The Squaw Mountain Prospect is an oil prospect situated on a 54 acre lease in northern Jack County, TX. The project consists of the drilling and completion of 8 new wells to test and produce oil from the shallow Gunsite Sand. The sands range in depth from 350’ to 900’. While very shallow, the surrounding wells that produce from this sand from fields such as the Smooth Bore Field and the McDonald Field can produce 15 to 30 BOPD and cumulative recoveries range in totals from 3,000 to 15,000 bbls per well. One well in particular, drilled just across our western lease boundary had an initial flowing rate of 40 BOPD from a 300’ deep Gunsite Sand in 2006 and maintained this daily rate of production for the first 6 months of production and still produces today, some 12 years later!
This well has paid out gross investment over 8 times! While every well drilled in this prospect won’t be a home run like the aforementioned well, keep in mind, at such shallow depths and investing in an operator who owns their own drilling rig reduces investment costs so that only 1,500 bbls of oil is needed per well to pay back gross investment in any given well at today’s oil prices. Also, minimum spacing requirements to properly drain the estimated reserves in place for this particular zone is only 2 acres so we have many locations to drill on this lease property.