Kentucky Oil Wells and Recoverable Gas Reserves
Western Kentucky - We have two active leases where we own 100% of the working interest as follows:
Muhlenburg County - Greenville Unit and Simpson Lease
These leases are located within the Hardeson Consolidated Field just north of the Pond River in Southern Muhlenburg County. The Greenville Lease has approximately 1,200 acres and the Simpson Lease has 250 acres for a total of 1450 contiguous acres. These leases had been developed in the Jackson Sandstone prior to our obtaining them in 2005. We drilled 7 wells beginning in 2006 and are currently producing 20 barrels per day from 5 of the wells in the McClosky and O'Hara Limestone. We have 1 injection well permitted that will be on line by February 1, 2010. There are also 2 old Jackson wells producing about 1 barrel per day.
Substantial engineering and mapping has been completed on these leases primarily on the WT Lile tract within the Greenville Unit and on the Simpson Lease. Our engineering was completed from two independent engineering sources. The drilling program has covered about 90 acres of the total 1450 acres available. According to the engineer's estimates, the recoverable oil from the McClosky and O'Hara Limestone is 219,361 barrels on the currently drilled wells and the 3 wells proposed by the engineer. We have produced 19,840 barrels from these zones. No testing of these zones has been done on the remaining acreage within the Greenville Unit and on the northwestern portion of the Simpson Lease.
There should be significant oil remaining in the
Hardingsburg and Jackson sands on these leases.
Gas flows were reported in several zones during drilling of these wells; however, none of the shows were tested. Logs are available for all wells drilled. The engineers estimate shows an estimated total recoverable gas of 12,340,839 mcf on these 2 leases.
Christian County - Pritchard Lease
This lease is located south of the Pond River just down stream from the leases described above. This lease consists of approximately 466 acres. We own 100% of the working interest on this lease. We drilled 5 wells in the fall of 2008 below the Jackson that all had great shows of oil and gas. The porosity on these wells was low and only three of the wells are pumping, producing about 3 barrels per day. Two wells were drilled and cased to the New Albany Shale. The potential for gas production appears to be good on this lease as the engineer estimates 5,018,112 MCF of recoverable gas reserves.