Business For Sale Listing 146760
Existing Oil Wells for Re-Completion
Status as of Oct-10-2008 at 06:00 PM: Off The Market
Business Summary
This project entails identifiying existing, but capped, oil wells that have available well logs etc. showing well tests with significant production capability. The wells were plugged for various reasons at time of drilling none of which had to do with the viability of the well itself. Reasons were such as too close to buildings or fencelines, etc. The passing of time has resolved all these issues and thus creates this excellent opportunity where it has become legal to produce these wells.
Once indentified, the leases will be acquired and the wells will be re-entered for completion and production start-up. There are seven wells/leases identified so far for the program. The data on them shows that the combined production rate during initial flow-testing was 2,500 BOPD for the 7 existing wells.
The principal/operator has 30 yrs experience and a team assembled. He is offering a 50% share of the working interest in these 7 leases for the sum of $4.1 million. This means that any additional wells drilled on these 7 leases would be included in the investors 50% WI without any more investment. All leases/wells are 80/20 or 80% NRI,
(net revenue interest)
Or, it could be done as $2.1 investment for a 50% working interest in the 7 wells. Future wells drilled would be upon right-of-first-refusal for the investor to participate or not at his choosing.
This program has the advantage of having existing wells with proven oil in them. This is not wildcat drilling.
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Industry
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Financials
| Sales: |
Not Disclosed |
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Not Disclosed |
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Not Disclosed |
| Asking Price: |
Between $2.5 Million and $5 Million |
