K15-FI

Project Overview

• Project Name: K15-FI Oil Project
• Location: Specify the geographical coordinates or the region where the project is located. For example, if it is similar to the scenario in the first source, it might be in an area like Lat: 38° 27' 49" Lon: -115° 34' 59".

Ownership and Licensing

• Operator: Identify the company or entity operating the project.
• Licenses and Permits: Detail the licenses and permits obtained, such as those from the Bureau of Land Management (BLM) and state authorities.

Geology and Exploration

• Geological Setting: Describe the stratigraphy and formations present in the area. This includes the types of rock units, their permeability, and any traps that could contain oil or gas.
• Exploration Phase: Outline the methods used for exploration, such as drilling core rigs, reverse circulation (RC) rigs, and the interpretation of well logs and cross-sections.

Drilling Operations

• Drilling Plan: Explain the drilling plan, including whether vertical or directional drilling was used, and the rationale behind the chosen method.
• Well Details: Provide specifics about each well, including the coordinates, depth, and any notable findings from the well logs.

Production

• Production Methods: Describe how the oil is produced, such as flow driven by natural pressure differences or the need for pumping.
• Production Volumes: State the annual production volumes, for example, 102,000 barrels of oil per year per well.

Economic and Financial Aspects

• Drilling Costs: Calculate the costs associated with drilling each well, including the daily drilling costs and the total cost per well. For example, if drilling costs were as high as $175,000 a day and each well took 30 days to complete, the total drilling cost per well would be $5,250,000.
• Revenue: Calculate the revenue generated from the production, using the current price of oil. For instance, at $66.99 per barrel, 102,000 barrels would generate $6,847,980 per year per well.
• Lease and Bond Costs: Include any annual lease fees and bond requirements, such as a $50,000 annual lease and a $10,000 bond.

Environmental and Regulatory Compliance

• Environmental Impact: Discuss any environmental considerations and mitigation measures in place, such as oil spill response plans.
• Regulatory Compliance: Outline the regulatory requirements and compliance measures, including reporting and disclosure obligations.

Market and Profitability

• Market Analysis: Analyze the market conditions and demand for oil.
• Profitability: Assess whether the project is profitable based on the production costs, revenue, and other expenses. Determine if there is enough money left over to drill additional wells and explore options for funding further drilling activities.

Here is a sample profile based on this structure:

K15-FI Oil Project Profile

Project Overview

• Project Name: K15-FI Oil Project
• Location: Lat: 38° 27' 49" Lon: -115° 34' 59"

Ownership and Licensing

• Operator: XYZ Oil and Gas Company
• Licenses and Permits: BLM lease, state permits, and a $10,000 bond for proper plugging and reclamation.

Geology and Exploration

• Geological Setting: The area features stratigraphy with permeable layers confined by impermeable layers, indicating potential oil traps.
• Exploration Phase: Drilling using core rigs and RC rigs to identify rock units and interpret well logs and cross-sections.

Drilling Operations

• Drilling Plan: Directional drilling to sample stratigraphy and maximize resource production.
• Well Details: Two wells drilled at Lat: 38° 27' 49" Lon: -115° 34' 59" and Lat: 38° 28' 37" Lon: -115° 33' 52", with the second well drilled deeper.

Production

• Production Methods: Flow driven by natural pressure differences.
• Production Volumes: 102,000 barrels of oil per year per well.

Economic and Financial Aspects

• Drilling Costs: $5,250,000 per well (assuming $175,000 per day for 30 days).
• Revenue: $6,847,980 per year per well at $66.99 per barrel.
• Lease and Bond Costs: $50,000 annual lease fee and a $10,000 bond.

Environmental and Regulatory Compliance

• Environmental Impact: Oil spill response plan in place to mitigate potential environmental impacts.
• Regulatory Compliance: Compliance with BLM and state regulations, including reporting and disclosure obligations.

Market and Profitability

• Market Analysis: Strong market demand for oil.
• Profitability: The project is profitable with a net revenue of $1,597,980 per year per well after drilling costs. There is enough money left over to drill additional wells, with options for further funding through investors or additional revenue streams.