San Andres

Energy Hunter Resources owns and operates approximately 9,500 net acres in the heart of the San Andres horizontal oil play of the Permian Basin located in Cochran County, Texas.  This Cochran County area is key to the San Andres horizontal oil play because of the significant original oil in place “OOIP” identified by the large Slaughter–Levelland Fields within  the Cochran County area. These fields and the producing oil saturated intervals allow for the re-development and enhanced recovery of the OOIP using horizontal drilling and segmented frack stimulation technology.


The acreage provided the Company with a substantial foothold within the core of the San Andres play. The existing production and recompletion opportunities contributes to a base of long life and low decline reserve value that will only continue grow with raising oil prices. Additionally, the property has approximately $5MM of infrastructure replacement value that allows the Company to efficiently execute on an expanded redevelopment plan.  Central facilities, oil and gas gathering with direct sales to 1st Purchasers, electrical power infrastructure, produced saltwater handling and disposal systems in place with enhanced reservoir pressure maintenance and reserve recovery opportunities.   


On this acreage, a total of 45 horizontal drilling locations capable of producing approximately 400,000 barrels of oil equivalent per well have been identified based on 640 spacing between wells with an average lateral length of 6000’. Management estimates drilling and completion costs at approximately $2.4 million per well. Analysts estimate breakeven costs at approximately $20 per barrel of oil and at $50 per barrel of oil, the internal rates of return are estimated at +100 percent.


In addition, on December 4, 2017, Energy Hunter Resources obtained the exclusive right to purchase an additional 9,600 gross acres located in Cochran County, Texas, an adjacent property to the west of Energy Hunter’s current location.   Pending completion of this potential acquisition the Company will have just under 20,000 gross acres located in the San Andres oil play of the Permian Basin. 

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