AllEnergy Corporation closed the purchase of the Bell Lease located near Abilene, Taylor County, Texas.
The purchased lease contains 40 acres with producing oil Well #1, rework Well #2, and an additional drill site for Well #3. The acquisition also includes the lease on the salt water disposal well that is key to enhanced production in the field. The company's Bell Lease is located adjacent to the Reddin unit. The Reddin has been in production for 70 years and has produced over 6 million barrels of oil. From the Bell Lease, AllEnergy has current annualized production of approximately 3,600 barrels on Well #1, before planned improvements. In addition, rework on Well #2 has commenced with a completion target of 4th quarter, 2012.
Dean Sukowatey, President and CEO of AllEnergy Corporation, stated, "Our business model is to expand oil production through wells that can be easily and economically reworked into additional production very quickly, and the Bell Lease certainly fits that description. Well #1 now produces annualized revenue of approximately $300,000. With completed rework on Well #2 and drilling Well #3, we estimate revenues from the Bell Lease will exceed $5,000,000. Mr. Sukowatey also stated that the company continues to evaluate additional lease acquisition opportunities in Texas, as well as oil production acquisition opportunities in other states. Our Bell Lease capital partners continue to fund us on additional acquisitions."
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