Thursday, March 19th, 2015 and is filed under Oil and Gas Current Events, Permian Basin Oil News, Texas Oil and Gas Investing
(Dallas, Texas) –– Aresco LP, a privately held Dallas-based exploration and production company, announced today that drilling has commenced on the Tannehill #1, a developmental oil well testing the Stockwether limestone and Tannehill sandstone formations.
The Tannehill #1 is the first of ten estimated well locations on a 1,400-acre Prospect situated in the Midland Basin section of the Permian Basin in West Texas. The Prospect extends an oil production trend discovered by the geologist of Aresco’s operating partner. The trend has produced almost 12 million barrels of oil and .75 billion cubic feet of natural gas to date.
“Drilling the Tannehill #1 marks the starting point of a multi-well, multi-year prospect development plan,” said Brandon Laxton, President and CEO of Aresco LP. “We are eager to add the well’s drilling and completion results to our already extensive geologic data set and our growing number of Permian assets.
“We’ve been asked our opinion about current prices from many outside the industry and how it will affect our goals for 2016. Oil prices may be down as compared to what we’ve seen over the past couple of years but drilling is still alive and well in Texas. Even at $40 oil, the Tannehill #1’s relatively shallow depth and lower drilling costs deliver a solid economic return profile,” said Mr. Laxton. “In addition, the Tannehill #1 targets multiple formations from one single wellbore, where commingled production and recompletions position us to earn from successful production for many years to come.”
The prospect’s overall development strategy has been established using several proven methodologies and extensive geological data, which include testing the soil for light hydrocarbon molecules with geochem analysis. Cumulative production estimates for prospect wells range from 200,000 barrels of oil to more than 300,000 barrels of oil per well.
About Aresco LP
Aresco LP is a privately held exploration and production company actively engaged in developmental drilling, mineral leasing, and production acquisitions in conventional and unconventional oil plays throughout Texas, Oklahoma and New Mexico. The company specializes in production-driven projects designed to provide income stability and strong growth potential. Aresco’s asset portfolio provides a strong balance of ownership positions in rapidly developing conventional formations and development projects in proven oilfields with decades of active drilling and production. To learn more, please visit www.arescotx.com.
This is not an offer to sell nor solicitation of an offer to buy any security. Such offer may only be made by a written prospectus in a jurisdiction wherein the offering is duly registered or exempt therefrom. This content is provided for informational purposes only. Nothing herein shall be construed as tax, legal, or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. There are no guarantees that any returns will be achieved. Potential investors should consult their attorney, accountant, and financial advisors before investing in oil and gas.
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