We would like to find a capital partner and take a ¼ carry. No Brokers.
The Vaughn and Bean fields are located just Northwest of Ozona Texas in the south eastern corner of the Permian Basin. The fields primary production is from the San Andres formation which is contiguous in the area and typically holds 3 members, the A, B and C. The San Andres members are typically located between 1200’ and 1500’ below the surface. In addition to the San Andres, the wells also include additional productive formations in the Grayburg and Queen formations.
The subject property, “the Vaughan Lease,” is a relatively contiguous lease encompassing approximately 6,000 acres. The lease is currently producing between 57 and 62 BOPD which has been independently verified through independent gauging of the tanks. The lease is owned by an older individual, out of San Angelo, Texas, who has had the lease for approximately 13 years and has done considerable work to the lease. Prior to his ownership he worked on the lease for over 40 years. He remains available for consultation on well condition and historical knowledge. At present, the lease has a negative decline curve due to work that is being done on the lease and engineering that my company,
He is in his late 70’s and has decided to exit the business completely. Because of family and health conditions, the countless hours of support that we have provided him, and because we are very active in the area, he has provided us with the exclusive opportunity to purchase the lease, production, mineral interests and equipment from him. He is offering 75% NRI and 100% WI to Bonfire.
Given our position in the field, we have spent hundreds of hours reviewing logs and understanding the formations at play. Our review has indicated that there are nearly 90 wells to be drilled that are termed as probable or better and 39 wells to be drilled that are classified as proven (these are the wells that we propose to drill). In addition to the new well work, the northern part of the lease is perfectly drilled to perform an engineered water flood and dramatically increase production. There are 2 wells that were drilled deep on the property, with good shows in our zones, but were not completed because the driller did not hold title to the uphole zones. These two wells are also very good candidates to recomplete. Of the existing 44 wells, over half of them would dramatically benefit from some engineering review and remedial action. These wells need simple work done in the form of a light acid job, pump replacement, hot oil treatment or simple pumping unit work to dramatically improve production. Bonfire Operating has recently discovered a significant value add formation in the Grayburg. The Grayburg is not present in all wells but is dominant in the southern portion of the lease. The Grayburg can easily be completed with a perforation and acid treatment and could ad as many as 10-15 BOPD per well and double the EUR of the lease. Finally, these wells are producing gas which is not currently being sold. The infrastructure is in place to move the gas to a pipeline however it is just being vented at current. Another aim of this project will be to begin selling gas to the pipeline to improve return potential.
It is our view that this lease provides an opportunity to provide significant production increases with minimal risk.
Asking Price $12,000,000
Sales Available On Request
Profit Available On Request
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