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Acid and water together are pumped out into the zone, then the acid/water mix is pushed further out by water alone. The acid/water mix is basically pushed further out into the zone, where it can do the most good, by backing it up with only water.
What we did on the Wanner 27-1 was an acid frac. We did not use any proppant. Proppant is not necessary, or advisable with an acid frac, which is primarily used in carbonates. In this case, the acid creates holes in the limestone rock, and the rock is strong enough to support itself, even with the new holes. Later. Tomorrow is another work day. Bedtime.
Sorry, but I have not cashed in any EDEX shares. The joke, and resultant laugh, is on you for too much nonsense. FYI I am in Montana doing geophysical work on a more than 100,000 acre lease play. As a result, I have not had much time to do any posting lately. I have chased the Lodgepole reef play into Montana and drilling will be initiated soon. The things that some of you people dream up are unbelievable. LOLOLOLOLOLLOL!!!!!!!!!!!
For you doubting Thomases, you can find me at the La Casa Motel in Glasgow, Montana. But don't call too late because I need my beauty sleep. LOLOLOLOLOLOLOL!!!!!!!!!!!!!!!
It is not that hard to understand, but to try and stop it is like trying to swim up stream against a strong current. It is easier to make money shorting pink sheet stocks, than it is to pick pink sheet winners. Most pink sheet companies will fail, something like nineteen out of twenty. It is easier to pick pink sheet losers than pink sheet winners, since most will be losers. Betting that all pink sheets will fail nets a probable winning percentage of ninety-five percent, with not that much risk. I have known MM's that shorted everything they had, while at the same time selling the same stocks to all of their clients, and they made a lot of money. Of course, it is not legal for MM's to trade stocks that they are market makers in, but that does not stop them from trading such stocks through proxies, or by naked shorting the stocks.
In our case, we are all mostly betting that HMGP will be a winner. I personally believe this is a good bet, all things considered. I give HMGP a better than ninety-five percent chance of success, which negates the MM's statistical advantage by naked shorting everything. GLTAL's.
It is difficult for me to comment on these wells, a result of the public companies that are involved. But you can expect a PR on the ND well fairly soon. Please be patient. The Mesa well is moving slower due to circumstances that are beyond my control. My health problems have also not helped us proceed faster than we have. I know that many posters here have poopooed my medical problems, but if they were in my shoes, they would be singing a different song. I can guarantee this. These uninformed posters just do not have a clue what they are talking about.
Please rest assured that you have not made a mistake. Patience is still the keyword here. The woman that you are referring to does not know anything, and if she knew the truth, or was willing to accept the truth, she would not be selling at these ridiculous share price levels. Why is she doing it? I don't have a clue. Cold feet? A nervousnellie? Someone who believes some of the cr*p on this board. Or maybe $60,000 is a lot of money to her. Whatever the reason(s), it is her right to play her hand as she wishes. I am playing my hand as I believe I should. I still have all of my shares, and I have no intention of selling at the current, very low share price. I envisage much higher prices, and will not sell until we reach our objectives.
No, I have not given up on this forum, but the problem is I am working more than full time and don't have much time to post. Everybody on our side of the table is working hard, and I do mean everyone. That does not leave much time for recreational activities, like reading and posting on this board. I enjoy the interaction with all board members, but I am sure all concerned here would prefer that we would all be out working toward accomplishing our goals. I had more time to post when my back was healing. It is now almost completely healed. No excuses. Back to work I go. GLTALs.
I have seen one wheel moved on a railroad car, but I don't know how they get the assembled trucks to the mine. I guess they are hauled in piece-meal and assembled on location. Amazing trucks. Unbelievable size. And, no doubt, they will be used for the shale operations. The oil sands also require them to be commercial.
In large scale mining operations, 350 ton dump trucks are common. These large trucks do not move up and down the highways, but are confined to the area being mined. I have seen such trucks with my own eyes. The operator uses a long ladder mounted to the side of the truck to crawl up into the cab. The wheels of such trucks are enormous, dwarfing a man standing beside them. Computers control everything. These trucks are used in mining operations where it is necessary to move large volumes of mined materials. I know that they are used in Canada to mine heavy oil sands as well as many other mining operations that involve moving large volumes of materials. These trucks were designed for all mines requiring an economy of large scale to make them work. No doubt oil shale mines will also be required to use them to make the economics work, or even bigger ones.
That clears it up. I have been selling oil to Plains, or companies bought out by Plains, since November, 1992. Plains pricing is generally competitive, depending on their trucking distance. If the trucking distance was a longer haul, Plains would not have been able to match Coffeyville's pricing. It's nice to hear that Hemi's crude pickups were not shuffled much by the flooding.
They are probably either storing it, or putting it in a crude pipeline, if they are out of storage capacity. I have also read that Plains was picking up Hemi's crude after the flood, but not enough was said about that for me to understand exactly what was really happening. And I also don't know if that affected the price Hemi was getting for their crude. Thanks for the information.
"Coffeyville Resources Refining & Marketing LLC said its 100,000 b/cd refinery is expected to resume operations by mid-September. Nearly 1,000 contract workers are helping repair and replace flood-damaged equipment." Oil and Gas Journal, Week of July 23, 2007.
This is good news for Hemi, who was selling oil to this refinery prior to the flood. There are other crude buyers in the area, but I am sure this refinery was probably the best price for Hemi's crude, no doubt the closest point of use.
After what happened to this refinery, it is hard to believe they can get it up and running so soon. It must be an unbelievable muddy mess.
Your question is a fair one, and I can make that post, but breaking all of that down will take some time. I will do it when I can find the time. I also need to add a discussion concerning all dry holes, what we found, what we learned, and what we plan to do in the future relative to each prospect. Some of these prospects are still active, and we do plan to do additional drilling on them because of what we learned from the initial well(s).
In all cases involving dry holes, my goal is to understand what caused the PIP anomaly, and to learn how to avoid the same problem in the future, or how to correct the problem, thereby ending up with a good result. This is the primary goal of all geophysicists worldwide no matter what method(s) they are using. Geophysicists are always trying to improve their methodology, even seismic.
Seismologist are presently doing extensive work with multi-variant seismic attribute analysis. This research involves approximately 50 different seismic attributes, and they are trying to find the combination of attributes, when analyzed together, that can provide solutions to seismic processing and interpretation difficulties.
My research with PIP is no different. I am constantly looking for ways to improve it. Every time I drill a new well, it is an opportunity to learn something new, and maybe something that can help me to improve my proprietary PIP geophysical method.
I have a meeting scheduled at 11:00 am and will be gone most of the rest of today. GLTALs.
Unusual circumstances can seriously disrupt anyones' plans. In this case, I consider what happened to have been very serious, and probably disrupted their entire office. Cutting HMGP a little slack is justified in this case. Nothing more and nothing less. FYI some excuses are valid. I have been in their shoes, and understand the problem a little better than you do. Trying to produce oil and gas wells with a flood raging around you is a real wreck, with potentially very serious economic ramifications!
Things could have happened that were above and beyond their control, thereby preventing HMGP from following through with an updated PR. Unfortunately it is not a perfect world. As an oil and gas operator, I can imagine that with the all of the flooding that occurred, HMGP has had their hands full, and many of their plans have been altered.
EDEX pays their own way.
No. But if you own a number of such wells (the White Trust No. 1 makes between 180 and 360 barrels of oil per month), you can make a living from them while the bigger problem of trying to find the mother lode continues. One step at a time. It has always been our intention to find the mother lode, and to use it to put EDEX into a higher financial orbit. Nothing has changed in those regards. The elephant hunt continues, and it will until we accomplish our goals. GLTALs.
I agree. What the hell are we doing up at this hour.
Thanks for your input and frankness. Nothings perfect. However, I want you to understand that even with the difficulties that you have truthfully noted, I still strongly believe that we can pull this off and have a winner. The magnitude of what we are dealing with can overcome lots of difficulties, and it only takes one winner to accomplish a lot. We have stood tall through many problems to this point, and EDEX is still swinging the bat. Thats what it takes to make a winner. You just keep swinging. Tom is not a quitter. That is probably more important than anything. GLTALs.
LOL!!!! Good to hear from you. I hope so also. Believe me, we are all ready for this to pop. What I have invested here is mind-boggling, and my investment is increasing exponentially almost every day.
Your statement is in error. EDEX does own production from the White Trust No. 1, which is a commercial well, a well which Geo drilled and operates in the Needle Creek area. This well paid out several months ago, and will continue to produce as long as we keep our Canyon waterflood going. We are many years away from reaching the economic limit of this waterflood.
You are welcome to your opinions which I believe have been freely and fairly stated. No lawyers necessary here. We welcome honest appraisals and criticisms, as long as they don't cross the line to malicious slander, which has happened in some previous post (not yours). Anyone can be sued for malicious slander if they are stupid enough to cross that line, and put it into print for the entire world to see. Even more stupid is when it is permanently recorded on IHUB for the plaintiffs attorneys.
Rank wildcat oil and gas exploration is not something that is easy to do. If you don't believe me, go give it a try. Pick your own spot out in the middle of nowhere and drill a well. This is not something that can be done on a rigorous, short schedule. Drill here. Drill there. Then maybe it is possible to finally find what we are all looking for. All of this takes time, and mistakes do happen to everyone willing to accept this risk, even Exxon. The measure of anyone is not whether they fail at any given task, but how they stand up after failures happen, and whether they keep trying. EDEX is still swinging the bat, and definitely has not given up. From this perspective of still swinging, you are going to be very surprised what crawls out of the hole EDEX has dug for itself.
FYI I am going to personally really enjoy making you eat your words. LOLOLOLOLOLOL!!!!!!!!!!!!!!!!!!!!!!!!!!
Mostly between Dougherty and Silverton located about 70 miles NE of Lubbock, TX and about 100 miles SSE of Amarillo, TX. The Pennsylvanian Bend shale covers all of the Palo Duro Basin, and was predicted to be the next Barnett shale. This prediction was a figment of the companies involved imagination. Geo's geologist told me prior to any wells being drilled that it would not work. We watched $100 million go up in smoke with no significant production, probably 15 wells. We believe a Canyon reef play exist in this area, but have not proven it yet. We are still working on it.
For this to happen, Victory has to raise real money to make it happen. Can they? That is the question. I personally don't believe Victory can raise the funds necessary to drill these wells. If Victory proves me wrong, I will gladly retract this statement. If this does happen, EDEX will be involved. If it does not happen, EDEX will still be involved in what we eventually do. Victory's success or failure here, will not determine the outcome of the Palo Duro play. This play has merit and will be pursued as time and funds become available to do so.
We also need the Bend shale play to cool off. It has been a bust so far, but the landowners still vividly remember the high lease bonus payments paid by these players. I believe this will all die out in time, but it is still fresh in their minds. All things in due time. GLTALs.
Granted, Hemi has a good, time-tested business model, that is being well executed when the weather permits; but adding good luck to the mix is even better. In some respects I would rather be lucky than good, and for Hemi's case, I believe being good and lucky will be the norm in the future. They have earned the good luck, and they have always had the good business plan.
Several years back I was sitting in a bar in Colorado Springs, Colorado with a man who owned 15,000 acres in the piney hills just west of town. The real estate market had been flat for years, and he had been holding on for a while. In discussing the situation, he looked at me, took a sip of his scotch, and with a twinkle in his eye, laughed, and said, "bad luck can't last forever". These were the truest words I have ever heard, and I have never forgotten them.
I have not heard about this discovery, but for Russia to nationalize a large oil and gas find is not surprising. This seems to be the norm rather than the exception. Greedy foreign governments are one of the biggest risk to international oil and gas exploration. I have no interest in it whatsoever. I have spent some time in Central America, South America, several Caribbean islands, the Canary Islands, and the North Sea, running offshore seismic surveys. That time I spent overseas was enough for me. I have no interest in leaving the good old USA. We also desperately need more domestic oil and gas production.
We all need a winner, and I am sure HMGP will provide it. HMGP's business model has succeeded many times in the past, and I am sure it will also succeed again, here. I feel the same way about EDEX, but patience is necessary for all concerned. GLTALs.
Our luck has changed. HEMI's luck has changed. IMVHO it will be easy to reach that $5.00 share price that has been mentioned. Patience is all that is required at this point. It will happen, if we wait and let it happen. GLTALs.
They are included as dry holes. The only one that is not included in our success ratio is the Fowler Unit No. 1, which was technically a mechanical failure. This hole was junked with over 600' of collars. These collars are still in the hole, and we own them. Basic Energy Services put them in our invoice, which was paid a long time ago.
From my standpoint, this well is not a PIP failure, since we never reached our deepest objective. There is also and outside chance that the pay in this well is Mississippian, but we don't really know. Time will tell. We plan to re-enter this well and steer around the junk. This will not be easy to do, but we do plan to do this in the near future. We can reach the Canyon formation easily, but it will be impossible to reach the Mississippian formation due to depth and hole size that is too small.
I would actually call that situation stranded gas, stranded by poor economics. I know exactly what you are talking about. Some discoveries are difficult to make money with, until economics improve. I think all operators have to cross that bridge at times. GLTALs.
OT: I lived in the last house going up Gold Camp Road looking down on the Broadmoor Hotel from 7,500'. I had an unbelievable view from my bedroom window as well as the rest of the house. At times the clouds were even with the deck, and it looked as if I was flying on an airplane with none of the city visible below the cloud deck. The fireworks on July 4th were also beautiful. I hated to leave in 1990, but the only way to sell an oil deal was to move to Texas and find a prospect. That is what I ended up doing. I found Needle Creek in 1991 and finally got it drilled in 1992.
Sounds great. I lived in Colorado Springs for eight years, and I am very familiar with the area you are in. Should be some great hiking and fishing nearby. Thanks for your input.
I definitely agree. He is the most complete oil man I have ever known. He can take a prospect from inception to production without any help from anyone. This includes all technical aspects as well as all legal ones. If I lost him to our competition, it would take five technical and legal people to replace him. He has received numerous job offers, but he is very happy where he is at, and believes in PIP.
We rarely cap any wells with our drilling efforts. Almost all of the wells we have drilled are either producing or plugged. The wells I have referred to as potential re-entries, are all plugged, except one, the Fowler Unit No. 1. This well has a closed valve on it, is located behind a closed, locked gate, and the wellhead itself is locked by a chain and massive round key lock. For almost all cases, the Texas RRC will not let the operator move a rig off of a well without either plugging it or running production casing in it. The Fowler Unit No. 1 has intermediate casing in it which completely isolates all zones, thereby allowing us to put a valve in it for easy future re-entry. The RRC is also comfortable with this because we are a bonded operator. But it is rare that the RRC will let an operator do this. The Fowler Unit No. 1 was one of the cases where this was possible because of the existing circumstances. If I am not understanding your question or your point, please let me know, and I will try to answer it.
Needle Creek (Strawn) Oil and Gas Field
Needle Creek (Canyon) Oil and Gas Field
William Patrick (King) Gas Field (We filed this as a discovery, but never developed the field due to being unable to establish a market for the dry (low BTU) gas. We also looked into using this gas resource for generating electricity, but that option was also limited by only a single phase electric line nearby, rather than the required three phase line. This field is located approximately 5 miles WNW from Needle Creek (Strawn) Oil and Gas Field. We plugged and abandoned this well after running out of options to produce it.)
Duffer "C" No. 1 (This well extended the Duffer lease production northward as well as found a shallow Pennsylvanian reef that will require a second well for production. We are holding this lease with minor Duffer production, and do have other zones behind pipe including the Barnett shale. The Duffer zone has excellent waterflood potential, but it will be an operator's nightmare trying to get all other Duffer operators on board to do it. The second reef well is planned as soon as time permits. This was the first shallow Pennsylvanian reef found anywhere in the wide-spread surrounding area. This was one of the questions I asked Calvin to investigate prior to drilling this well, but Calvin found no shallow reefs anywhere in the area. We found one with the Duffer "C" No. 1. I had hoped to find a much deeper Mississippian reef, but if shallow petroleum zones exist, PIP will preferentially find them. This is one of our exploration weaknesses.)
Poverty Point (Ellenberger) Field (We are currently producing this well, the Underwood No. 1, from the Ellenberger and do have other zones behind pipe which appear to be productive. This was initially a 3-D seismic prospect that was later confirmed with PIP. This well would not have been drilled without the PIP confirmation. We initially thought this might be a Goen reef based on the seismic, but it ended up being a radical horst block with multiple overlying, stacked pay zones.)
We are also working on the Mesa 26 State No. 1 which has Permian gas sand potential, and the Wanner 27-1 which has Mississippian Lodgepole potential. Both of these wells are in various stages of completion or testing, and we believe both will yield discoveries.
Additional plans that we have include a re-entry into the Fowler Unit No. 1 for deepening to the Pennsylvanian Canyon formation, one of the original potential pay zones that was never reached due to the hole being junked. We have negotiated a contract and expect this to happen in the near future.
We have other projects planned in areas where we have drilled dry holes, but learned enough information from the initial drilling efforts, to believe we are on the right track, just in the wrong spot, or we narrowly missed the right spot. Drilling for one well reefs is not easy to do. It has actually ended up being much harder to do than I originally thought it would be. Missing a reef target by 100 feet can make the difference from a barn burner well to a stinker. Precise 3D locational drilling using horizontal steering tools is required to make sure the correct targets are drilled through.
The last figures that Calvin gave me for production totals was total production at Needle Creek, barrels of oil equivalent (BOE), all leases and all operators, since our initial discovery well in August, 1992. This figure is getting very close to 2,000,000 BOE, and GeoSurveys, Inc. operated leases produced approximately 70% of this total figure. We also participated in some fashion with most of the other operators in the Needle Creek area, usually sharing in their production on some basis for a variety of reasons.
Two main oil and gas fields were found in this area including Needle Creek (Strawn) and Needle Creek (Canyon). We drilled the discovery wells for both of these fields, the Speck No. 1 (August, 1992) and the Hargroves No. 2 (August, 2004) respectively. These fields were separated by a distance of 1.5 miles, and were not connected. Lesser other zones have also been listed as discoveries in this immediate vicinity, some by GeoSurveys, Inc., and some by other operators, some of which we were partners with.
We then spent the next ten years slowly developing these finds, and we still have proven undeveloped acreage to drill. The Canyon field has been waterflooded successfully (we own 100% of this field) and the Strawn field is being pressure maintained by a limited wide-spaced saltwater injection program. We still have not made up our mind what kind of secondary recovery program will be best for the Strawn field. CO2 would work great here, but we don't have a viable source of CO2. A steamflood may also work great, but that process is technically challenging as well as expensive. We have decided to collect data with our limited injection program in order to ascertain whether a comprehensive waterflood will work. So far, the results suggest a waterflood will work, if we really crowd our producers.
The total production numbers from GeoSurveys, Inc. operated oil and gas leases in the Needle Creek area are 1,235,027 BO and 920,524 MCF, or 1,388,448 BOE. The total production numbers from other operators in the Needle Creek area are 516,183 BO and 289,126 MCF, or 564,371 BOE. The total production numbers from all sources in the Needle Creek area are 1,751,210 BO and 1,209,650 MCF, or 1,952,819 BOE. This is the figure that was in the back of my mind for Needle Creek production, approximately 2,000,000 BOE. By now, which includes May, June and July production, we have gotten closer to the 2,000,000 BOE figure, and will no doubt exceed it sometime later this year.
I had previously told you that I thought GeoSurveys, Inc. had produced 2,000,000 BOE by itself, but Calvin informed me that I was wrong about that. Please forgive my mistake. That 2,000,000 BOE figure is the total cumulative production for the Needle Creek Oil and Gas Fields. And GeoSurveys, Inc.'s produced share of that total is 71.1%. We also participated in most of the rest of the Needle Creek production, but not as the operator.
No capped wells have been included in these statistics, only producers. I don't know of any capped wells drilled by Geo. If they don't produce or have no hope of producing, we plug them, and they are listed as dry holes.
There are other things that you need to know as far as our drilling statistics are concerned.
During the mid-1980's, I hit 13 out of 14 wells in Kansas using radiometrics, microradiometrics, micromagnetics, magnetics, and soil-air helium analysis. All of these wells paid out, some rapidly, but the party ended in early 1986 with the collapse of oil prices. Oil prices dropped from $25 to $7 almost overnight. At $7, payout was too long to work for most wells. As a result, the industry collapsed. Most onshore wells drilled in the continental United States were not commercial at these prices. During this time, I moved out of Kansas to look for greener pastures. I eventually moved to Texas and after two years found Needle Creek Oil and Gas Fields, McCulloch County, Texas.
Also, during the mid-1980's Calvin, Geo's geologist, drilled 43 out of 46 wells correctly on the Chadbourne Ranch. Calvin managed to extend the Chadbourne Ranch Oil Field into areas to the west that Exxon believed would be non-productive. This area ended up yielding massive oil and gas production that Exxon completely missed for more than thirty years. The oil operator that Calvin was working for at this time eventually sold out and retired. Calvin never was paid the override he was promised by the operator for this work. They remain at odds to the present day. It is a very sore spot for Calvin. This is why he is working for Geo today. Our gain, their loss. Calvin is one of the best geologist I have ever known.
None of the above statistics have been included in the often quoted 70% success ratio. The 70% ratio only includes the wells that have been drilled in the last 15 years, since the discovery of Needle Creek.
I can answer your questions tomorrow when I am at my office. I don't have any of the data with me at home. Calvin can also provide you with our production totals. Our numbers are right, not the RRC. If what you have provided is complete for the RRC, there is a mistake somewhere. I am sure that Geo's production totals at Needle Creek are very close to 2,000,000 barrels of oil. We have all of the records at our office, so it can easily be proven for anyone who wants to look through them. We can also get our crude buyer to confirm this.
All of the wells that we considered successful produced oil and gas, or could have produced oil and gas, if the wells had not been used for a different purpose. Some wells were used for saltwater injection for pressure maintenance purposes. In order to use any well for pressure maintenance in any given reservoir, it is necessary to hit the reservoir, and therefore it is a successful hit.
The company that we deal with is Brinkerhoff Exploration, Inc., which I did not find on your list.
Thanks for the information.