In the acquisition, Cavu and its new investors purchased a total of 220 acre lease in Garvin County, Oklahoma that has two producing wells and two that are in the final stages of completion. The purchase also included over six acres of land and home that will be converted into the 24-7 operational facility for its wholly-owned subsidiary FILO Quip Resources.
FILO is the operator and along with the planned rework program is increasing the storage capacity by 400%. The company has purchased seven new storage tanks, tubing and high volume submersible and disposal pumps to complete three additional wells.
The two producing wells were originally drilled in the 1950s to the Bromide formation at about 3,000ft. The wells were re-entered during the 1990s when companies in the area began testing deeper reservoirs. The wells were then deepened to the Oil Creek formation at about 3,800ft. The two wells are currently producing a combined 35 to 40 barrels of oil per day (bopd).
The operator FILO has already re-entered two of the wells on the lease and plans to re-enter five additional wells and rework them with the possibility of deepening them to the two Oil Creek formations between 3,800ft and about 4,000ft.
There is one other significant producing zone the McLish Creek formation that will also be tested. After analyzing the data of the two producers and other wells contiguous to the lease, Cavu anticipates each of the seven wells could possibly have average initial production rates of between 30bopd to 50bopd.
