FEGR's Oil and Gas Properties..
All this for a current $32,000 market cap? Somone is going to buy these up...
Our four oil and gas leases in Texas consist of the following:
Byler Lease: The Byler lease totals 372 acres of which approximately 57% is in a defined Fry Sand oil field. The Fry sand is at a depth of 1,300 feet and is part of the Strawn Series which is a prolific oil producer in the region. The Byler lease also contains the Marble Falls Limestone which is part of the lower Pennsylvanian System at approximately 2,300 feet. Of the 17 existing wells on the lease, two are water injection wells, eleven are Fry wells and four are Marble Falls wells. The Company has installed a new tank farm and three new pump jacks. As at December 31, 2012, there was no production on the property.
Hutchins Lease: The Hutchins lease totals 194 acres of which approximately 30% is in defined oil fields. The Company’s lease is for the upper production zones included the Fry Sands. There were four Fry Sand wells which were plugged in 2001 when the operator had financial problems and oil and gas prices were very low. We expect to reenter the one of the Fry Sand wells. There is good potential for in-field drilling. A new tank farm and other infrastructure are needed on the Hutchins lease. As at December 31, 2012, there was no production on the property.
South Thrifty Lease: The South Thrifty lease totals 1,000 acres of which approximately 54% is in defined oil fields. There are five Chappel Reef and Ellenberger oil wells and eighteen Chappel Reef gas wells. There is also a water injection well. One of the wells had an initial potential of 792 barrels per day. Cheap and used casing was installed, which created a hole after only a short time and reduced production to 50 barrels per day and eventually zero. There is good potential for in-field drilling. The South Thrifty lease has five tank farms. As at December 31, 2012, there was production on the property from several gas wells. The other wells need some work.
Tyra Lease: The Tyra lease was acquired in the fourth quarter of 2012. It totals 20 acres and has one well. There is potential for a second in-fill well.
