Carr/Terrell Five Well Drilling Package

9/15/09
Received drilling permits for Carr A1 and A2.

CARR A 1

10/9/09 Moved equipment to Carr A 1 site for site preparation.

10/10/09 Inclement weather prevented activity on the hill.

10/15/09 Moved rest of drilling equipment to site.  Dug mud pits.  Started drilling to 6 foot depth.

10/16/09 Drilled to 66 feet.  Set and cemented conductor pipe.

10/17/09 Drilled to 239 feet.  Hit a water table at around 180 feet.

10/18/09 Worked a half day and drilled to 360 feet.

10/19-20/09 Drilling rig repairs, and road maintenance.

10/21/09 Drilled to 820 feet.  No indication of hydrocarbons to the present depth.

10/22/09  Drilled to 952 feet.  Went through the Fry Sands payzone without indication of any hydrocarbons.  We expect to drill through two additional payzones.

10/23/09 Switched from air drilling to mud drilling, which slowed the process down considerably.  Went to a depth of 982 feet before we had to stop the process to pick up additional chemicals to mix with the mud.  Also brought in 11 trailer loads of road base to fix the road before the next rains.

10/24/09 

Drilled to 1068 feet.  About 30 feet of very strong fluorescent in the cuttings starting at 993 feet which could indicate the presence of hydrocarbons. We will be taking the cuttings to our geologist for his input and analysis. 

10/25-26/09

Drilling has been very slow because of hard rock.  Depth is now at 1191 feet.  Some trace of fluorescence, but not like the Caddo formation. 

10/27/09

Continued drilling through very hard rock, averaging a foot every 10-12 minutes.  Drilled to a depth of 1245 feet.

10/28/09

Finished drilling to 1272 feet and determined there were no additional zones worth pursuing.  Logged the well this afternoon, and after looking at the electronic logs and comparing them to our samples and drilling log it was determined to set the longstring casing and shoot the well at around 993-1000 feet.  Scheduled to set the longstring in the morning (weather permitting) and cement around 11 am.

10/30/09

Set and cemented 1100 feet of longstring.  Will give it the weekend to set up before shooting the formation early next week.

11/2/09

Shot the formation today at depths of 988-990, and 994-1000 feet.  Put 1000 gallons of acid into the formation under high pressure.  Swabbed the well until darkness took over.  We will be swabbing the well over the next week to determine if the well will be a producer, or whether we will turn it into an injection well.

11/3/09

Continued swabbing the Carr A1 well, with no hydrocarbon show yet.  We will swab for several more days as more of the acid and water is brought out. 

11/6/09

Still swabbing the well, and may continue doing so for up to 7 more days.

11/13/09

Nothing further has shown out of the Carr A1 well.  It has been determined that this is a nonproductive well.

CARR A2

11/3/09

Started the location on Carr A2 well, just East of A1 well about 300 yards.  We hope to start drilling soon, and will likely air drill all the way through to Total Depth.

We met with the electric company representative on site and received initial feedback on placing the utility poles.  We will wait till we are through drilling the Carr A2 well before determining where the poles should be placed.

11/4/09

Completed site preparation today.  Equipment will be moved onto the site tomorrow getting ready to drill.

11/5/09

Today we began staging all the equipment at the A2 drill site.  We will conclude that aspect of the drilling preparation tomorrow, and could begin setting the conductor pipe in the afternoon.  Also we had a dozer doing a little more road work for us.

11/6/09
Completed staging drilling equipment.  Set and cemented the conductor pipe.

11/7/09

Started air drilling in earnest, and got down to 672 feet on A2 well.  If all goes according to plan we will drill through the fry sands (potential payzone) tomorrow.

11/8/09

Completed drilling to 1046 feet.  There was a little gas show, and some odor and fluorescent, but not enough to justify logging the formation.We will let this well sit for a couple of weeks.

11/13/09

The well is now showing strong indication of being a productive gas well.  Placed a valve and gauge on the pipe, and it pressured very quickly, and spewed out gas when opened.  We ordered longstring casing, and will have the well logged, longstring set and cemented.

11/16/09
The Carr A2 well is still highly pressured and producing gas.  Moved the drilling equipment back up the hill to the Carr A2 well, and the plan is to dig the pits, prepare the drilling mud and reenter the well, going from current Total Depth several hundred more feet to the Ellenberger.  The purpose is to see if we might have even more production at that lower level. 

Regardless of what else is found, the plan is to log the well, and then set the longstring, perforate, and then acidize.  Right now we know we have a gas well, but it may also produce oil, and that's what we're trying to determine.  Depending on what else is found will dictate whether we just run poly pipe to the Kohler gas line or whether we also have to set tank batteries.

11/17/09

Finished moving the rest of the equipment back up to the number 2 well, dug the mud pits, and started drilling early afternoon.  The drilling crew is going fairly slowly so as not to miss anything in reading the formations.

By late afternoon they went to a total of 1070 feet, and the fluorescent was anywhere from 30-100%, in addition to both gas and oil odor.  John plans to drill another 300 feet tomorrow into the Ellenburger formation.

11/18/09

Drilled to a total of 1145 feet in the number 2 well.  Drilling is going very slow, and expectations now are that they will not finish drilling until Friday.  Fluorescent diminished as they went deeper, and they are not out of the Marble Falls formation yet.  The Ellenburger is still our target for the next couple of days.

11/19/09

Drilled down to 1230 feet today.  Drilling continues to go slowly, making only about a foot every 5-6 minutes.  Hopefully soon they will be out of this formation and able to make better progress.

11/20/09

Reached a total of 1360 feet.  Expectations are that we are just on top of the Ellenburger.  If the weather cooperates and we're able to get up on the hill tomorrow, we should be able to reach TD through the formation by early afternoon.

11/21/09

Finished up Total Depth on the Carr#2 well at 1420 feet.  There was very strong show (oil odor and 100% fluorescent) in the top 15 feet of the Ellenburger formation at around 1390 feet.  Logged the well, and the geologist will evaluate the log, and will make a determination on next steps by Monday morning.

12/10/09

It has been determined that the risk in bringing this well online versus the potential gas sales is not acceptable.  Therefore this well is nonproductive.

CARR A3

11/9/09

Prepared the new drill site, and moved drilling equipment in the afternoon.  The plan is to set and cement the conductor pipe tomorrow.

11/10/09

Today we set and cemented the conductor pipe.  Drilling will commence in the morning.

11/11/09

Today reached a depth of 290 feet.  It was very interesting that at five feet down they started drilling through solid rock that went down a total of 90 feet.  That's very unusual, but once they got through they started seeing normal formations.

Repaired and moved additional equipment onto the site to mitigate the potential of dealing with water.  This equipment will help get through the water pocket without slowing down. 

11/12/09

Today the team drilled down to 941 feet on the A3 well, and there was a strong gas odor at that depth.  The gas odor is a potentially good sign, and we should have a pretty clear idea by tomorrow afternoon whether the Marble Falls will be productive for us.

11/13/09

Finished drilling the Carr A3 well to a total depth of 1,130 feet.  Other than the strong odor mentioned in the previous post there was no other indication of hydrocarbons.  This well has been determined to be nonproductive.

CARR A4

11/13/09

The Carr A4 well is a possible future site, but at this time will not be pursued. 

TERRELL #1

12/19/09

The lease was signed on the Terrell property.  Began moving equipment onto the site.

12/21/09

Set and cemented the intermediate surface casing. 

12/22/09

Mud drilled to a depth of 203 feet.

12/23/09

Continued mud drilling to a depth of 513 feet.

12/24/09

The team drilled 1/2 day because of Christmas Eve, and got to a depth of 680 feet.

12/26/09

Drilled 1/2 day and got to a depth of 780 feet.  There are fossils in the cuttings which is a good indication of potential hydrocarbons.

12/27/09

Drilled to a depth of 1057 feet.

12/28/09

Drilled to a depth of 1235 feet, with some fluouresce.

12/29/09

Despite snow on the ground and frosty conditions, drilled to a depth of 1424 feet, and stopped just before going through the payzone.  The last 20 feet or so showed 15-20% fluoresce.  Additional drilling mud is being delivered so that heavier gravity mud is available to prevent a blowout going through the payzone.

12/30/09

We have hit some very strong show during today's drilling. From 1574-1594 feet there was 30% fluoresce. At 1594 feet it turned to 100% fluoresce with very strong oil odor. Also the gas sniffer went off several times. At 1604 feet the fluoresce diminished to about 60%. The drilling for the day ended at 1606 feet. The formation we are in is the Marble Falls which has been productive in this area.

12/31/09

The team drilled to 1674 feet today. Toward the end of the day a section of pipe broke off in the hole, and a fishing tool is being used to retrieve the pipe.

Drilling is slow going a foot every 10 minutes because of the hardness of the rock.  The fluoresce ranges between 60-100% with a slight oil odor.

The marble falls came in about 95 feet higher than it did in wells to the north and south.  This could be a good sign that we may have a trap for oil and gas. We won't know until we break through the cap.

1/2/10

Today the team got back to drilling after fishing out broken drill pipe yesterday, and they reached a depth of 1734 feet.  They are now in the Barnett Shale.  Starting at 1705 feet the fluoresce went to 100% with strong odor, and indications of oil, not just gas. 

1/3/10

Drilled to a depth of 1816 feet.  There was show and odor all the way to end of drilling today.  The logging company has been called to log the well at 2 pm tomorrow.

1/4/10

Drilled to TD of 1845 feet.  Logged the well, and showed 21-23% porosity at the top of the marble falls.  We will proceed with production casing.

1/5/10

Set and cemented the production casing.  We will tentatively shoot and acidize the well on Friday.

1/12/10

Today we perforated the well between 1599 and 1605 feet.  Immediately we injected 1500 gallons of acid mud and water at nearly 1000 pounds.  Began swabbing the well in the early afternoon, and the initial show is oil.  The last swab was at 5:30 PM, and we are letting the well sit overnight, and will swab again around 9 am tomorrow. 

The amount of pressure and water pushed the oil back into the formation, and it takes awhile for the oil to flow back to the openings. It's possible we will see the oil flowing in the morning, or possibly one or two days later.  Assuming that happens, we will begin to lay the lines to the new tank batteries which we will set up in the next few days.  Therefore we believe we should be seeing production by early next week.

Our goal is to start the last well sometime next week.  Again, assuming we see production out of the current well, we will offset the next well with a high prospect of having another productive well.

1/13/10

Today was spent swabbing the well.  There was a small show of oil, but most of the fluid coming out was acid water from the acidizing procedure.  Approximately 60 of the 74 barrels have been swabbed out.  We put the well on a vacuum pump, and are letting it sit overnight and will check it again in the morning. 

We staked out the last site for the five well package.  Tomorrow we will start applying for a drilling permit. 

1/15/10
This afternoon we did a bond log on the formation.  A bond log registers how effective the cement adhered to the side of the casing.  We discovered that ten feet of the formation from 1599-1609 did not have any cement adhering to the casing.  What this means is that much of the cement that was supposed to go behind the casing actually ended up in the formation where it was perforated.  This occured because the high porosity (a very good thing in oil wells) actually allowed the cement to migrate into our formation. 

The lab samples that were evaluated showed there is no problem with the rock in the formation, and that it should give up oil very easily.  We are starting to pull oil out of the well, but the accumulated cement in the formation is holding back the oil.  This well will not come in commercially until something is done to dissolve the extra cement.  On Monday we are meeting with a company rep to go over the recommendations on the treatment.  We know that the treatment involves another acid job - much stronger and in greater amounts than the first treatment.  The recommendations will help us determine the exact treatment plan.  Potentially we will treat the well on Tuesday.

1/18/10

Yesterday we acidized the well with 2500 gallons of acid and water.  Six swabs gave up quite bit of drilling fluid out.  Today we swabbed three times, and are seeing a lot of drilling mud along with traces of oil.

1/19/10

We are starting to see more oil coming out of the wellbore, and it looks like this will be a commercially productive well.

1/20/10

Swabbed morning and evening; oil flow increasing along with some cuttings and salt water.  In few more days we will set a pump jack and install the tank batteries.

2/17/10

After significant weather delays we have started installing tubing and setting the pump jack.

2/18/10

Completed installation of tubing and pump jack.

TERRELL #3

1/19/10

Equipment movement was completed to the #3 site, and the conductor pipe was set and cemented.

1/20/10

Airdrilled past 300 feet, and then switched equipment to prepare for mud drilling. 

1/21/10

Terrell #3 was mud drilled to 490 feet.

1/22/10

Today we drilled down to 739 feet on Terrell #3.  The weather is cooperating, and if we continue without problems we should be done drilling by mid-week.

1/23/10

Completed the day's drilling at 958 feet.

1/24/10

Drilled to a depth of 1148 feet.

1/25/10

Drilled to a depth of 1300 feet.  The formations are looking similar to those of Terrell #1 well.

1/26/10

Drilled down to 1458 feet.

1/27/10

Drilled to 1638 feet.  Going through the marble falls formation, with some flouresce.

2/2/10

Completed drilling to 1748 feet.  Logged the well, and decided to complete the well.

2/16/10

Set and cemented the longstring casing.