EnDevCo Acquires 100% Stake in Short Junction Field
EnDevCo, Inc., the Energy Development Company, has signed an agreement to purchase 100% of all rights in the West and Central Units of Short Junction Field located in Oklahoma City, Oklahoma. The 12,000 acre leasehold is fully unitized and is comprised of 19 active wells that are currently producing 121 barrels of oil per day from the Hunton limestone reservoir and 400 mcf of gas per day from the Red Fork sand reservoir. The purchase includes a total of 270 well bores of which approximately 40 will ultimately be reactivated and includes full ownership rights to a field wide gas pipeline and gathering system that offers two independent taps to the interstate gas transmission system.
At current prices, the Company projects its cash flow from the project to be $7,500 per day or approximately $225,000 per month from the 19 active wells.
The Company recently advanced a $500,000 non-refundable deposit and will select debt financing being offered from several financial institutions to complete the purchase prior to December 01, 2005. Immediately thereafter, an aggressive well recompletion program that is designed to increase daily oil production to over 240 barrels/day and 2,250 mcf of gas/day over the next 12 months will begin. Concurrent with the well recompletion program, 3D
seismic will be acquired over the field which will be integrated into a full engineering simulation of the Hunton reservoir dynamics. Based on these advanced technical studies, the Company plans to drill horizontal wells for both oil and gas production to fully realize a possible upside potential of an
additional 10 million barrels of oil and 10 BCF of gas reserves.
- EnDevCo Completes Second Horizontal Well at Short Junction (Aug 18)
- EnDevCo Partners in Peru Exploration (Mar 06)
- EnDevCo Appoints New Chief Financial Officer (Feb 25)