The Company's investment was based on geologic assessment and feasibility studies completed by Craig Bourgeois, the Technical Advisor to the Company's Board of Directors.
Each of the wells known as the "Weil" is located within the Saxet Deep Field of Nueces County, Texas. On 320-acre spacing the "Weil" 8-C, 3-C and 7-C produce both oil & gas from this historically known area. This field within miles of the city, Corpus Christi, has produced primarily oil and has production dating as far back as the 1940s.
Cumulatively, these 3 wells have average production of approximately 1 MCFD (Million Cubic Feet Gas Per Day) and 13 BOD (Barrels Oil Per Day) from depths of approximately 7,000 feet. These well bores exhibit behind pipe, up-hole potential of 10 - 12 additional zones of hydrocarbon pay from log analysis and calculation similar to that of the currently producing. "This phenomenon, not uncommon in the area, should result in extending well bore life significantly," reports Mr. Bourgeois. Negotiations are currently taking place to drill/re-enter two additional wells offsetting this production.
Given the saltwater produced in connection with the oil and natural gas the Company and its partners converted the "Weil 2-C" and "Weil 6-C" wells into saltwater disposal wells as there was no production to be gained from them. This conversion has significantly increased positive cash flow, saving the cost of a third-party removal service. Due diligence is currently being conducted to assess the option of converting the 2-C well into a commercially viable disposal well. This allows other producers in the area the benefit of reduced cost of disposal while earning the Company additional revenue.
"This has been an exciting project for Gulf Coast," said President and CEO, Rahim Rayani. "The success of this project allows the Company to more comfortably meet its day to day obligations and allow us to focus on our Saratoga property and others that we believe will continue to lead the Company to future success."
Gulf Coast Oil and Gas, Inc. is a Houston, TX based Oil and Gas Exploration and Development Company with assets in both Texas and Louisiana. The Company's goal is to acquire low risk Oil and Gas properties onshore and in the USA with a focus on developing and producing from proven, developed and undeveloped reserves. Gulf Coast has focused its efforts on shallow well drilling in order to maximize shareholder returns without the high risk and expenditures associated with larger and more expensive wells. Gulf Coast Oil & Gas, Inc. has currently three wells producing both Oil & Natural Gas.
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