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.
All of the opinions expressed here, inclusive of all my past, present or future post, are mine, and mine alone; and in absolutely no way should anyone construe that the opinions, I have expressed here, have been endorsed by anyone, especially EDEX.
