Projects
The West Texas Multi-Well Joint Venture
This was an acquisition of 39 producing wells within four separate counties in the Permian Basin. The wells were averaging approximately 31-37 barrels of oil per day with an average of 250-325 mcf of gas daily. Funding amount was $2,475,000.00, which included a capex budget for repairs and improvements to the production. Well production has increased in the first 10 months to an average of 70.5 (avg) barrels of oil per day.
Revenue averages 1.5% to 1.75% per month, targeting an annual return of approximately 21%, that we continue to try and increase. This project has also delivered phenomenal tax benefits to our partners as well as attractive revenue.
PETX 29 Well Asset Acquisition Joint Venture
A strong purchase of 29 producing wells, with 11 salt water disposal and injection wells. This acquisition has proven to supersede our expectations, which were initially a 24% projected annual return. With no capex budget, we were able to increase production from 31.5 barrels of oil per day to 48-52 barrels per day, and negotiate salt water disposal contracts with neighboring operators that have pushed our earnings outlook to what should be 31% in year one alone. This project also came with some nice tax benefits for our partners.
PETX Lutz 1 - 2 Well Joint Venture
We purchased a small lease with 2 producing wells for $60,000.00. The lease was producing an average of 3 barrels of oil per day. We funded an additional $392,422.00 for the cost of reworking 2 wells. We have completed a 12 stage frac on Well 1, and the well IP’d at over 170 barrels per day, and produced 315 barrels in the first 36 hours with strong gas production as well. Our target is to pay back our total cost within 6 months, on a well that should generate consistent revenue for the next 7-10 years.
Fortified 56 Well Acquisition Joint Venture
Our most valuable asset purchase to date. These wells average 80.5-105 barrels of oil per day with over 700 mcf of gas. Average net revenue per month of $94,400.00-$108,000.00 after all costs on a purchase price of $3,500,000.00 for a 2.7%-3.1% projected monthly return.