Redhawk Resources announces an acquisition in the Permian Basin

Redhawk has announced it has acquired 3800 prime acres in one of the most productive oil fields in North America, the Permian Basin, for US$3 500 000. This acreage holds 70 wellbores drilled originally by Gulf Oil Corporation in the late 1980s and early 1990s to approximately 5000 ft. They have produced about 2 500 000 bbls of oil to date representing only 4% of the oil in place.

Jack Nichols of Redhawk Investment Group commented: "It's all about location, location, location.”

Work is already in progress revamping this field. The first workover was on an old Gulf well still producing 4 bpd of oil. Redhawk's operating partner, StableRock Energy, removed the pumping unit and pulled the tubing and rods. The well was cleaned up and StableRock shot 258 perforations in a 200 ft zone that previously had 12 perforations. The well was put back together and cranked up, and started producing 45 bpd of oil at a cost of US$88 000.

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13012016/redhawk-resources-acquires-permian-basin-acres-2138/