The Emley and Rihn Project has been delayed due first to the deluge experienced in south Texas and also from unexpected mechanical issues. Glenn Texas Oil (GTO) is a self-contained, debt free company. We own our own equipment and utilize in-house crews to perform almost all the work. There are significant advantages to investing directly with the operator. Since we share expenses, GTO has a built in motivation to keep costs low. More important, because we own the equipment and directly employ the crews, we are in a unique position to control costs in all areas. This has proven to be a valuable protection for ourselves and our partners. This has been especially important as prices have turned downward. One of the few disadvantages is that, in order to save money, repairs and mechnical issues that inevitably arise take a little more time to resolve. While delays are always unwelcome, our approach keeps dollars on the bottom line rather than in the coffers of subcontractors.
Our current plan is to go to total depth and then frack the zone as soon as it can be arranged. We are also, concurrently, working on the last of the re-works. GTO has already successfully re-worked 7 of the 9 pre-existing wells. We are currently waiting for pump jacks to arrive and subsequently installed on the final two re-works. The results were as expected. We are generating minimal amounts of oil. We fully expect that, after fracking, these wells should produce significantly more oil. Still, even at these preliminary levels of production, we are still generating some revenues for our partners even with low prices. This demonstrates, to our minds at least, that the Plan of Operation for the Emley & Rihn Project is not only sound, but proving to be effective at generating cash flow.
GTO continues to apply our capital along with our partners to generate profit and energy for American needs in shallow, cost-effective areas. We are committed to a low-cost approach that will protect our dollars in times of falling prices and will add more dollars to the bottom line when they finally go back up. For information on this or other projects, please feel free to call us at 210-460-6630 or submit a request through our contact form.
If you have any questions about oil investing please feel free to call Glenn Texas Oil anytime at: 1 (888) 406-1734.