Independence Energy, which is rapidly emerging as leading US energy company, having assembled a sizeable portfolio of proven oil and natural gas assets, reported completion of upgrades and ancillary electrical work at the company's Quinlan Lease property in Oklahoma today.
The Quinlan property consists of three productive wells and a fourth well used for field disposal, all located on 120 acres in Pottawatomie County (company holds a 10% interest in the three productive Quinlan Lease wells). The origins of the field stretch back to discovery in 1937 and as a whole, the field has produced over 5.8M barrels to date, derived from 19 wells targeting primary production in the 1st Wilcox Sand/Hunton Limestone, with secondary production in the Simpson Dolomite/Viola Limestone.
Part of the upgrading consisted of a newly installed transformer (and the associated electrical hookups to the local utility), able to increase overall production and water handling capacity. These upgrades will support implementation of a much larger submersible pump for the Quinlan #3 well (originally tested in the Hunton Limestone with lukewarm production results), among other things. The submersible pump will facilitate perforation into the Viola Limestone, which should hopefully bring production from the #3 up to around the level of the #2 (13-20 bpd).
President and CEO of IDNG, Gregory Rotelli, emphasized the improved water handling/storage capacity provided by the field disposal well, Quinlan #4, which was completed in the 1st Wilcox Sandstone and serves as an excellent operational backstop, explaining how this improved capacity would significantly increase revenues from Quinlan #3 oil production.
Independence Energy is buzzing, as the May 7 target date for the submersible pump to be online approaches, at which point the Quinlan project will be essentially in full production. All on par with the company's larger strategy to secure additional domestic property interests and advance existing projects (which includes the highly prospective Coleman County, Texas-based, MontCrest Energy Drilling Program #3, for which IDNG has a turnkey 5% Working Interest) via further development, as well as offset drilling/fracking. The fracking potential of Quinlan is abundant, with the Viola Limestone and the Simpson Dolomite zones being natural targets, targets without any such recorded treatments.
IDNG is hard at work, continuing to build an industry-leading team of technical professionals, while simultaneously engineering the funding alliance architecture required to support growth via partnering and acquisitions. Driving shareholder EPS through the concerted cultivation of long-term portfolio value and more immediate production results, IDNG is eager to please investors with a robust operational envelope that includes potential sale, from time to time, of developed properties at a fair market value.
Oil prices fell yesterday, driven by a lackluster U.S. jobs report (only adding 115k jobs falls well short of expectations) re-igniting concerns over a global slowdown in overall economic activity, as well as OPEC's intentions to raise output capacity, sending oil down to around $100 for the first time since Feb. Meanwhile Japanese and Russian officials are in talks to explore building a natural gas pipeline to Japan in order to offset energy demand, which is set to spike as Japan shuts down their last remaining nuclear reactor this weekend, making it the first time in 40 years Japan has gone without nuclear capacity. The price point may be volatile, as Tuesday's jumps mirror the falling price later in the week, but the global demand for oil isn't going anywhere and domestic exploration/production companies like IDNG have a strong future as the U.S. itself re-emerges on the frontlines of global oil and natural gas production.
For more information on the latest developments at the Quinlan property, or to keep up with the latest developments at Independence Energy Corp., please visit the company's website at: www.IndependenceEnergyCorp.com
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