This section will add insight to what actually goes on day to day with operating an oil company in Kentucky.
March 3, 2015 Today its finally 32 degrees. During the Winter time I have to pick and choose my moves carefully. What would be easy to do during Summer can become an expensive chore during the Winter. For example, as I am preparing to drill the Gray #3, for the Friendship #2 program, there are variables that come into play. Field conditions are certainly a big factor right now. You can see by the pictures, in the pictures/video tab, the equipment that we use is quite large and heavy. I will have to contract a bulldozer and an operator in order to move equipment up and down the hill where this well site is located. Some of you are familiar with large equipment and trying to manage its' movements. As we continue and move further along, I will show each of you how we progress. Many of you will see firsthand, while others will watch from the safety of their pc's and devices.
From the video conference, you all have learned that there is a lot more that goes on than just drilling a hole in the ground. As we keep developing this lease, there will be a great deal of engineering that will go along with it. I would ultimately like to start a checkboard pattern across the lease. A checkerboard is just what is sounds like. This would allow us to squeeze almost every possible well on the property that we could and develop it correctly. Patience and persistence will be our best move here.
March 6, 2015 Mother Nature was kind enough to dump 24 inches of snow of us in 24 hours. Over the next few days I will have been of time to do some researching on some leases closer to the office that we may develop in the future. Digging through 60 years of data is time consuming, but often there is some good information to be found.
March 9th, 2015 Having spent a weekend reading, digesting, and understanding 6 decades of information, I am going to take the next step and start doing the field research for another lease to add to our total acreage. The melting Winter snow is throwing up huge roadblocks. As the snow recedes flooding starts to come into play. While the flooding and highwater will not affect our wells in hurting them. It does sometimes restrict my ability to pump them along restricting my ability to get to well sites and the ability for oil pickups to be made.
March 12, 2015 Spending the majority of today double checking the scheduling of several, simultaneous events that are getting ready to happen. There are many moving parts that go into drilling/completing/and producing a well. What I do on "office" is close to how an quarterback operates his team in a huddle.
I keep reading these articles on how the "experts" say oil prices are down to stay and cannot help but to chuckle some on the inside. No one can predict the rise or fall of our oil prices. Yes they say we have all of this extra production stored; all it takes is one uprising somewhere in middle east to make it shoot back through the roof. This is just my opinion.
March 20, 2015 Today, I wish there were two of me. I have quite abit of field that needs to be addressed, but have a good amount of office work I need to attend to. The drilling of the Gray 3 well yesterday was great. Even though is was probably a mile walk-in and up a huge hill in the rain. Drilling "in" a well never gets old, I still find it fascinating. I enjoy watch the drilling cutting come and taking samples. Often, in this area, you can see the oil trapped inside the cuttings. Which was the case yesterday. As the Gray lease is an engineering project, to say the least, I am constantly wrestling with decisions of where to maybe save a day by setting a tank here or running a line there. When we are done with it and it is in production, it will be a work of art.
March 27, 2015 One of my favorite parts of running this business, is getting to do research. I enjoy pulling old logs from wells drilled 60+ years ago and comparing them with logs of my own. The data is available and lots of it. I often find my desk and walls pasted with logs from the years past. The fellow that mentored me years ago had a favorite quote he used: "history tells the future". It is true. We're going to put some of this theory to the test over the summer as we keep developing our fields.
April 3, 2015 Rain. I am chomping at the bit to get the perforation truck on site to open up our Gray #3 well, but I cannot fight this battle against the relentless rain. I pondered bringing my dozer operator back, but I would just destroy the 1/2 mile dirt road up the moutain. Smart money is telling me to wait. Today I am working on assignments for an assortment of wells stretched acrossed the state. Later, I am going to dive back into researching a possible producing oil lease that I may pickup. Years ago, I used to follow the oil prices hourly almost like I was tracking a stock. Over the years I learned not to be stuck on it. Prices will move up and down. Anymore, I just find a yearly average to base my projections on. There is a difference between owning an oil well and an individual stock.
April 14, 2015 I had a very exciting night/morning last night. I stayed onsite until 11 p.m. while my two crews stayed well after 2:00 A.M. The Gray #3 well is the reason I do this. After the acid treatment, it came to life. I am finding myself being stretched as there is work fixing to happen on another lease, here where my office is. It makes me happy to see the "trees" are starting to bear "fruit". I keep standing back to get a look at the bigger picture, however the picture is getting bigger as well. I researching and thinking about some key moves I can make for us all. The lower oil prices have literally starved out some operators and they are putting wells up for sale. The financial health of our company is in very good shape. We carry no debt as we move forward.
April 20, 2015 Had a super productive meeting today with two gentlemen that have a lease in Warren County, KY today. I have been studying on this lease for several months now. I am probably going to pick it up soon. This is a fairly large lease, with room for up to 30+ wells. The ground and area are completely flat and always accessible which would cut out delays for weather. This acreage is wedged betwen two of the biggest and oldest fields in the county. From a production standpoint, it would be brand new production. It feels good that we have made enough "noise", in a good way, that people are now seeking us out to drill on their land. Now, if it would just stop raining...
April 27, 2015 I have income on my mind today. Today I have been plotting and picking on where to spend some funds to up/ and get a few of ours wells running at full capacity. Its starting to weigh on me, as I want everything running full steam ahead. Spent the majority of the morning plotting on a surveying app on a new lease we are acquiring. I am excited about it, as it is a new lease with only a handful of wells on it.
May 10, 2015 After experiencing some technical issues this week and last week in my office, I am way behind on updating current programs and finishing up new ones. I have all information backed up, but my personal pc is the one that crashed. With that being said, I have been severly limited on electronic reseach and development the last 10 days. However, getting the new pumpjack on the Reeves #2 (Friendship #1) was sure nice. I picked up some prime acreage that I mentioned a few weeks ago that hopefully we will get to drill on at some point.
May 14, 2015 The new Churchhill unit I sat on the Reeves #2 is nice. It came with a tool on it called a "gear reduction". You can see it on the video, it is the two pulleys beside the motor. This tool allows me to changes the speeds of the pump dramatically. I can add a small pulley to it and almost slow it down to a crawl or add a bigger one, like I did and make it move much quicker. This gives me options on how to produce it for the long haul.
May 27, 2015 The state of Kentucky (Division of Oil/Gas) was kind enough to implement a new operating fee* this year, I keep reading over their changes in policies. It almost seems like they want to make it too tough for operators to actually run the business. It is not excessive, but I can see a trend coming. The state also, loosely, asked all operators to attend a well site relcamation seminar. It does not seem to be mandatory, so I probably will not be driving for 4 hours to listen to someone tell me how to plant grass around a work site. On another note, as oil prices continue to sputter, we are weathering the "storm" quite nicely. Possible acquisitions are revealing themselves to us.
June 7, 2015 I have doing some reading and research this morning on oil prices. In my opinion, it seems that oil keeps testing the masses to see how it will react. I read oil inventories are at an 80 year. It seems that if oil is hanging around $60 and we are at almost alltime high in inventory, what happens when inventories drop to all time lows? It is an finite resource. Just got me thinking about the longevity of our wells. It sure would be "sweet" to capitalize on these movements.
June 16, 2015 We have not taken consecutive days off in the office since April of last year. I am forcing us to take a break the rest of the week.
June 22, 2015 We are back in full swing.
June 28, 2015 As many of you know, owning and operating moving peices of equipment requires constant maintenance. This week I ordered and installed some more new parts to one of our wells in Muhlenberg County, KY. As I prepare for one of our most exciting drilling prospects, I am attempting to get alot of groundwork done for the next 20+ wells we are going to drill. I find it quite interesting that eqiupment dealers and landowners, who would not deal with us 18 months ago, now are approaching us. We have become a player in the oil patch in here in Central Kentucky. I am still balancing the need for us to actually acquire some larger machines to help expidite the processes we are getting into. I have negotiated mightily with the lease holder that has the Gray lease. I am not getting where I want to us as of today. I have firmed up the rights for us to drill and development the McCoy lease for as long as we like. It offers some major advantanges that the Gray lease does not. Mainly, location, it is super accessible at all time, which will cut down drilling, completion, and production times.
July 14, 2015 I have been combing over lease agreements and maps over the last few days. This is one of the less glamorous parts of being an oil producer. However, by keeping an eye on these details I can find opportunities for us down the road.
August 1, 2015 There has been alot of activity this week in the field. Pulling equipment out of a well is an easy feat, but getting an available was a chore. At the same time the drilling crew was moving to start the drilling of 3 new wells. With these events happening while tool trucks, pipe vendors, concrete trucks etc, it is hard to keep an eye on it. I have a good guy (group) that has been assisting with rounding some of the capital needed to complete these projects. We work like other won't so we can give like other's can not.
August 5, 2015 I took a step out on the Orion project. I hired a drone operator to take the aeriel pictures and videos. To me, this is some solid intelligience to use in how we develope this field. Plus, as an overall tool to show people the true scope of operations. I have partners all around the world that will probably never make it out to the oil field. It is gratifying to show how things actually look like. With the 3 wells drilling consecutively, I have effectively starting a conveyor belt of action. With planning I have been able to keep contractors and trucks moving at about a 90% effeciency clip. I will take it. Given the success that I planned for, opening up the Real McCoy #2 is a no brainer. I really can not anticipate why someone would not jump all over another multi-well package.
August 17, 2015 We have had a ton of success over the last 14 days, so much I want to do a few more wells before Winter rolls in. Typically, I would spend some time shuring up projects, but I feel compelled to keep going. Parts are starting to get scared in the oil field, calling and ordering today and getting parts out to the McCoy lease.
September 14, 2015 Onward and upward. It has been a very exciting last 45 days or so. We brought in 3 great wells, though the powers that be decided we were only going to put 2 of them on pump. And that is ok. I am in full on construction mode on the McCoy Lease, building infrastructure for each well that is going in there. At the same time, I am putting together some plans for many of the other wells that I have to get them retreated/cleaned up, that will make them even better.
October 4, 2015 In principle I took a few days off last week, but meeting with some folks to buy equipment counts as working I guess. I made a few moves that immediately helped us as a few you have seen already. I have no probelm at all passing the savings along to each of you. I did not have to lower the invesments on a few of the projects. I also did not have to raise the owernship interest. I did this for my partners. This thought process has paid some major dividends and I do not foresee changing it.
October 7, 2015 Days like today, I thoroughly enjoy. When one of the pumpmen gets to call in oil pickups, it makes me smile. I really enjoy getting to let people know this. It is awesome to come full circle from drilling to getting dividends that makes this all work.
October 26, 2015 Made a key acquisition today. I picked up a producing well, to add the bottom line. I am starting to have my time pulled between finding and helping existing customers. Due to the depressed oil prices, lots of equipment and wells have come up for sell. Its out there and we're going to find it. Got a good game plane together for the Gray #2 today, cannot wait to work on that well. There is quite abit happening behind the scenes, but some of the efforts have been realized with the lowering of the costs on the Real McCoy 2 & JV7.
November 23, 2015 Finally got the JV7 well started today. I am trying out something new with it. Having a live stream going while drilling a well is something else. I like it for the fact that I have partners located in many different time zones and postal codes.
December 10, 2015 It has been a challenging 2 weeks getting the 7 well online. I find myself torn between letting people off work and getting the work done. I got this done this week and am working on a large acreage deal for TE, actually its two leases.
December 17, 2015 It has been a challenging year to say the least. We got some wells online along with absorbing a few dry holes along the way. Next year will be moving year for us. For those who watch golf, "moving" time is when you make your move towards the finish line and play your best. We have picked up enough acreage this years to keep us quite busy. Hope everyone has a good holiday break.
January 8, 2016 Landed us a giant lease this week. It took me almost 2 years to get it in order. Today, for the Belton #1, I included the partners down to 3,000 feet, so if when I deepen this well, they will get that production. Also, a perk is this lease is 15 minutes from my office, meaning I can be there everyday if I like. There is a workover rig, I have onsite that I may pick up for us. I am taking a bobcat and leaving it there to use, in order to save time and rental fees for dozers.