DALLAS, April 26, 2016 /PRNewswire/ -- Redhawk Resources Management III, LLC announces the fulfillment of its Redhawk Resources - Fund III, LP. Jack Nichols, Executive Chairman of Redhawk Resources Management III, LLC and Managing Partner of Redhawk Investment Group, LLC, said, "The fund has been fully subscribed and is closed for further investment. It has been a team effort."
The fund is located in the famously productive Permian Basin just north of Fort Stockton, Texas. The 3800-acre project consists of the purchase of 70 conventional vertical bore wells originally developed and drilled by Gulf Oil Corporation. In conjunction with StableRock Energy, the operating entity, the partnership plans to enhance and develop the project into a water flood over the next 24 months.
The goal is to re-work approximately 20 of the existing wells to pump off a significant amount of primary oil still in place. Forty wells are to be converted to injection sites. Two to five water flood stations will be developed, and several new wells will be drilled to enhance production and complete an adequate geometric pattern maximizing flooding capability.
Nichols was initially attracted to the project by the fact that, at 2.5 million barrels of oil produced, only 4% of the oil in place had been extracted through primary production and the spacing on the field was liberal by Permian Basin standards. Also, the field abuts and/or is adjacent to two water floods owned by majors and have been in production since 1978. The two other areas are similar in size and number of wellbores and are still producing 220 and 90 barrels of oil per day respectively after 35 plus years of production.
Funding of the project in such a tenuous time is a testament to the fact that a properly acquired property with a good goal-in-sight development plan, conjoined with an excellent business model still works for the gainfully oriented investor.
"The success of this project has sent us back to the drawing board. We are considering several options, but at this point another project in the Permian Basin is looking awfully good," says Nichols.
For further details, visit www.redhawkinvestmentgroup.com.
SOURCE Redhawk Investment Group, LLC