Between the years of 1920 and 1921 the oil wells in Warren County, Ky produced over 2,300,000 barrels of oil*(). Well data was only starting to be kept as records right around this time. No one really knows how much production took place before these years. Some of this production came from the very same fields that some of our investors already own a peice of. This is a good history lesson, one thing that can always be counted on in the oil patch is unpredictability.
Fast forward to the 1950's, this was a time before some of the technology that we have today. Drillers and operators relied heavily on a method, to find oil, called "closeology". This term is exactly what it sounds like. Being that no one to date has proven a method that's 100% accurate in find oil, these workers simply would find a well and produce it. Here is where "closeology' comes into play. Common sense says if there is one well, then there should be two and so forth. This is how they found oil fields and developed them. This is the same method that I use sometimes when locating a project for us.
Move again to the 1980's, a boom was taking place it seemed everyone was finding good wells and developing fields. This came to a stand still shortly thereafter. Warren County, KY has a very rich and long history of producing oil. On paper and through good old fashioned digging most folks believe the good fields have already been found and they moved on to greener pastures. They did not have the capital or connections to locate anymore of the "big oil fields".
Present day; In figure 2 you can see where I pulled the overhead well locations from the state of Kentucky. It actually shows all wells in a particular area. With both of the yellow arrows you will see the prominent, old oil fields to the north and south. They are separated by about 2 1/2 miles. To the immediate east is the town of Bowling Green, it is impossible to drill there. This means that the lease that I have is a close to we can get to Bowling Green. We are squeezed between two of the biggest fields in the county. You can can this on figure 2 with a blue triangle, which is almost to scale.
I have made some very solid contacts over the least several months in this area. In fact, the company that has been doing our completion work on our Gray lease has a lease that I negoitated for. You can see this lease in both of the maps below. In figure 1, I have decided to develop in a checkboard fashion. This is a technique used to maximize and pinpoint oil production. We will drill the first 3 wells (McCoy 4, 5,& 6) then the lease holder has the option to drill one. I figure they will excercise their option to drill. This will keep giving us field data as we move across it. I will be hiring a geologist on the project to aid in interpreting the information that is gathered from drilling.
There are two producing wells on the property. One was drilled in 50's, I believe, and still makes a few barrels a day. The other was drilled in 2013 and is making approximately 15+ bop/d. The driller who drilled it will be the same outfit that will drill our wells on this lease. This means he already knows what he is going to encounter and how to handle it. This lease is close to our Gray lease that has wells making money for us now. It is the same underground formation and should yield the same or better results. The one major difference between the Gray lease and this one is; this will be a brand new oil field. The possiblity of making 50+ barrels a day could be realistic. That is why we are all here.