We struck oil! Glenn Texas Oil Co. is proud and excited to announce the success of our first new drill on the Emley & Rihn Lease Development Project.
The Emley 1-C was drilled to a total depth just under 1400’. We circulated oil in all three targeted zones. Seeing is believing. The well was designed to target the Olmos, Escondido and, of course, the Anacacho Zone. The Anacacho is a highly prolific Late Cretaceous Zone that was first discovered in 1915. The Taylor-Ina Field has already produced some 47 million barrels of oil.
The Emley 1-C is the first of 4 wells that will be drilled as part of the project. We expect to get minimal production at first. However, once fracked we conservatively expect the wells to average around 5 BOPD each. However, we have information on wells drilled on nearby and adjacent leases that came in doing over 20 BOPD.
These types of wells are very low-cost to drill and operate. Additionally, we are further able to control costs because we own the equipment and do the work with our own crews. The low cost structure has allowed us to generate cash flow to the investors even with prices as low as $45/bbl. So, we are very optimistic that the project will generate even bigger profits as we drill the additional wells and perform fracks where suitable.
We believe that our low-cost approach and focus on these shallow wells offers smart investors three unique advantages especially in this current price environment. First, while we expect prices to rise, the low-cost approach will allow us to keep generating cash flow to investors even if prices fall further or stay persistently low. The approach protects investors from the gyrations in markets that are not always directly tied to supply and demand.
Second, by targeting these shallow zones in well-defined fields, we are able to offer units at a far lower cost than might be possible in newer and more technically challenging fields. These shallow zones will produce without a frack, but small, inexpensive, and easy to implement fracks produce big results. So, we are able to avoid costs normally associated with projects in more challenging fields. Most important, our expertise and depth of knowledge of these fields is a key reason we have had nothing but success in this project.
Finally, the low-cost approach and shallow well approach allows us to offer a unique combination of a low-risk profile and the kind of upside generally associated with bigger, riskier projects. The Emley & Rihn Project was low-risk to begin with. We have further reduced the risk profile by re-working all 9 wells. These re-works were very successful and have already generated cash flow. Actual oil and actual cash flowing is a pretty good sign this is going to work. The low-cost approach means that we could generate returns well above 100% annually once we get to full production and if prices rise only modestly. If the post-frack results are closer to nearby wells rather than our very conservative estimate, we’ll be looking for the hats and hooters.
We know that the gloom and doom that pervades the oil markets is giving savvy investors reason to pause. In this challenging price environment, smart investors will look for high value opportunities. We believe that we offer tremendous value for a very low entry point. If you’re looking for that value and are willing to take the risk, give us a call.
The Emley 1-C was drilled to a total depth just under 1400’. We circulated oil in all three targeted zones. Seeing is believing. The well was designed to target the Olmos, Escondido and, of course, the Anacacho Zone. The Anacacho is a highly prolific Late Cretaceous Zone that was first discovered in 1915. The Taylor-Ina Field has already produced some 47 million barrels of oil.
The Emley 1-C is the first of 4 wells that will be drilled as part of the project. We expect to get minimal production at first. However, once fracked we conservatively expect the wells to average around 5 BOPD each. However, we have information on wells drilled on nearby and adjacent leases that came in doing over 20 BOPD.
These types of wells are very low-cost to drill and operate. Additionally, we are further able to control costs because we own the equipment and do the work with our own crews. The low cost structure has allowed us to generate cash flow to the investors even with prices as low as $45/bbl. So, we are very optimistic that the project will generate even bigger profits as we drill the additional wells and perform fracks where suitable.
We believe that our low-cost approach and focus on these shallow wells offers smart investors three unique advantages especially in this current price environment. First, while we expect prices to rise, the low-cost approach will allow us to keep generating cash flow to investors even if prices fall further or stay persistently low. The approach protects investors from the gyrations in markets that are not always directly tied to supply and demand.
Second, by targeting these shallow zones in well-defined fields, we are able to offer units at a far lower cost than might be possible in newer and more technically challenging fields. These shallow zones will produce without a frack, but small, inexpensive, and easy to implement fracks produce big results. So, we are able to avoid costs normally associated with projects in more challenging fields. Most important, our expertise and depth of knowledge of these fields is a key reason we have had nothing but success in this project.
Finally, the low-cost approach and shallow well approach allows us to offer a unique combination of a low-risk profile and the kind of upside generally associated with bigger, riskier projects. The Emley & Rihn Project was low-risk to begin with. We have further reduced the risk profile by re-working all 9 wells. These re-works were very successful and have already generated cash flow. Actual oil and actual cash flowing is a pretty good sign this is going to work. The low-cost approach means that we could generate returns well above 100% annually once we get to full production and if prices rise only modestly. If the post-frack results are closer to nearby wells rather than our very conservative estimate, we’ll be looking for the hats and hooters.
We know that the gloom and doom that pervades the oil markets is giving savvy investors reason to pause. In this challenging price environment, smart investors will look for high value opportunities. We believe that we offer tremendous value for a very low entry point. If you’re looking for that value and are willing to take the risk, give us a call.
If you have any questions about oil investing please feel free to call Glenn Texas Oil anytime at: 1 (888) 406-1734.
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