Lutters #1 Well
Trego County, Kansas
| Location: |
Trego County, Kansas |
| Analog Production: |
Wells 1.5 miles away producing between 35 BOPD and 200 BOPD |
| Land Holdings: |
750 gross acres under lease |
| Interest: |
25% Working Interest, 20.4% NRI |
| Formation: |
Mississippian Dolomite,
Cherokee Sands |
| Depth of Test: |
5,000 ft. |
| Depth of Target Interval: |
4,800+/- ft. |
| Recoverable Reserves
Estimate: |
60,000 BOPW—240,000 Barrels potential fully developed |
| Gross Pay Interval: |
7-10 ft. |
| Number of Offset
Locations to Drill: |
2-3 additional |
| Projected Initial
Production Rate: |
35-100 BOPD |
| Production Facilities: |
Tank Battery Required |
The #1 Lutters Well oil well was successfully drilled on the Poston Prospect, Trego County Kansas during the month of May this year. The well encountered excellent quality 44 degree light oil in tests with 65% oil cut with 10% gas and mud with no water. A casing election was made and pipe set following well logging.
The #1 Lutters well began production as a commercially viable oil well on June 18, 2009. The well targeted oil in the Mississippi Dolomite and/or Cherokee sands. The location showed a significant 3D Seismic anomaly pinpointing the oil bearing zone. In addition, the 750 acre lease block has the potential for a multi-well program with 2 to 3 offset locations possible to fully exploit the acreage. Shipments of oil began in June. With successful offsets planned to the east and south the field could ultimately produce between 150 and 200 barrels per day.
The #2 Lutters well drilled encountered good oil shows but lacked the reservoir quality of the first location. With this gained knowledge, offset step outs to the east and south are now planned. The 2 additional oil wells are planned for January 2010 and the estimates of the lease ultimately delivering 150-200 barrels per day are still valid.
N.C.R.A. (National Co-op Refinery Assoc.) of McPherson Kansas, the oil purchaser, is regularly shipping oil for sale from the Lutters lease. The Company is closely monitoring the well production over the next two quarters. The well should stabilize over a short period of time which will allow for a more in-depth evaluation of future rates with a higher degree of precision. As oil production rates may ultimately differ from those calculated or anticipated; oil pumped to the tanks is therefore the most accurate assessment of any early stage producer.