This news is great, and the shorts will definately start coveing once there is news of a spud-in. 700 foot oil is very shallow; too shallow for conventional fracking. (The injection of water under high pressure in typically deep production zones with low permeability or pressure or production, where operators have drilled new long horizontal wells in well established lihologic zones of production; turning a 75 foot vertical zone of production into a one mile long well of fracked production.... The Bakken in No. Dakota).
The water table is the issue, fracking can cause injury to the local water table and no governmental authority will permit any operation which could even possibly allow invasion of hydrocarbon products into the local water supply. Oiljob
I wonder who our neighbors are and if we can negotiate production sharing agreements permitting horizontal drilling 360 degrees from any leasehold drill site. Is the formaiton silicate or limestone based? It could somewhat depend upon the age and maintenance of the surrounding leasehold property. Local history would be nice to know with such shallow acreage. How thick is the production zone producing oil?
Property like this made Getty a billionaire in East Bakersfield when he introduced steam injection to facilitate the recovery of thick viscous oil from shallow local wells in that vicinity. As long as you have good permeability there are various methods to induce secondary recovery of oil. The good news is we have our own rigs and personnel in Texas and we can experiment with all the possibilities quickly with such shallow oil. Finally do we just own the shallow oil or do we own the entire production profile, i.e. can we drill deeper? If so there could more oil at 1500 or 2500 feet too, untapped undiscovered oil would give the fields true new life.
AI
