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