Madison County, Texas
Madison County, Texas
We are conducting a 54 well field development in Madison County, Texas. To facilitate investment participation and reduce risk, the project has been structured in two well increments which are financially independent. Each two well package contains one production well and one injection well. Each two well package will have a synergistic effect on all other wells in the field due to the re-pressurization of the entire oil formation, yet each is a financially independent operation.
An investor has the option of participating in as many, or as few, of the two well projects as he chooses. Returns from any two well project will likely determine the exercise of the option to participate in subsequent packages.
This current field development project will ultimately drill 27 production wells and 27 injection wells, (54 total) to fully exploit the oil recovery from this field. Cumulative costs for drilling all wells and operations will be in the one hundred million dollars ($100,000,000) range. The majority of the operational costs will be paid out of oil production.
We are targeting a recovery extraction in excess of 17.5 million (17,500,000) barrels of cumulative oil with this secondary recovery. Even at a low market spot price of $35.00 a barrel, the oil sales will be in the $610,000,000.00 range, based on the reservoir analysis recoverable estimates.
The Lewisville section of the Woodbine, which is the target for the water flood, is approximately three hundred (300′) feet thick from the base of the Eagle Ford Shale to the top of the Dexter. There are four (4) sands that vary in thickness from twelve (12′) to ninety (90′) feet with a net thickness of ninety (90′) to one hundred thirty (130′) feet over the project area. This part of the Woodbine formation is a depletion drive reservoir and appears to be a partially depleted or highly saturated reservoir and therefore should not require an extensive re-pressurization period.
The Dexter section of the Woodbine, which is the water source for this project, is a gross interval of three hundred (300′) feet from the base of the Lewisville D Sand and is a strong water drive when porosity is encountered. These sands have been partially depleted in past years and were never produced with high water cuts. This water source formation has an oil cut which will be separated and sold when water is extracted to re-pressure the upper Lewisville target zone.
There appears to be an attractive opportunity to develop the attic oil that is trapped around the edges of the reservoir and to produce the reservoir at high volumes. The water that is produced in the Dexter can be used extensively to pressure and water flood the Lewisville Sands. This dramatically reduces the cost, transport and disposal of water during field production. This project has been designed around proven geology for superior results. George Jackson, President of Wheeler Operating, has decades of experience in conducting successful water flood recovery operations.
The current project has had 3D Seismic that shows the formations to be contiguous and non-fault blocked. This is exactly the type of field that responds well to water flooding and Mr. Jackson has had remarkable success with, in the past. We are pleased to welcome you as a partner on this development opportunity.
Current Status of Project
As of March, 2021, twenty wells have been drilled, completed, and put into production. All production wells are still in operation since their completion date. As of the above date, the operations costs have been paid without any additional contributions from investors
We are on track to drill the next two wells during the first quarter of 2018. We expect to have the total development completed sometime in 2021 with 54 wells drilled. Production from previous Wheeler conducted water flood fields has lasted in excess of three decades.
Additional acreage acquisition will also come into play as this development unfolds. For detailed information, contact us today.