Posts Tagged ‘Oil Drilling’

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.

Advertisements

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.

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.

OPEC Calls Emergency Meeting as Oil Prices Tumble

October 20, 2008

OPEC Emergency Meeting to Discuss Production Investment
As oil prices fell to below $70 a barrel, a price that hasn’t been seen since June 2007, the Organisation of Oil Exporting Countries (OPEC), has decided to move its scheduled Nov 18th meeting up to next Friday, 24th October. What worries them is that the widely fluctuating price of crude belies an underlying instability in the market and that the sharp decline in price is going to seriously affect the investment in new production necessary to the supply of future demands. The agenda for the meeting is expected to include discussions on reducing OPEC member’s production by about 1 million barrels per day in order to stem the price fall.

Interestingly, from a historical perspective, oil prices seem to have fluctuated wildly ever since oil production began, and is only belied by a couple of brief periods of stability both before the Second World War and then again after it up to the 1970s. Apart from those brief interludes the oil markets have always followed a cycle of boom and bust. For a great historical overview of the fluctuations of the oil industry have a read of T. Carlisle’s excellent article in The National – http://www.thenational.ae/article/20081018/
BUSINESS/130308948/0/LATESTNEWS

One thing seems very clear though, if prices fall to the low levels of the late 1990s then a lot of oil producing countries are going to be in trouble. Several countries need the price of a barrel of crude to remain within the price range of $55 – $95 per barrel just to balance their budgets, including Saudia Arabia at the low end, and Russia, Iran and Venezuela at the higher end of that scale. One of the big problems of past downturns was that it caused insufficient investment in production capacity to cater for the later increases in demand, one of the reasons for the extreme highs seen recently. This is one problem the industry is determined to prevent for happening again, and will be high on the list of subjects to discuss at Friday’s OPEC meeting. I’m sure many people will be watching that one closely!

For a full discussion of the upcoming OPEC meeting see Jad Mouawad’s article in the International Herald Tribune – http://www.iht.com/articles/2008/10/16/business/oil.php?page=1

Silicon Valley’s Venture Capitalists Support Obama Energy Plan

September 29, 2008


Obama’s pledge of $150 Billion for new, what has been termed as ‘Cleantech’ industries (meaning carbon-free energy technologies such as solar), has found support amongst Silicon Valley’s Venture Capitalists, who see cleantech as the successor to the dot com boom of the 1990s. Venture Capitalists like Google.org who in May announced their participation in BrightSource Energy’s venture financing with a $10 equity investment as part of their RE< C (Renewable Energy that is cheaper than coal) initiative. http://googleblog.blogspot.com/2008/05/googleorg-announces-investment-in.html

Whilst Silicon Valley groups like Cleantech & Green Business Leaders for Obama have gone all out raising funds for the Obama campaign, it is noticeable by contrast how the vast majority of Big Oil’s support has gone to the McCain campaign by nearly 4 to 1. Although McCain also backs alternative energies and also wants to give tax breaks for consumers who purchase zero-emission cars, a large part of his plan relies on offshore oil drilling and the building of 45 nuclear power plants neither of which are actually going to produce any energy for many years to come. Also, with only 3% of the world’s oil reserves at hand, it must be becoming obvious by now that oil is becoming a resource far to precious to merely burn. A huge number of industries and components rely on oil as a primary ingredient. There are alternatives for using as fuel and energy, there aren’t alternatives for a lot of these petroleum based products.

Obama’s says that his green energy plan will create 5 million new jobs, including many for the soldiers returning from Iraq who will be retrained for these industries. The plan has been described as having the “potential to be a game-changing move akin to the Telecommunications Act of 1996”, where the removal of local network monopolies triggered a tech boom in the communications industry. The question now is, will the entrenched vested interests of big oil have the clout to get McCain into the Whitehouse? There is no doubt that renewable energies will see development either way, but the drive and enthusiasm of important venture capitalists like those in Silicon Valley would be severely undermined by a McCain/Palin government.
To read more – http://www.bloomberg.com/apps/news?pid=20601109&sid=a3L0EYeR3vjA&refer=home

Investing in Oil and Gas Exploration

September 22, 2008

 

Investing in Wildcat Oil Exploration
With the price of oil so high at the moment, and likely to stay so for the forseable future, it is not surprising that many of the old oil wells are being looked at with renewed interest. Pockets of remaining oil that were not economically viable when prices were as little as $10 per barrel become  much more viable when the price is $120 per barrel. As a consequence many Wildcat oil operations are beginning to reevaluate some of these ‘played out’ oil fields. The question for us is whether some of these wildcat operations are going to make us a heap of money if we invest in them.

There are a few points to keep in mind before you part with your money. The first thing to remember is that big and successful oil companies don’t need to advertise for investors. This means that if you do come across an advertisement from a company seeking investment you need to do some background research to make sure they are not some ‘fly-by-night’ operation. That is where a company like the Energy Exchange (www.enex.com) comes in handy. They know the business and can give advice on what companies are worth investing your money in and which are not, and what sort of return you can expect from that investment.

The likely minimum you will asked to invest will be somewhere between $25 – 35k for a fairly shallow well with easy drilling, more for deeper wells which might require an investment of at least $100k or more. This kind of investment is certainly not for the faint of heart, and it is important that any potential investor satisfies themselves over the quality of the seismic data the company is basing their plans on. It is important that this is of the modern, 3D type which is much more accurate, and that the company has some record of success with this kind of exploration.

If this is too rich for your blood a less risky route would be to opt for buying shares of companies actively drilling in geological areas that have a high success rate of hitting good wells. For example, the Barnett Shale and Marcellus Formations being explored by the Chesapeake Company. Smaller investors might want to consider individual stocks. But if wildcat investing excites your interest then, certainly, good advice from someone with knowledge, such as the Energy Exchange is all important.

Drilling in ANWR More Likely with Palin as VP

September 1, 2008

 


The choice by Senator McCain for his Vice President slot, Sarah Palin, has brought attention once again to the thorny issue of drilling in the Arctic National Wildlife Refuge (ANWR), Alaska. Sarah Palin has made her position clear in coming out on the side of drilling in ANWR with a view to tapping in to the “multiple billions” of barrels of oil and “trillions” of cubic feet of natural gas there. Her position is that the amount of land affected by such drilling, in what is a National Wildlife Refuge, would be no more than about 2000 acres in an area that amounts to millions of acres.

John McCain has been against drilling in ANWR but with Palin as his VP pick is that view likely to change?  McCain recently told the New York Times: “People have said to me, ‘I’m going to bring you new information about ANWR, how environmentally we can make it safe. I’ll be glad to accept new information, but my position has not changed.’’ However, he was also against offshore drilling and has since changed his mind on that issue. The question, inevitably with so much press attention on the hurt caused by rising gas prices, is whether the pressures on McCain to come up with a sop to the voters will cause him to change his mind on this as well.

If the price of oil goes up, and therefore the price of gas at the pumps goes up, then so will the pressure to tap the ANWR resource. It would certainly decrease dependence on foreign oil, but its affects would not really be felt for about 15 years. Even then, there is the question of the effects on the wildlife. Proponents of drilling, such as Palin, argue that  of course it can be done safely using modern technologies. But those who remember the Exxon Valdez tradegy are never going to be fully persuaded on that point.

There is no question that the alternative energy genie is well, and truly out if the bottle. Whoever gets elected in November is going to have to implement some sort of alternative and renewable energy policy – though the level of enthusiasm put into such a policy will depend on who gets in of course. If McCain does get in then I think that drilling in ANWR will become much more likely. If Obama gets in – which seems much the liklier scenario, then I don’t think that drilling in ANWR will happen under his watch. In terms of investment opportunities, you may just want to wait a couple of months before making any final decisions.

San Saba Oil Exploration Project

August 5, 2008

Edgar Cayce standing outside Munsell #1 well, San Saba County, Texas, in December 1922.

Edgar Cayce standing outside Munsell #1 well, San Saba County, Texas, in December 1922.


Over 80 years ago, Edgar Cayce (known as ‘The Sleeping Prophet’) identified the rolling hills and streams of San Saba County, Texas, as containing the “Mother Pool — a major oil field capable of producing vast quantities of oil. Mr. Cayce’s venture into Texas to find this oil is widely acknowledged to be his biggest failure. Cayce’s well was sabotaged on several occasions by his own associates. “The oil was there”, Cayce lamented in a letter to a friend. “I just wasn’t equal to handling the men who were associated with it”.

The Readings make it clear that it is essential that those involved in this venture must proceed with Oneness of Purpose. Many staunch Cayce followers acknowledge that Cayce’s San Saba Readings were his biggest mistake, yet they are still willing to believe him in other matters. Now a new company is looking again at San Saba, one that very much has that Oneness of purpose. David H. Mangum, Petroleum Engineer, geologist, declares that –

“Cayce’s San Saba Readings were not a big mistake, as reported by the press and television documentaries. The Cayce Readings describe the structure of the subsurface of the earth in San Saba County and, astonishingly, modern seismic data show that the subsurface is as Cayce described. For this reason alone, oil discovery or not, the San Saba Readings can be counted as another success, not a failure as widely believed”.

Since the 1920’s, extensive geophysical surveys have been conducted over the area and several shallow wells have been drilled, providing a more complete geological record of the sub-surface strata. Some oil has been found in these shallow wells but not in producing quantities. There is mounting evidence that oil-bearing sands may, in fact, exist beneath a false basement or granite over-thrust plate. This over-thrust is now known to exist and it is estimated to be 25 to 50 miles from side to side. Previous wells stopped drilling when they encountered granite. Both modern technical data and non-conventional methods indicate that a huge reservoir of oil lies beneath this granite over-thrust plate. Geologist Dennis McMurdie says “There’s enough evidence now that I can feel confident that there is definitely a thick sedimentary sequence below what has been considered basement in central Texas. And it’s my belief that someday, somebody is going to discover a billion-barrel oil field in those sediments”. Dr. Cesar Abeigne, Geophysicist, reports that, based on his studies, geological conditions are highly favorable to trap huge quantities of oil. Dr. Abeigne estimates that the potential oil reserves could be larger than the East Texas Oil Field (six billion barrels) with production rates as high as 5000 barrels of oil per day.

Mr. Mangum also notes that, using the cable drilling tools of Cayce’s era, it was not possible to drill very deep, much less through a thick layer of solid granite. Today, modern drilling methods can drill over 30,000 feet deep and cut through granite without difficulty. Perhaps technology was one reason why the Readings said that Cayce should obtain 99 year leases. For whatever reason, Cayce himself did not follow his own readings. In his defense, even today, it is considered wasteful to purchase long term leases, when a few years is usually sufficient.

San Saba Exploration, LLC, has purchased technical data from many sources and has acquired the key oil and gas leases. Additional geophysical studies are currently underway to determine the extent of the oil field. Results from a recent geophysical survey show a thick column of potential hydrocarbons deep beneath the site of Cayce’s well drilled in the 1920’s. This venture is not for the faint hearted. “Nervous” or “fearful” money will not be accepted — no one should consider participation in this venture unless they can afford to lose the entire amount. (See Cayce Readings 953, 3777, 4906, and 5628.) Anyone interested in further information can contact David at davidhmangum@gmail.com

With Calls for more Drilling, is Now a Good Time to Invest

July 28, 2008


With all the recent clamour for more oil well drilling to solve both the high gas prices and America’s dependence on foreign oil, is this perhaps just the very time we should be thinking of investing in new oil production?

Here are a few points you might consider – though always check the current conditions, both in terms of price trends, legislation and factors local to the individual project –

Historically, financial rewards for investing in oil wells has been great – often with a return on investment of 10 to 1 or better, and often within a releatively short time scale.

Also, the risks are far less than they used to be with many projects having a 90% probability of success or better. Government has also introduced incetives to encourage domestic drilling with certain tax breaks. Individuals’ entire investment is 100% tax deductable, with 65 – 80% being able to be written off in the first year. The income derived from such investments can be up to 100% tax free as well!

Drilling costs are also a lot lower then they used to be and recent improvements in technology have not only improved recovery, but have also reduced risk. With traditional revenue sources for drilling moving away to the bigger oil fields elsewhere, it gives the smaller, individual investors an opportunity to get in on the smaller projects.

And with TruTV’s new series Black Gold now on the small screen, you can tap into all the wildcatting excitement for yourself!