norm these days.
How long will we allow Iran to supply the bombs and training to kill American Gi's? Where is the mainstream media, so far I've only seen Fox News take an aggressive stance on the matter. Unfortunately for America, this nation is divided & with the Whitehouse up for grabs, I doubt we'll have much bipartisan support on further action in the Middle East.
Bottomline, Oil Goes Higher!
Monday, December 18, 2006
Why Rework Oil Deals Make Sense Now
Re-completing an older oil well can make great economic sense with oil prices above $50 per barrel. As an investor, two important factors that can not be avoided are cost and risk. Re-entry or reworks, as they are called, when examined on a cost and risk basis can be attractive candidates for further research.
As we all know too well, even with the greatest technology, dry holes do happen when you drill for oil. As an accredited investor, if you can not bear the risk of a dry hole, you should not be in the oil game to begin with. If you are an accredited investor, but would like to enter the oil markets slowly, consider looking at a reentry or rework deal.
The advantage to these type of deals is that you know ahead of time what the original owner found downhole. Careful analysis of logs can yield potential zones that were never exploited. Also, since many older wells were drilled, new technologies such as the GasGun and Radial Jet Enhancement have evolved and can boost production significantly. Petroleum engineers can even make calculations as to the amount of oil potentially recoverable based on log analysis.
Drilling a new well is not a cheap proposition. I recently was sent a quote from one of the largest contract drillers in the midwest for a 4000 foot well. Assuming no problems, it would cost over $240,000 to drill and complete a well. Also, site prep fees can be reduced because the location is already accessible which is important in hard to get to locations and the survey/plat simply needs to be updated. If costs are lower, risks can be considered lower because investors get a faster return of investment dollars.
One final advantage is time! There is a huge waiting list for rigs to drill new wells. In the meantime, there are thousands of wells that could be re-entered or reworked. As in any oil deal, make sure you do your homework. Re-works do involve risk and success is not a sure thing. Before I commit to a new re-work project, I try to remember what my old high school track coach always told me.......the 6 P's, PRIOR PLANNING PREVENTS PISS POOR PERFORMANCE!
As we all know too well, even with the greatest technology, dry holes do happen when you drill for oil. As an accredited investor, if you can not bear the risk of a dry hole, you should not be in the oil game to begin with. If you are an accredited investor, but would like to enter the oil markets slowly, consider looking at a reentry or rework deal.
The advantage to these type of deals is that you know ahead of time what the original owner found downhole. Careful analysis of logs can yield potential zones that were never exploited. Also, since many older wells were drilled, new technologies such as the GasGun and Radial Jet Enhancement have evolved and can boost production significantly. Petroleum engineers can even make calculations as to the amount of oil potentially recoverable based on log analysis.
Drilling a new well is not a cheap proposition. I recently was sent a quote from one of the largest contract drillers in the midwest for a 4000 foot well. Assuming no problems, it would cost over $240,000 to drill and complete a well. Also, site prep fees can be reduced because the location is already accessible which is important in hard to get to locations and the survey/plat simply needs to be updated. If costs are lower, risks can be considered lower because investors get a faster return of investment dollars.
One final advantage is time! There is a huge waiting list for rigs to drill new wells. In the meantime, there are thousands of wells that could be re-entered or reworked. As in any oil deal, make sure you do your homework. Re-works do involve risk and success is not a sure thing. Before I commit to a new re-work project, I try to remember what my old high school track coach always told me.......the 6 P's, PRIOR PLANNING PREVENTS PISS POOR PERFORMANCE!
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