TULSA, Okla., Aug. 2, 2012 /PRNewswire/ -- New Gulf Resources, LLC ("NGR") announced today the recent well results from its Horizontal Mississippian Oil project located in Pawnee and Osage Counties, Oklahoma.
Eufaula LLC, an affiliate vehicle of NGR, is currently completing its second well. NGR controls more than 200 additional long-lateral horizontal locations in the play. The Company is using the latest in horizontal drilling and multi-stage fracture completion technology. The Company's last well, the Robinson #1-H resulted in initial production in excess of 400 barrels of oil equivalent per day (BOEPD). The group continues to tweak its completion methods, lateral lengths, frac stages and distance between stages to optimize production and reserves. Based on the analysis of third party engineers, the estimated unrecovered reserves ("EUR") for the wells utilizing the latest completion methods could be in excess of 400,000 barrels of oil per well. The Company has a large position on the eastern side of the Nemaha Ridge consisting of over 63,000 net acres. "We continue to see improved performance while lowering our costs per well, making for some very attractive economics," said Wink Kopczynski, Jr., Chief Operating Officer. The Company continues to focus on efficiency and the Robinson #1-H was drilled in 15 days, compared to the play averages of 28-30 days. "I don't know if this is a record, but if someone has drilled one faster, I'd be very surprised," said Kopczynski.
The company is currently completing an average of one horizontal well per month and plans to continue at the same pace for now, then ramping up drilling in 2013. Kopczynski remarked: "We have proof of concept on the eastern, more oil-prone side of the play, now it is a logistical exercise to turn up the speed of the conveyor belt at the oil factory."
About New Gulf Resources, LLC
New Gulf Resources, LLC is based in Tulsa, Oklahoma and owns, manages and operates upstream energy projects in Texas, Louisiana, Kansas, California and Oklahoma. NGR is highly experienced in the application of advanced technologies such as horizontal drilling and multi-stage fracture stimulation to maximize the value of U.S. oil reserves.
SOURCE New Gulf Resources, LLC