TBX Completes First Well on Vici Project
TBX Resources Inc. announced that the first well in the Vici Project has been drilled to a total depth of 11,200 feet and is now going into the testing and completion phase.
Halliburton has been contracted and will be performing the testing and completion services. According to the log, the Red Fork and the Marrow formations were present with substantial gas shows. Initial Production (IP) tests should be available in a few days. TBX Resources continues to execute the business plan in the Anadarko Basin as this well, when completed, represents the sixth commercially productive well drilled to date.
This lease, located just west of Vici, Oklahoma, is geologically located in the center of the Anadarko Basin. The prospect could result in 10 additional wells to be drilled with the primary objective of the Vici Prospect being the Red Fork formation. Secondary objectives in the prospect area are the Bartlesville and Morrow formations. According to the geologist, the prospect is a low risk development prospect with gas reserves expected to be in the 1 BCFG to 4 BCFG (billion cubic feet of natural gas) range and between 30,000 and 80,000 BO (barrels of oil) per well. If some of the Secondary Objectives are realized, ultimate reserves could be as high as 5 BCFG per well. With today's current pricing of $2.80 (per thousand cubic feet of gas) and $22.00 (per barrel of oil), each well could equate to a projected value of $20 million gross dollars for the gas and a projected value of $2 million gross dollars for the oil per well, although no assurances can be made that this project will live up to TBX's expectations. TBX Resources Inc. participated with a 20% Working Interest in this drilling venture along with several other industry partners.