Delta Oil & Gas entered into an agreement with Ranken Energy Corporation to participate in a five-well drilling program (the “2006–03 drilling program”) at Garvin and Murray Counties, Oklahoma. Delta has agreed to take a 10% working interest in this program.
This was followed by another agreement to drill three wells in the same region (the “2007–1 drilling program”). Delta has agreed to take a 20% working interest in this program.
These decisions were based on the geological information provided to us and on the successes we have already enjoyed working with Ranken on the Owl Creek Prospect.
2009–3 Drilling Program
On August 7, 2009, the Company entered into an agreement with Ranken Energy to participate in a four well drilling program in Garvin County, Oklahoma (the “2009–3 Drilling Program”). The Company purchased a 6.25% working interest before casing point and 5.0% working interest after casing point in the 2009–3 Drilling Program for $37,775. In addition to the total buy-in cost, the Company will be responsible for our proportionate share of the drilling and completion costs. During the year ended December 31, 2009, the Company paid additional drilling costs in the amount of $115,017.
Jackson #1–18 started producing in January 2010, the total cost amounted to $62,956 was moved to the proven cost pool for depletion. Brewer #1–20 was plugged and abandoned on June 2, 2010. Its cost amounted to $64,922 was moved to the proven cost pool for depletion. Miss Gracie #1–18 started producing in March 2010, the total cost amounted to $71,368 was moved to the proven cost pool for depletion. Waunice # 1–36 started production in June 2010 and was plugged and abandoned on September 23, 2010. Its cost amounted to $44,939 was moved to the proven cost pool for depletion. Joe Murray Farm #1–18 started producing in August 2010, the total cost amounted to $44,571 was moved to the proven cost pool for depletion.
2009–1 Drilling Program
On July 27, 2009, the Company entered into the 2009–1 Drilling Program for five wells which will provide 5.714286% Before Casing Point (“BCP”) working interest and 5.00% After Casing Point (“ACP”) working interest. The Company’s buy-in costs for each well is $2,625. During the three months to September 2009, the Company had paid buy-in, estimated drilling and completion costs for three wells, Saddle #1–28, Saddle #2–28 and Saddle #3–28. Saddle #1–28 and Saddle #2–28 started producing in November 2009 and Saddle #3–28 in December 2009, the total cost amounted to $96,633 was moved to the proven cost pool for depletion.
The 2007–1 Drilling Program
This prospect consisted of re-entering an abandoned well to re-evaluate two sands of the 1st Bromide sands and the top of the Viola lime. This well was originally drilled and abandoned in 1986 and an analysis of the logs indicates two potentially productive 1st Bromide sands. The 1st Bromide “C” sand at a depth of 4,796 feet has 4 feet of porous sand. Based on 3-D seismic, if the re-entry is productive, the prospect can be fully developed with the drilling of three additional offsetting wells to the south, west and southwest.
The re-entry to which we refer as the “Hulsey #1–8” was successfully completed and is presently producing oil in the range of 50 barrels per day and associated natural gas in the approximate daily amount of 50 Mcf.
The purpose of this well was to drill a new well to test a potential oil and gas reservoir in the 1st Bromide “C” sand at a depth of approximately 5,800 feet. This well to which we refer as the “Pollock #1–35” in the N.E. Anitoch Prospect was drilled to total depth but testing revealed no economically viable hydrocarbon showings and as such, the well has been plugged and abandoned.
Location preparation for this well to which we refer as the “River #1–28” in the West Riverbend Prospect is nearing completion to enable drilling in the immediate future. The primary objective of this well is the Viola Lime with emphasis on the Trenton and Middle Viola porosity development. Other wells in the area are productive with both oil and gas. The targeted depth of this well is approximately 4,000 feet.
The 2006-03 Drilling Program
All five wells have been drilled. Upon completion and testing of all the wells, it was determined that three of the wells should be completed in anticipation of the production of hydrocarbons. Subsequent to completion of these wells, two are economically viable at this time.
The first of these successful wells resulted from drilling to a depth of 6,807 feet in the Plaster Prospect. The Plaster #1 well encountered sizeable hydrocarbon showings in the 2nd Deese Sand interval and is now producing in excess of approximately 400 mcf of natural gas per day with small amounts of associated oil.
The second well which is currently producing is the Dale #1 which was a re-entry into an existing well. The total depth of this well is 5,400 feet and to date, the well has been producing in the range of 2 to 3 barrels of oil per day.
Subscribe to eNews Updates
- 05/21/2013 Delta Announces a New Independent Director
- 09/19/2012 Delta Oil & Gas Identifies Several Pay Zones in its new Texas Drilling Prospect
- 09/12/2012 Delta announces new partner on King City oilfields project
- 01/09/2012 Delta drills first well at its King City, California prospect
- 08/31/2011 Delta achieves stabilized production on Donner #2 Well in Texas prospect