Propell Technologies Group, Inc (PROP) reported initial results from the second well treated in the Tulsa, Oklahoma area that's part of the company's Oil Services Revenue Sharing Agreement (OSRSA) with a private oil company to treat up to 10 wells and retain 49% of the increased oil production revenues.
The treatment performed on September 28th for the Cottonwood Well #9-5 located in Creek County, Oklahoma increased in oil production from a closed-in well (i.e., zero production) to 44 Barrels of Oil Per Day (BOPD).
For the last five years the well had been shut-in due to mechanical problems and was not in production. When the well was shut-in, it was reportedly producing just 4 barrels of oil a day.
At a $65 net revenue per barrel and $10,100 weekly revenue share to PROP, this second well adds $520,000 in net revenues per year to PROP. To put this in perspective, every 50 barrels per day PROP earns from these OSRSA deals adds $1.1 million in annual revenues.
PROP used the same re-work/treatment plan as they did on the Cottonwood Well #13-6, re-perforating 10 feet in the Red Fork sandstone formation and then treating the well with its proprietary plasma pulse or what we call "microfracking" technology instead of costly hydro fracking the well.
The Company has 8 other wells in its Oil Services Revenue Sharing Agreement to treat that are in the same Red Fork Sandstone formation on the Cottonwood Lease. Many of the wells have been shut in for a number of years and were among the biggest producers in the field when they initially produced. Additionally, there are 60 other treatable wells on the Cottonwood Lease and literally thousands of other wells in the same Red Fork formation in Oklahoma.
"It's really exciting to be able to take an old well that wasn't producing, re-work it, treat it with our plasma pulse and put it on pump with such amazing success.," said Mr. John Huemoeller II, Propell's President and CEO. "This adds additional, immediate and recurring revenue to the Company and we have many other wells getting ready for us to treat with our technology."
With nearly 500,000 shut-in/stripper (under 10 barrel a day) wells in the United States…the potential for PROP is nothing short of breathtaking.
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