TULSA A focus on proven but undeveloped conventional oil and natural gas fields has prompted a company to plan for drilling 25 new wells in central Oklahoma.
According to a news release, the company, YEP Petroleum Group Inc., believes that utilizing “newer day” technologies in proven, mature fields will yield substantial profits with limited risks.
The company said it will target drilling initially in central Oklahoma in the stack pay zone play. YEP Manager Nicholas Philip announced the company’s commitment to develop wells in the area in and surrounding Creek County.
An agreement with American Oil Capital (AOC) and N Drilling Company (NDC) has been reached to begin with 25 wells. Potentially, more than 100 could be developed through 2023, the company said.
Reserves are expected to exceed 5 million barrels of oil or equivalent in the conventional and unconventional reservoirs combined, YEP said. The primary targets will be the Wilcox, Misener, Bartlesville and Dutcher Sands, with several other secondary sands. The Woodford Shale and Mississippian Lime will be tested for reserve analysis and eventual unconventional development.
According to the release, YEP has projected 4.6% monthly return on investment, based on an $80 per barrel price for oil.
“The YEPP strategy is to develop the proven understood reservoirs with the application of some newer day techniques and understandings, which has resulted in maximum risk management,” the release stated. “New day completion and production techniques make it possible to extract more oil today than originally produced when the fields were discovered. The idea of building a strong daily production at a low cost of development, while booking decades' worth of reserves, is a very good position to be.” The company advised to visit www.yeppetroleumgroup.com online for more information, including about potential investment.