Today was fairly event free. East Central Electric was scheduled to hang the transformer and meter at the Llama 13-2 location,….they were a no show. They have also been scheduled to hang the transformer and meter at the Llama 13-1 location tomorrow morning.  We will see what happens, possibly they will do both tomorrow.

Adam’s Tank & Lease did move in on the 13-1 location to tear out a few trees and brush, level out, and build the pad for the tank battery. Tomorrow they will be delivering the oil tanks, sw tank, gunbarrel, and separator. They should have the entire tank battery up and running by Saturday.

More as events develop.

Since our last update we have been able to get all the Oil & SW flowlines laid, trenched, and buried on the 13-2 well. We only have the Reta cable for electricity to lay, still waiting on East Central Electricity to hang a transformer and meter.

Today, on the 13-1 well we were able to finish boring under the county road (after five attempts, something hard under there) and laying the SW line across to the Sw pump which will pump our Sw on down to the Sw disposal well. We have the oil flowline laid & stretched out ready to be trenched in to the 13-1 pumpjack. We still need to lay, trench, and bury the Reta Cable for electricity on this well. And of course we are still waiting on East Central Electricity to hang a transformer and meter for this well also.

We will be building the pad for the tank battery and Adam’s tank & Lease should be delivering the oil tanks, sw tank, gunbarrel, and seperater in the next day or so.

Our goal is to have everything set, hooked up, plumbed in and ready to turn on by the end of the week on both the 13-2 and 13-1 well while only having to wait on East Central for the last step… bring us the juice.

We are hustling as quick as we can, understanding sometimes we are held up by minor delivery issues. 

We are trying to beat the rains which are forecast to return at the end of the week. Even if we get a bit wet it will not be an issue as we have all of the heavy equipment already on location and set up.

Making progress…stay tuned.

This morning Arvine Pipe and Supply pulled onto the Llama 13-1 location to deliver and set up a 114 pumpjack. The assembly was completed by mid afternoon and is now ready for flowlines & electricity.

More coming…stay tuned

Today SPS (Specialty Pumping Services) moved their equipment onto the Llama 13-1 location, rigged up, and began pumping in 4000 gals of 20% HCL Acid with approx 650 bbls of sw flush. The acid job was done in four stages. 1000 gals of acid followed by approx 150 bbls of sw. Repeat the process four times, rig down, move off location.  Acid Frac complete.

The entire job went as could be expected. After completing the job the well pressure dropped to zero and actually went on vacuum which suggests that the acid was pumped deep out into the formation.

Tomorrow, D & M Well Service will run in the hole with the rods, tubing & down hole pump. Adam’s Tank will build the pad for the Pumpjack which will be delivered and set up Thursday morning.

A few pic’s below of today’s activities.  

Stay tuned…..more tomorrow.

As of today we were able to get the flowlines, valves, and fittings hooked up to the tank battery on the Llama 13-2 well. Adam’s well service also put on a coat of paint and has them looking good (see pic below). The only thing we are waiting on is East Central Electric to bring us power. 

Yesterday D & M Well service moved over to the Llama 13-1 well and rigged up their pulling unit. As you recall we have only perforated the Wilcox formation in the top three feet of the zone. This was a thin  zone with a less than perfect Cement Bond over the Wilcox zone.  When D & M rigged up they ran their swabbing tool into the hole and encountered fluid at 950′ which means their was approx. 2650′ of fluid in the wellbore. The anticipation rose as D & M  swabbed the hole dry. Unfortunately by the time we had all the fluid swabbed out of the hole we had 2650′ of Sw and at best a gallon or two of oil on top. Not what what we were looking for.  The purpose of swabbing the hole dry is to determine if there is any shows of oil or gas and at what ratio before we proceed. In this formation we had neither to speak of.

At this point we were left with some decisions to make.  1)  we had a thin zone, 2) we have a questionable cement bond, 3) we had no show of any measurable amount of oil or gas), 4) we are close to the SW contact line.  We could attempt to do a squeeze job by pumping more cement into the existing perforations (50-50 success rate at best on a much thicker zone) and re-perforating the interval and hope that the cement didn’t go up or down hole into more SW.  The decision was made that the probability of success was quite low, the decision was made to set a plug and come uphole to the Viola Formation.

We have a large interval in the Viola with a 30′ thick overall interval. We set up and perforated 18′ from 3620′-3638′.  We had approx 1500′ of fluid over the perforations when we set off the perforating gun. As it was getting late we shut the well in overnight. Yesterday morning we swabbed back the fluid.  After a couple of swab runs the gas came on very strong on each subsequent pull. By the time we were getting the hole swabbed dry we were getting excellent gas and a very good oil cut on each swab run. 

We had to shut the well in as our Orbit valve (pressure control) began to leak. By the time we had located a new one and could get it delivered and installed it was quite late. We have Blue Star Acid scheduled for Tuesday morning to do a 4-5000 gal acid job on the Viola formation.  We are very optimistic that we will make a commercial well from this interval.

I hope you all have a great weekend, next week will be interesting.

Today on the Llama 13-2 we spent the better part of the day laying flowlines from the tank battery across the pasture and onto the 13-2 location to the pumpjack, approx. 740′. We were also able to lay the SW line from the SW Pump to the SW Disposal well, approx. 1500′.

As of today the only thing we are waiting on to be able to turn the Llama 13-2 on is for East Central Electric to get power to us. 

Tomorrow we will be putting the finishing touches on the Llama 13-2 and then be moving over to the 13-1 to continue the completion process on that well.

Stay tuned,

Oil drops as OPEC agrees on massive oil supply cut to offset virus impact; awaits Russia’s approval The 14-member group, led by Saudi Arabia, decided on Thursday to cut production by 1.5 million barrels per day (bpd) through the second quarter of the year. OPEC added the group would review this policy at its next meeting on June 9. The proposed cuts, which were at the top end of analyst expectations, are believed to be conditional on approval from Russia.

The democrats are only focused on topics that get votes and regretfully the Anti Oil Agenda is at the top of the list. The democrats try to out do each other on just how anti oil they are to the point of saying they plan on giving CEO’s of large oil companies jail time!

All they are going to do is create a supply problem and cause oil prices to skyrocket like they did in 2008. Do they not realize there is no green tech capable of replacing the yearly demand of 36,500,000,000‬ Billion barrels of oil!

Oil Prices have taken a major beating due to Corona Virus, Shale Oil Companies going bankrupt, and Democratic debates attacking fossil fuels.

The truth is oil is not going away as demand for oil is growing! What happens when shale oil output drops, oil investments stop and oil demand continues to grow???

Simple Math Says We Are On Route For $100 dollar oil! How are we going to replace the 100 million barrels of oil we consume every day??? GREEN! That’s laughable! Quite simply we don’t have enough money to implement green tech nor is it even possible. The democrats seem to believe we have the answer for replacing fossil fuels… Kind of like your answer to health care! HA!

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Oil Prices are being setup for $100s again.

Oil Prices easily topped $100+ for 6 years in 2008-2014. After shale oil hit the seen oil prices averaged $40’s from 2015-2016 , $50’s 2017 , $60’s 2018 and $50’s 2019-2020. I’m going give you the why for $100 dollar oil.

Shale Oil

What is Shale Oil?

Shale oil is an unconventional oil produced from oil shale rock fragments. Shale Oil is very expensive to produce due to the formation have low permeability. In other words it’s to tight. It’s kind of comparing a kitchen sink sponge to a piece of chalk. The sponge has high permeability and chalk has low perm. If you sat a sponge and chalk into a bowl of oil for 100 years which would be the easiest to squeeze the oil out?

Why is Shale not profitable?

Shale Oil formations are so tight you can’t extract oil without a massive frac. Fracking is a slang term for hydraulic fracturing, which is the process of creating fractures in rocks and rock formations by injecting specialized fluid into cracks to force them to open further. Because of fracking, the shale oil revolution was born but at a high cost. Drilling and Fracking cost upwards of $20 million dollars making it impossible to profit @ these prices. This compared to conventional wells without a major frac @ 300k – 2 million. Most of the Shale was funded by bank financing causing a massive surge in new shale development. The fracking boom caused oil to flood the market thus causing oil prices to stay below $60 over the last 5 years. Everyone that invested in shale whether on the stock market or privately lost big!

Shale Today

Shale Oil Companies are seeing record of bankruptcies due to zero profits and not being able to payback banks and investors. 50 oil companies filed bankrupt the first 9 months of 2019 and 2020 is going to be much worse. Shale Oil Funding has come to a skreetching halt and has no chance of coming back even if oil hits $100+ again. The banks lost from two rounds of major funding. Fool me once shame on you, full me twice shame on me.

Shale oil has to be artificially stimulated using fracking tech in order to extract oil from the tight shale. As the oil flows through the tight rock it eventually goes back to the low permeability causing oil output to drop quickly.

There is also an increase in decline rates with each well being drilled as the massive formation get’s flooded with frac fluids. Each well frac causes 2 million gallons of fluid to be pumped in the formation causing the oil to be diluted. Shale wells produce water and oil. Each well being drilled has more water being produced causing each well to be less profitable.

Now What?

Without new shale oil development the 10 million increased output due to shale will drop rapidly as shale has a fast decline. The majors are going off shore again with hopes to find new discoveries. Without Shale you are going to see a fast drop off in oil production and with the divestment in oil due to all the banks closing the doors to oil you are going to see a rapid increase in oil prices. Currently we use 100MM BOPD growing an additional 1MM BOPD each year. That number continues to grow regardless of all the new renewable tech invented. There has been a major attack on fossil fuels due to the agenda of the democrats being anti oil and pro green. College students across the nation are having anti oil rallies and calling their college to divest from fossil fuels. The younger generation is not investing in oil and is more interested in green tech. With a growing demand for oil, green tech only able to help with a fraction of energy needs, and the divestment of oil you will see major supply problem thus oil prices will go up to the high $100’s again.

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