See attached video – Ritchie #10. We got the electric cable repaired and got the last 2 wells going(#9,#10). #10 is pumping fine but #9 would not pump, so we are going to have to pull #9 and #17 and see what is wrong with the down hole pumps. With #7, #10, and #15 going we are making one bbl/day oil and 5 bbls/day water. I was hoping we would make some gas but so far we are not making any. We will start working on the injection wells next week.
Happy Easter All
WE made some good progress last week. We got 90% of our plumbing completed around the tank battery area. The electricians found the broken electric cable 4’ deep. We had to dig a big hole to find it. Five foot of cable will have to be replaced. They had to order a repair kit and it will be here next week so we hope to have the wiring fixed and the last two wells up and pumping next week. We have looked at the 4 injection wells and know what parts we need but we have not done any work on that part of the system yet. I want to get all the producing wells up and pumping before we tackle the injection well part of the system. Still have not been able to do the dozer work to fix the location from flooding but we are supposed to be dry next week so I am hopeful to get that finished. We will start the monthly JIBs effective April 1, 2020 so you will get the first paperwork for your people mid-June.
Not much to report as we have been blessed aging with a bunch of rain. The location is standing in water as our dozer guy has not been able to dirt work behind the tank battery area to fix the flooding problem. We did get the piping fixed around well #7 and got it pumping. We now have well #15 and well #7 pumping. Between these two wells we are making about ½ bbl/day of oil and about 5 bbls of water. We had the #17 well pumping but it quit making any fluid so we must have a down hole problem. The electrical boys and the roustabout crew are ready to come if we can ever dry out a little. The Ritchie #1 well is still making about 1/3 bbl/day of oil and about 3 bbls of water. It is holding in there with about 20 mcf/day gas.
I will send you a weekly update every Saturday and let you know how we are coming along so you can keep your investors up to speed.
We didn’t get much work done this week mostly just lining everybody out. We had the electrical boys out and showed them all the issues. They were able to repair the electrical panel for the #7 well so it is ready to run when we get the well head piping repaired. They are coming back next week with some special equipment to find the main electric line problem. This line feeds the power to the #9 and #10 wells. Hopefully that doesn’t turn into a major ordeal.
We had the fiberglass repair guys out. There are three places that the fiberglass piping is broken and needs to be fixed including the well head piping around the #7 well head. They plan on coming Monday or Tuesday to make the repairs.
I lined out the roustabout crew yesterday on all the work we have to do around the tank battery area. They will be back next Wednesday to start all their work. I estimate it will take them about a week to get everything done.
Also, had the dozer guy out. He will fix the area behind the tank battery so it won’t flood the whole area every times it rains.
Lastly, I am a little concerned about what the Coronavirus might do to us. They are getting more and more adamant about people not leaving their houses unless it is an emergency.
Gary has received the first amount of money we have sent to him, he expects to start next week, the area has received some rain, which we know too well, but mother nature we do not control. So the plan is to start the work GET the sources into production and do everything else out in the fields. $ 24 a barrel, white this level continues, one option would be to temporarily close the sources and wait for better prices, no need to sell our oil for no money. more about this when the sources are in production and we know how the market is at this time, things are changing rapidly in these times.
Sincerely. TEX OIL COMPANY
We need to help G&F Oil inc. by completing the JOAs (Joint Operating Agreements) that all investors must approve and sign, Which we have said yes to, we expect everyone is done at the end of this week, when this is ready everyone will be advised via email, here in it will be clear what needs to be done on the part of the investor.
Sincerely. TEX OIL COMPANY
Feb 13th - 2020
Jann has had the flu for 5 days so we don’t have the AFE write up, JOA’s or assignments ready to send to you. I did talk to the previous operator(John Rainwater). He said he met you in Graham when y’all visited. He had the old pay decks for the Ritchie #1 and Ritchie Waterflood. This is huge help for us as Wayne could not find any of the paperwork. It appears the NRI’s are in the 76-77 range. I am having this double-checked but I imagine this is going to be correct. I will try to get you the paperwork as soon as possible as I know you need that to get your investors to put up the money and I need the money before I start the reworks.
Feb 5th - 2020
To all investors
G&F Oil, expects to be able to send us the necessary documents next week. i.e. new operator agreement, renovation budget etc.
As soon as we have these ready, we will send an email to everyone with a guide on what to do on your part.
Sincerely. TEX OIL COMPANY