The Sebree, Kentucky Oil Development Program
To follow our progress please select a link below
December 17 2009
- Acquisition of Oil Producing Asset Completed
- View the Investor SlideshowJanuary 10, 2010 - Second Well Now Producing Oil
ABOUT THE ASSET
The leases are located in northwest Kentucky. The initial focus area comprises three leases located in a prime oil producing region in the Illinois Basin. Aus-Tex and KOS Energy have identified a geologic fault on the southern edge of the acreage that indicates a large volume of oil is potentially trapped and recoverable. Historical well production also supports this belief.
A significant amount of data has been collected about the oil trap and has been sent to an independent geologist for the development of a reserve report. The McClosky formation is the focal point of the research which, if successful, would support additional drilling of 2,700 foot wells similar to the Russell 1A. Five wells on the property all produced oil prior to being shut-in several years ago.
This held acreage is a small part of a much larger, well established oil field commonly referred to as the “Sebree Field” which contains hundreds of oil and gas wells and includes major transport and delivery infrastructure. The availability of this infrastructure reduces operating costs and drives more reliable and competitive delivery of services.
HELD INTEREST
Working Interest of 100%
- 50% to Aus-Tex
- 50% to KOS Energy
Net Revenue Interest of 75%
- 50% to Aus-Tex (37.5%)
- 50% to KOS Energy (37.5%)
- Remaining Revenue Interest 25% to seven individual interest holders