Imperial has conducted an evaluation and has obtained an independent reserve report on its Nunnelly #1 re-entry and wellbore deepening prospect located on a 35 acre mineral lease in Montague County, Texas.
The Company believes recoverable reserves are approximately 32,455 Gross Barrels of Oil (22,231 net BO). The project is rated as a P50 or 2P classification (at least a 50% probability that the estimated reserves will be recovered). Capital expense is expected to be less than $300,000 if the re-entry of the existing wellbore goes to plan.
The Company intends to obtain additional third party reservoir analysis from an independent registered petroleum engineer.
The Company expects preparation operations on the wellbore to commence this week. Imperial believes that the potential cashflow from Nunnelly #1, if successfully completed and put on production, will provide useful revenues as the Company progresses, in concert, its planned transformational Oklahoma Resource Play.
Robert Durbin, CEO, commented, "Nunnelly #1 is a nice opportunistic play for us - the low entry cost makes it a very economically viable project even at oil prices much lower than those prevailing today."
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