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Details - Information last confirmed on June 28, 2021
Texas operator is seeking partners and/or an operator to join it in the development of an Edwards oil field at 2,000 feet drilling depth in Caldwell County, Texas. The field was discovered by a bypassed producer drilled several years ago, is controlled by an up-to-the-coast fault trap and is estimated to have 4.6 MMBO OOIP. Potential oil recovery is 1.1 MMBO based upon nearby analog fields.
Operator proposes a $2 million program to develop four vertical Edwards wells and one saltwater disposal well on a 308-acre leasehold. The initial risk investment to acquire one lease and drill and evaluate the first well is $300K. Full field development is estimated to require $9 million to drill 20 wells. There is secondary potential in the Buda and Austin Chalk. Projected investor economics associated with the $2 million program are excellent: Payout in 18.8 months, ROI of 4.79 to 1.00, and IRR of 54.2%.
Operator has focused on shallow oil developments in Caldwell and Guadalupe County since 1980, with significant success developing new production from the Edwards Limestone. The Edwards Limestone oil play of Caldwell County has produced more than 412 million barrels of oil since its discovery in the late 1920s. This production has been realized from 8,000 wells at depths of 3,000 feet or less.
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