Archive for the ‘Oil Drilling’ Category

Central Texas Exploratory Well Deepening Venture – #9020

February 23, 2009

Central Texas Exploratory Oil Well Deepening Venture
An independent oil and gas exploration company plans to deepen a previously drilled well in Central Texas with expectations of finding a significant oil and gas reservoir. In 2006, this well was temporarily stalled due to financial considerations after a $2,500,000 investment that took the well to 12,120 feet. The main geological objective was not reached, which geologists estimated to be about 3000 feet deeper. The geological team has evaluated the well logs and other relevant data and they have concluded that the probability of discovering significant hydrocarbon reserves at this location looks more compelling now than it did before starting the original venture.

The electric log from the original well has been analyzed by a highly reputable professional log analysis company and they have determined that there is a shallow “bail-out zone” behind casing which will probably produce about 300,000 cubic feet of natural gas per day if it were to be perforated. Three PhD earth scientists (two are professors associated with major universities) have analyzed the hard data collected to date and found additional evidence that leads these professionals to believe that there will be producible hydrocarbons from this well bore. Upon discovery of oil or gas, this small company, with its currently leased acreage block (8,000 acres) will be well positioned to be the leading company to develop this part of Central Texas. Minimum $50,000, maximum $5,000,000.  

If you are interested in this investment opportunity please contact us at the Energy Exchange for more information.

Cayce Oil Drilling Venture – #9028

February 14, 2009

Edgar Cayce Drilling for Oil in Texas in the 1920s
If you do not believe Edgar Cayce is credible then read no further. In the 1920s, Edgar Cayce gave several readings that said that a Mother Pool of Oil was located at a specific spot in Central Texas. As strange as this seems, this prospect is supported by a significant amount of modern technical data, including a deep water well that flowed oil to the mud pit while drilling. A very recent geological study from a highly respected geological engineering consulting firm determined that there is a high probability that much of this acreage (17,000 acres) will produce oil. A separate PhD geophysicist’s study concluded that the area contains a huge oil field.

There has never been any oil production in this county; however, the acreage has never been adequately tested. This is a wildcat drilling venture; however, based on the technical data, this project has a very high reward-to-risk ratio. Minimum participation $10,000 (only from private shareholder); maximum available $1,000,000. Contact the Energy Exchange and Project Coordinator, David Allisone will contact you with additional information.

Oil Investors Better Protected Under New SEC Rules

January 5, 2009

 

oil investors better protected under new SEC rules
As from last week, under new Securities and Exchange Commission (SEC) rules, investors will have much more information on which to base their investment decisions. Business Week  reports that the changes, the first in 25 years, are intended to reflect improvements in the technology used by companies to determine their proven reserves. It also requires that petroleum companies’ assessments of their reserves be independently audited.

For a complete list of the new revisions see the full article here – http://www.businessweek.com/ap/financialnews/D95CJU0O1.htm – but, overall, these changes should provide better protection for the investor in terms of allowing him or her to make informed decisions.

Small Domestic Refinery Seeks Capital Expansion – #9048

December 31, 2008

Utah Oil Sands Refinery Investment
President Bush says that the USA should be aggressively building refinery capacity, however new refineries must clear very high environmental hurdles. This small independent refinery in Utah is already permitted and needs funding for a planned major expansion. It is located in a remote area away from population centers and it is the closest refinery to the major oil reserves in the oil sands of Eastern Utah. These proven oil sands will be developed – it is only a matter of time. The other refineries in Utah are owned by major oil companies (Chevron, Phillips, Flying J, Sinclair) and are all located in the Salt Lake City metropolitan area.

This independent refinery is strategically located adjacent to a rail line, a pipeline, and it is just off Interstate 70 between Salt Lake City and Denver, Colorado. The near-term focus, following refurbishment and the resumption of operations, will be to produce gasoline and diesel fuel. Later this refinery plans to upgrade its processing facilities, add a rail trans-loading facility and add the capacity to process heavy oil from the Eastern Utah Oil Sands. This Refinery has the potential to gradually expand into a major commercial refinery as the Utah Oil Sands become a major source of oil for the USA. This refinery seeks immediate capital infusion of $12,000,000 with a commitment for at least a second equivalent tranche six months later. Minimum participation is $120,000.

Please contact us at www.enex.com if you would like more information about this investment opportunity.

Gulf Coast Well Workover Program – #9022

December 29, 2008

modernloggingtools_oil
A group of highly qualified engineers, geologists, and electrical log analysts have united to form a new oil company to re-enter shut–in wells along the Gulf Coast and produce the oil and gas that was left behind by the large oil companies. Two of these engineers are former Schlumberger Engineers. The President of the company wrote the training manual for Schlumberger on how to find oil from old electric logs. The Company also has a logging tool that can find oil behind pipe that cannot be seen with standard logging tools. Funding in the range of $50 to $800 million will be required to purchase the remaining Proven Developed Producing reserves (PDP) in mature oil and gas fields, each of which will be structured as a separate LLC. The purchaser of these currently producing reserves will receive a good Rate of Return while the Company will use money from its $5 million Private Placement Offering to increase the production from these old wells. Smaller investors may participate directly in the Private Placement Offering for a minimum of $100,000.

Please contact us if you would like more information on this project.

Texas Overthrust Exploration Venture – #9019

December 26, 2008

Investment - Texas Overthrust Oil Project
An independent oil company believes that it has located a potential billion-barrel oil field in a region of Central Texas called the Texas Overthrust. New evidence now absolutely proves that this region has a granite plate over-thrusting sedimentary rocks that are known to contain hydrocarbons. This new information confirming the “overthrust theory” as an actual “overthrust zone” makes this venture more attractive then ever because some of the largest oil fields in the world have been found in similar overthrust regions.

A foreign oil company committed to completely fund this project and drilling will begin in 2009. This project is still being carried because there is an oil company participant who wants to diversify some of his holdings into another project. Large investments are no longer available; however, some private shares are available for as low as $10,000. Please contact us for details.

Protests Over Utah Oil Lease Auctions

December 24, 2008

 

An interesting piece from last night’s Rachael Maddow Show on MSNBC which touches on some of the oil company activities highlighted in Antonia Juhasz’s book, ‘The Tyranny of Oil’ (see earlier post). Most people agree that new sources of oil need to be found. The question that needs to be asked is “at what price are we willing to get this oil?”.

The Tyranny of Oil

December 15, 2008

 

book_tyrannyofoil
Now, as a potential investor, there are two ways to view the book I have just read by Antonia Juhasz called “The Tyranny of Oil: The World’s Most Powerful Industry – and What We Must Do to Stop It. The book, just published by Harper Collins [ISBN 978-0-06-143450-1], and available at your local library it seems, is a damning indictment of an industry that is under-regulated, secretive, controlled by too few people and which wields excessive power and influence over U.S. elected politicians, all to the detriment of the citizens of the United States and anywhere else it finds itself operating, their economies, and the world’s environment. Don’t let their adverts fool you into thinking they are ‘part of the solution’ – they are no friend to alternative energies, as Antonia’s book reveals.

The ‘here-we-are-again’ history outlined in the book is particularly interesting given the excesses of “Big Oil’s” previous incarnation – John D. Rockerfeller’s Standard Oil Company, which had to be broken up in the early nineteen hundreds because of the dark excesses of its monopolistic hold over American democracy. Now, the spawn of that breakup have, with the anti-reglatory ideology of the Reagan and Bush years, once more merged back together to the point where their unbridled greed and power is once again threatening the very democracy of the United States. Juhasz argues that ‘Big Oil’ must be broken up again – and this time permanently. It is a great and sobering read for anyone interested in the oil industry, and there is further information and interviews with the author about the book to be found on the tyrannyofoil.com website.

What does it mean in terms of investment in the industry? Well, if you are a futures trader then I would advise a career change, probably sometime in the next 6 – 12 months. I think for the smaller investor it will actually open up many more opportunities as the industry is split up into different operating entities, such as production, refining, marketing and so on, and when more independents are encouraged to re-enter the industry again. As for those of you thinking more in terms of some Exxon shares, perhaps you might like to read Antonia’s book before making that decision – there are always two ways of looking at these things.

Big Oil Companies May Buy Out Small Producers

November 24, 2008

 

 

USA Crude Oil Production 2005

Crude Oil Production 2005

Now here’s an interesting dilemma. Everybody is all fired up to “drill, baby, drill” so that we don’t have to spend so much money buying the foreign stuff; prices are high so there is lots of incentive to invest in new production; there’s lots of diversity in terms of large and small producers; and the lifting of restrictions of offshore drilling means new territory to be explored. And then the the price falls. . . 

“Altogether, the nation’s roughly 5,000 independent operators account for 68 percent of oil and 82 percent of the natural gas produced in the U.S., according to the Independent Petroleum Association of America”, to quote an article by CNN on Friday (see full report here).  But, the report goes on to highlight, with the price of crude falling to below $50 a barrel, and combined with the difficulties of obtaining credit because of the financial crisis, and suddenly all that drilling doesn’t look quite as attractive as it did a few weeks ago. An interesting potential side effect is that the combination of falling prices and tight credit could lead to many of the smaller operators being swallowed up by the big boys.

We are all aware of the record profits made by the big oil companies in recent months and this means that they have fairly hefty cash reserves on hand. There are also a lot of small producers who have readily exploitable land-based properties but who are struggling to find the finance to work their claims. Now, for the large, cash-rich companies these small land-based properties might become quite an investment bargain when compared to something like the costs of exploring new territories offshore. Even Chesapeake, America’s biggest gas producer has been cited by CNN as a potential BP target. It will at least mean that those territories will be worked whereas under the small producers they may not have been, the article concludes, but much is going to depend on how long those prices stay that low, and how quickly the big boys act in the meantime.

Falling Gas Prices Feel Good But Are Stifling Small Operators and Innovation.

November 17, 2008

Small investors support stripper wells
T. Boone Pickens has certainly been doing the rounds of the talks shows this past week. Not only was he on Meet The Press on Sunday but he was also talking to Jon Stewart on The Daily Show only a couple of days earlier, no less. One point he made very succinctly was that although the current low prices at the pumps are making us all feel good about filling up our SUVs it is having a damaging effect when it comes to innovation in renewable energies, and also making many of the small independent operations in the U.S. economically inviable.

In a very interesting article by Andy Vuong for the DenverPost.com,  Andy highlighted the plight of the nations ‘stripper’ wells. A ‘stripper’ well, whether it be drilling for oil or gas, is defined by the federal government as producing not more than 15 barrels a day. What I hadn’t realised is that these small stripper operations account for as much as 18% of U.S. domestic oil production and 9% of natural-gas production, whilst supporting as many as fifty thousand jobs nationwide. Many of these small operations are supported by small, non-operating investors and while oil prices were high they were a worthwhile investment. The problem for many of them now is that with prices falling once again, while costs and environmental regulatory requirements are increasing, they very soon become economically inviable.

The other problem falling prices create, as T. Boone Pickens highlighted on Sunday, is that they stifle both the determination and the investment needed to stimulate the progress towards renewable energy. One example is Picken’s plan for the world’s largest wind farm. While natural gas prices were high ($12 per million BTU in July), replacing the money the U.S. spends on foreign oil with wind power was feasible. But with prices now down to $6 per million BTU the returns are not high enough to warrant the investment. Mr. Pickens thinks that crude oil prices will be back to $100 within a year. Ironically, higher oil prices will not only be be better for the small domestic oil and gas operations, it will be better for the country as a whole. As Picken’s keeps reminding us, dependence on foreign oil is a security issue. Whatever the short term economics, the U.S. has to move towards replacing its dependence on foreign oil with its own supplies of clean renewable energies. We will always need oil as well, even if it is not to run our cars or heat our homes. Hopefully prices will recover quickly enough to retain a good mix of small to medium-sized oil and gas operations across the U.S. One thing we don’t need is another 50,000 people out of a job at this time!