If you read the updated TNOG financials, you'll find that they may be redrilling the K1 well with a JV parter. So it may not turn out to be a 'dry hole' after all!
NOTE 6 – CURRENT OPERATIONS AND FUTURE PROJECTS
CURRENT OPERATIONS
Work is underway to commence high-volume pumping on the Stanley # 1
Well in Wilson County, in conjunction with a water disposal system to
allow the well to be produced at a high volume. The Stanley # 1 Well
produced in excess of 1,000 barrels of oil in one month earlier this year,
and has a past production history of approx. 28,000 barrels of oil, along
with substantial amounts of gas.
A high-volume turbine submersible pump has been ordered, and the
permit process is underway to commence work on the target water
injection well.
FUTURE PROJECTS
Bastrop County – Central Texas Project
Titan currently has over 250 acres under lease in Bastrop County, with an
additional 350 acres that are also available in order to initiate new drilling
operations. We are arranging the transportation of tanks from the
Kosciusko location to be used in developing our first target well on the
Bastrop County lease.
Titan's initial drilling target in Bastrop County is a re-completion of a well
with an initial production history of approx. 170 barrels of oil and 178 mcf
of gas per day. Titan’s Petroleum Engineer, Pete Maupin, wants to utilize
a process to renew production that has been successfully used in the area
many times in the past, but that was not applied to this well.
If test results are as expected, with the current 250 acres under lease there
are a further 5 opportunities for wells to be drilled in this field - 1 re-
completion of an existing well bore, and 4 opportunities for new wells to
be drilled from the surface. If we proceed to lease the remaining 350 acres,
we will have 6 further opportunities for new wells to be drilled from the
surface. We will be issuing a Bastrop County Report to shareholders
similar to the report that was prepared for Wilson County.
Stanley #1 B Well
In addition to the foregoing, we plan to undertake horizontal drilling on
the Stanley #1 B Well in Wilson County as quickly as possible. The
original vertical well originally produced over 30,000 barrels of oil and a
substantial quantity of gas as a vertical well. The Stanley # 1 B Well has a
large, 5 1?2” diameter casing to more easily facilitate re-completion by
horizontal drilling than smaller well bores generally found in the area.
Kosciusko #1 Well
Although results were not as expected in a recent vertical recompletion of
an existing well bore, an opportunity exists to undertake an additional
horizontal recompletion to exploit several fractured areas immediately
adjoining the existing well bore. We are actively discussing this with
potential joint venture partners.
Our management team has decided to fully exploit the value of our oil and
gas properties at a more rapid pace by means of joint ventures. We have
had good progress thus far in discussions with interested parties and will
update our shareholders on developments as they occur.
AI
