Posted by Alan D. Humphrey (66.38.29.23) on May 09, 2008 at 07:16:38:
FOR SALE: LATE 70'S EARLY 80'S PREVIOUSLY LARGE PRODUCING OIL FIELD
LOOKING FOR A PARTNER(S) To develop and re-work an old oil & gas field I own. It was previously known as the Richard Riddle Heirs lease containing 117 acres+-( SURVEYED). There are 4 completed oil wells, electrical, tanks, and numerous re-entries and new drilling potentials . Especially looking for persons interested in new innovative techniques, radial jet enhancement, etc.. This lease is located in Cumberland County, KY. It joins what was called "GOD'S LAND" OR "HIPPIE LEASE" and also joins the AKA Jerome Lyons lease or AKA South Ky Purchasing/Jarvis Drilling.
If you were ever an oil man who worked in Cumberland County, Ky you have heard of this area.
According to drillers log and other info sent to the Kentucky Division of Oil & Gas, some of the adj lease wells came in as large as 1,400 bbls. per day.( Note: Ky Division of Oil & Gas disclaimers and usage requirements). According to one of the main pumpers, this lease produced as much as 3000 bbls. per day and some news articles and oil companies say the Ashlock area produced as much as 1,000,000 bbls of oil. Since I don't have the actual data, I represent this as " HEARSAY". There has been no secondary recovery and as most oil professionals believe, only a small fraction of oil is ever recovered through initial production approx. 20%+-. ( Check with Ky oil & gas professionals for your own due diligence regarding this percent and other info herein. You are responsible for your own due-diligence and at your own expense.
I'm looking for very serious Partner(s) to develop and operate this lease to it's fullest possible potential.
According to driller logs, one of the wells has a 9 bbl. per day oil well behind the pipe in the Sunnybrook formation approx 700'+-. (This formation has good potential for acidizing and possible RJE and other enhancement) and a off-set well has 3 bbls. per day behind the pipe, ( according to the drillers log), in the Grandville formation. Grandville has very good longevity and acidizing potential) 500'+-, 5 1/2" casing was set through the pencil cave on a hook-wall packer isolating these shallow zones .(Not cemented). Note: I can e-mail explanations if you are not familiar with Ky geology or my terminology. Also this lease was drilled in the late 70's and very little has been done to this lease since then.
I'm willing to allow the right person(s) to operate and develop this lease with re-drilling, off-setting, re-entering plugged wells, re-working old existing wells, acidizing, etc.. ( All wells need re-working)
There are E-logs and drillers logs available on almost every well drilled on this lease and the surrounding areas.
I will sell the potential operator(s) 67.50% working interest . I will hold 20% royalty interest and the landowner holds a 12.50% over-ridding royalty interest.
The operator will own 100% of all equipment. They must re-bond wells in their company's name.
I reserve the right to withdraw from this deal at any time.
Please, only very serious persons only. I have over 25 years in the oil patch in just about all phases of its operation. From the ground to the tank . I'm just looking for the right person(s), someone to keep every thing as simple as possible and to exploit the oil & gas from this lease. LOOKING FOR A GOOD PARTNER(S) EASY GOING AND WITH LOTS OF GOOD OLD COMMON SENSE.
This lease has several wells that had problems with the Pencil & Mud cave ( a type of bentonite) heaving in. Instead of setting 7" casing through this thin but problematic zone (approx. 30' section). Operators at that time ran 5.5" pipe with hookwall packer after the well was drilled into oil . To avoid this problem and possibly jeopardizing the integrity of the well, I suggest setting 7" through this zone before drilling in. ( Too much explanation to get into here).
The approx equipment list is 4, 25,000 lb torque pumpjacks ( most Churchills)
3000'+ 5.5'' casing with hookwall packers, 6,800'+- of tubing, 6,800' +-rods, down hole pumps etc., 2-115 tanks, 1-210 tan (Needs some repair). All plumbing, and approx 5000' triplex electrical wire. ( too much to list) The approx new replacement value would be approx $250,000+-. Of course this equipment is not worth as much as new , most wells were completed in the late 70's and early 80's This lease has had lots of neglect but in my opinion very good potential for knowledgeable professionals. I'm especially looking for persons with new technology experience, enhance recovery, and especially knowledgeable in re working previously large producing old oil fields. Petroleum geologist, petroleum engineers, or knowledgeable oil persons . (Look at the news articles of the old Gradyville field in Adair county). I think this is it's 7+- oil boom). Looks like most of these old fields still have lots of life left in them. And I've heard people say many, many times. "There's no oil left there.''
For the price of $50,000