I spent 4 hours Saturday afternoon at the Richie leases. I need about 4 more hours before I can you a full report. By the way it snowed 3 inches up there the night before. Crazy for Texas.
I’m not sure we can do much to improve the production on the Richie #1 well. It is 16 years old. It looks like it is going to make about one barrel a day of oil and some gas. The gas compressor won’t run so we will have to repair it so we can get into the Gas purchaser’s high pressure transmission line. The well was fracked with 45,000# of sand a long time ago so it might be worth fracking the well again although I am pretty sure we are dealing with a depleted zone.
As I told you the other day the waterflood project is going to be a big undertaking. That project has 6 producing wells, 4 injection wells and one water supply well. I got one of the producing wells to run(#17). It was making a little bit of fluid and had about a 5% oil cut at the well head. None of the other producers would run. They all have electrical issues and I need a lot more studying to see what we might be facing. I will probably need to get my electrical boys(J & J Electric) to come out and look at everything and give some kind of ball park estimate on what it will take to get everything running. There is also several of the flow lines that are broken and will need to be repaired. The breaks are generally around the well head area. I am told the 1700’ formation, which is where all these wells produce from, have a big problem with paraffin so we may have a big problem with the flow line being plugged up. After we get everything running we may have to try to pump some paraffin solvent in all the flow lines to try to unclog them. That might be why there are so many flow line breaks around the well head area.
The 4 injection well system is really in bad shape. Only one of them is functional and I’m not sure yet which one it is as there is no markings on anything around the injection pump central area. The big injection pump motor will run but I am not sure the pump is pumping anything but at least we know it doesn’t have an electrical problem at this time. As I said I need 4 or 5 more hours to figure everything out.
I want to get you a good cost estimate after I check everything out but I can certainly see 20-25k just to get everything up and running. Then we have to hope the producers will make us some oil.