Mitchell Energy Inc. originally drilled this gas well in the early 1980's and decided not to complete the well in the deeper formation. This well currently produces from a Strawn formation about 2600 feet deep. AMEP's petroleum engineer believes this well can produce natural gas from a Bend Conglomerate formation about 4100 feet deep. With new fracture stimulation's not available in the early 1980's and natural gas prices over $5.00/MCF this is a perfect candidate to increase the income and gas reserves of Bend Arch Petroleum Inc. Other conglomerate wells in the area had initial production rates of over 1,000,000 MCF per day and our petroleum engineers believe this well has that same potential. If a successful completion is realized this well could have possible income of $5,000 per day or $1,500,000 annually.
Charles Bitters, President of American Energy Production Inc. stated "The purchase of this well is a continuation of the aggressive acquisition campaign to acquire oil and gas properties that can be re-worked and re-stimulated into income producing properties."
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