Hunt Global Resources is a partner in Reserve Oil Technologies, formed in early 2009 to take advantage of a business opportunity to acquire a potentially lucrative oil lease at an attractive price. The company now currently owns the lease on 88 wells (each fifteen years old) and 70 Production Un-Developed (“PUD”) sites for new drilling, located in the Bateman Field in Caldwell and Bastrop Counties, between Houston and San Antonio. This field is 1,212 contiguous acres and is has a shallow field depth of 2,400 to 2,600 feet. Under standard calculations, the total probable barrels of oil is between 1,500,000 and 2,000,000.
In acquiring the lease of the Bateman field, the previous lease holder had been in the testing stage of enhanced oil recovery for eighteen months. Enhanced Oil Recovery –EOR - is a generic term for techniques which increase the amount of oil that can be extracted from an oil field once the original or primary drilling efforts have stopped due to lack of production. Using EOR, it is estimated that up to 65% or more of the formation's original oil can be extracted. This is compared with 20-40% typically extracted from the primary recovery process.* (*DOE)
During the past four months, the company has been involved with the general overhaul of the property and 56 wells, including replacing pumps, motors, well casings, and pressure steaming the wells to remove sand, silica and other deposits in order to restore production. The plan was to continue to re-work these wells to rejuvenate production and use the profits from the enhanced oil recovery methods to begin the drilling of new wells.
In moving forward with the business, the company currently is exploring three offers that involve either selling the oil lease and/or enhancing revenues through a joint venture with an experienced oil field operator. The facts that the company purchased the lease at a very low price, that the initial work-over efforts have produced results, and that the Austin Chalk area is considered an attractive oil investment, combine to make a projected profitable future for this project.