Shareholder letter 3 weeks ago
Since then there has been a required road upgrade and completion of the previously fracked horizontal is scheduled for Oct 8
Dear SHAREHOLDER,
LEAMAN #1
We had the pre-spud meeting YESTERDAY
The service rig arrives in less than 1 week ( September 12) to set the plug ; drill through the casing ; ream the hole larger( longer ) and smoother and then set the whip-stock
Mobilization of the Larger Schramm 200,000 Pull Back 30.000 # Pull Down Top Drive drill rig will start September 18-19
The drill rig is finishing another well and will be delivered as soon as it hits TD
Doug Kitchen, our Operator, advises that pressure at our well head "continues to increase" - saying " it really should not take much for this well to kick-off" ( as is).
MARKSMEN certainly has a committed team of engineers and geologists ( we believe the best in OHIO) working for and with us on , and directing , this remedial program .
MARKSMEN is a cash flow positive junior oil company listed in the USA , and Canada, with 5 oil wells in Pickaway Ct. OHIO. ERGON pays us WTI prices at our tanks.
We are in a high risk and very high reward resource program .
EVERYONE IS WAITING !!!!!!
I can't tell how many calls and emails I have had from investors. brokers and financial people - many weekly; many every couple of days
Obviously everyone expected the well to be in production a month(ss) ago
Some investors are tired of waiting and we see that in the share price.
Remember that the MARKSMEN management and Board have an enormous amount of money ( skin in the game) and even more in time invested in this corporation.
I decided to send this update to you so you are informed. These are facts and for what it is worth my opinion.
I do expect renewed interest as soon as the whip-stock is set and then again the day that the big drill starts drilling ahead on the second horizontal leg.
If we get the drill footage rates we expect we should be in the fracked oil and gas rich ( saturated) zone on day 2 and we can expect pressures to build
MARKSMEN is in this play because of its enormous potential. Our pioneer horizontal well has had numerous technical problems but it is a new experience for our Operator, and for us,--------- and for OHIO !
We are in this play because 50,000-75,000 old vertical wildcat wells produced huge amounts of oil from the CLINTON SANDSTONE
We believe ONE (1) horizontal well will produce as much oil as 10-15 vertical wells. Around our Leaman # 1 lease there are wells that had initial production rates of +100 BOD. We have a new lease where old vertical wells had IP's of up to 200 BOD. We have access to a very larger land position, have no funded or public companies ( no competition) in this 50 x 100 mile play and we expect to be the leader . Our partner is privately held ERGON the refinery that needs this 42 API "PENNSYLVANIA CRUDE". They have no other drilling operations in OHIO .
During our drilling of the Leaman # 1 well we had oil to surface several times and many strong gas kicks during the drilling of the horizontal leg.
This is not a "dry hole" which our share price suggests ! FURTHER, we then created a very high pressure multi stage hydraulic frac of the entire horizontal leg which was very successful .
The oil and gas reserves are there! Our studies estimated $23,000,000 per type horizontal well.
We have access to that reserve but are about to create a second, and better, access and then produce this well ! Tanks, and production equipment including well pumps,are on location.
The great well, that we expect, will, we expect, make the share price gap upward - so I am telling investors they will probably not have any time to accumulate at low share prices when we start drilling ,as we have no choice but to halt the trading in the stock with any positive news. Also there are local OHIO shareholders and share buys at the well site all the time ! We are the only game in town- the only public company in this well, IN THIS ENTIRE PLAY !
Thank you for your support
?
Archie
