I have been in contact with Glen Kennedy.
I emailed a few questions seeking clarification on a couple of points concerning research on the wells here in Brownwood. I honestly was surprised that he responded promptly, and fully answered my questions. Not only that, he gave me additional unsolicited information, and to top it off, attached the exhibit A of the purchase agreement, fully identifying the wells involved. I have done my homework on the wells, and will expound on this later.
Today I had another question, and I called. Got a recording. I'll be da*%ed if within 30 minutes I was talking with him, and we talked for an additional 30 minutes! This guy is for real. His words were "I'm not a stock jock, I'm an oil man". We ended our conversation by exchanging cell phone numbers and he agreed to give me an opportunity to visit the individual well sites with him when he comes to Brownwood next week.
Now, on to the wells.
All three wells are currently open, meaning they can produce. I have researched the Texas RRC records, and have looked at the past production numbers. In the late 1990's they were each producing 180+ barrels on demand. Within the next couple of weeks the well casings will be inspected, and if repairs are required, the current owner will have to accomplish prior to closing, which, by the way, is set for late May. Ron Dority, the current owner was delivered the complete package for signature today.
The attorney handling the transaction is in Coleman, TX, about 28 miles from here, and has the escrow when the deal is executed.
Electricity is available at 2 of the wells, and Coleman County Electric Coop has agreed to set the necessary poles for the 3rd well. One of the wells will be set up as an injection waste site, which we already have the injector pump being refurbished in Abilene.
One well has the production facility and the second will be piped to this well. LHPT will or is in the process of registering as a transporter, so we can gather and transport our own product rather than paying someone else to do so.
Glen Kennedy was very involved in the West Thrifty project which is located on adjacent property, and was very very successful. He is known in the area, and seems to have a good reputation for getting things done. He was recruited by LHPT for his knowledge and background in oil field work, not as he says for "bean counting or M&A activity". He has tanks, piping, control panels, transformers, etc. lined up, and was very up front and candid in our conversation concerning what he would like to see the wells do, performance wise. I wont speculate here, but rather wait for some testing that will be done within 30 days, but suffice to say if they check out like Mr. Kennedy suspects, we are looking at a healthy output.
I am looking forward to meeting him in person, and visiting the site. Ill keep everyone posted.
And I guess I should say IMO.
BTW, my research was delayed due to my wife being in a horrible auto accident Monday. She is home now, and will be fine, but sure played havoc with my little project here!
AI
