Risk is substantially mitigated; all well data and production data is available in the state of Texas. This allows us to complete a reactivation analysis prior to acquiring a lease.
We buy Leases that are producing and where we can enhance the production at a fraction of the cost of fully developed fields providing excellent return on our Investment.
We also employ new technology that limits environmental effects.
To further mitigate risk, we use a revolutionary pumping system that allows us to forecast a fixed operational cost per well.
As the world continues to use more crude oil and world oil reservoirs are depleted, new ways of extracting oil and gas must be developed to get every drop possible from existing sources. In the old days, a vertical well could only extract part of the oil in a reservoir due to the heavy nature of hydrocarbon molecules and their ability to cling to whatever surrounds them, such as rock particles. This left as much as eighty percent or more of the oil still in the ground. Oil fields were abandoned, towns died off and workers moved elsewhere, all with as much as eighty percent of the oil still underground, yet untouchable. Now with enhanced tertiary recovery methods another twenty percent or more can be extracted, or up to sixty percent of the oil is a reservoir, effectively doubling or tripling the amount of oil produced from the field. Examples of large enhanced oil recovery projects are in the Weyburn Oil Field in southern Saskatchewan, owned by Encana, where over 18 million tons of CO2 have been pumped underground to extract oil.
According to the Department of Energy (DOE) it is estimated that full use of CO2 enhanced oil recovery in United States could generate an additional 240 billion barrels of oil. That's like finding a whole new major oilfield right inside the United States.
Horizontal drilling has increased the amount of oil that can be extracted but it is not considered enhanced or tertiary recovery. However, horizontal drilling, as described here How Oil and Gas Wells Are Drilled Horizontally, is often used in conjunction with EOR or enhanced oil recovery. Horizontal wells are used as both injections and collection wells.