For sale proven heavy oil reserves (mineral rights 100%) located on 4,926.5 acres all minerals rights (priced at $28,500,000).of vertical depth down to 3500 feet as set out in deed recorded in Volume 180 Page 66, Deed Records of Maverick County mineral rights located in, Texas. Of the 4,926.5 acres, 1,713.5 acres of land are available for purchase for $5,200,000. This property is near the Eagle Ford Shale located in South Texas, the Eagle Ford is still an emerging shale oil producer. The intervals, in the San Miguel, that are of interest and that do contain the heavy oil are generally 980 feet to 1,100 feet. The average thickness of the production intervals is over 70 feet with some being over 120 feet thick.

Previously there were nine test wells drilled in the 1960’s on the property. All of the test showed the presence of heavy oil and logs for these test wells are available for review. Additionally, two production wells were drilled in 2014, they are located a few hundred yards from this property. We have available a well log record for one of the wells, from a property very near (a few hundred yards), the log shows the presence of heavy oil. The logs are available and will be shared upon an execution of an NDA. Additional information supporting the presence of oil reserves is documented in a geologist report. Also, the area south of this property has had an ongoing development and production of this same heavy oil for many years with significant recoveries in excess of 30% and as high as 50%. Well logs provide the bed thickness to be in excess of 70’. Additional drilling records of the area are available through the “Texas Railroad Commission Permit Inquiry” site. Details will be made available upon execution of an NDA.

Currently, there are wells near offset being drilled and developed using the cluster of 5 procedure. Calculated recoverable reserves are 98,600,000 Bbls of oil at 30% recovery. The calculated value is now placed at $4,390,000,000 using a net $45.00 per Bbls of oil.

Discretionary Earnings (EBIDTA) shown are projections. Pre-revenue opportunity, the financials shown on this listing are based a geologist report with oil recovery projections.
Detailed Information

Location: San Miguel, TX
Facilities: These proven heavy oil reserves are located on 4,926.5 acres,
Financing: Up to 40% Seller Financing.

This opportunity is pre-revenue. The Revenue and Cashflow stated in this listing are projections.