Oil Gas Dividend

59 Well Update 3/28/2011 – Guy#6 Going on Pump

Steve — Sat, 02 Apr 2011 02:10:44 +0000

Guy #6

We began swabbing the well yesterday morning with about 6 barrels of fluid every 10 minutes with a 10% oil cut. That equates to about 1 barrel of oil per swab or every 10 minutes or the equivalent of 144 barrels of oil per day in addition to about 100 mcf of natural gas.

Yesterday afternoon we had about a 50% oil cut which is a swab rate of 432 barrels of oil per day. Normal production should settle down around 25% to 50% of that rate or the swab rate of 6 barrels of fluid or 3 barrels of oil every 10 minutes.

Below is the well free flowing oil and gas with flare. We are hooking up a sales meter so we can also sell the natural gas. All of the frac fluids have already flowed back. We have never had a well clean up the frac fluids in one day.

I will be in the field again today. We made tremendous progress on the final selection of parts in finishing building a coil tubing rig that will drill our multi horizontal laterals. We are getting close to our third field test.

The 5/8” coil tubing will be able to drill laterals in wells at 6,500’. The Gardner Denver pump will deliver 40 gpm at 20,000 lbs psi to dig the radials with. The ball cutter will cut a window in the 4 ½” well casing in about 2 hours. It will then take about 6 hours to radial jet 300 ft horizontal laterals from the well bore in a wagon wheel pattern.

We plan to drill a number of horizontals in the 52-well Andrews Field.

Charles Couch

59 Well Update 3/23/11 – Guy #6 In the proper oil channel

Steve — Sat, 02 Apr 2011 01:39:00 +0000

The Guy#6 should give the 59 well package a boost after we watched the classic frac pattern develop while the large pump trucks as shown below shoved 30,000 lbs of 20/40 sand, 16/30 sand and 20,160 gallons of proppant gel grac fluids into the Guy #6 Morris Sand.

Frank Tomblin, the frac supervisor with Pumpco called the completed frac a text book treatment. Pressure gradients indicated we got up to 600’ fractures out into our oil and gas bearing structure. Other engineers on location thought we obtained the perfect frac because our new oil well locating tools using magnetic imaging technology got us within twenty feet of being in the middle of the channel of oil. It stands to reason frac treatments will work best when they are deployed in the middle of the oil formation instead of the edge.

The monitor above left in the frac control center and the close up of the screen shown below reveals we begin hitting the formation with up to 5,600 lbs of pressure. The formation cracked or broke down at 1,810 lbs of pressure. The formation pushed back at us 1,750 lbs of natural gas pressure from the Morris formation which had been perforated or opened to the Guy #6 well bore 3,420’ to 3,428’. The gross production interval is 3,418 to 3,450’.

This was the first time we kept the formation open with two types of sand. We used PSP-20/40 Ottawa sand that was forced into the small formation cracks and PSP-16/30 Brady sand into the larger cracks to keep the formation open. This morning well started flowing back with 600 lbs of surface pressure and a large oil cut or the equivalent of 200 barrels liquid flow rate. We will have an oil flow or pumped rate determined once we flow back the frac fluids first. We have Robert Martin hooking up the flow lines and the production facilities so we can began well production or putting oil in the tanks.

Getting out into the productive formation is very good news. As we develop our radial horizontal drilling laterals, I hope to add about 24 laterals to the well after we get some of the initial production pressure off the well.

Charles Couch

59-WELL PROGRAM UPDATE March 18, 2011

Steve — Thu, 31 Mar 2011 00:53:49 +0000

Yesterday we reviewed a progress review on building the equipment that will drill the horizontal legs in our wells. It appears we will drill our first test horizontals in about a month. Our goal is to drill 4 three hundred foot laterals in 3 foot sections of each productive zone.

The new deflection tool will turn the necessary radials to drill up to 6,000’ of horizontal well bore in a 15 foot section interval or 20 three hundred foot laterals at various levels in the oil productive formation. We hope our budget will be in line to drill horizontals ultimately in all of our wells, old and new.

Our design engineer worked with Jim Gardes from Lafayette who helped drill our first horizontal well back in 1989.

Guy #6

We began completion work on the lower Morris oil and gas sand at 3,440’. This oil sand swab tested at 180 barrels of oil per day before being frac treated or having horizontal well bore legs installed. Below is an oil sample from the well.

14 magnetic imaging oil channel technologies

We have finally installed the last hardware and software updates of our gamma reading field unit. This new tool validates the presence of oil by giving us a low thorium and radium reading and a high potassium reading.

Red Windmill #1

Through the night we fought some hard rock while drilling the Red Windmill #1. About 4 AM I pulled the plug on the drilling bit and told the drilling crew to bring it out of the hole. That was a good call because the drilling bits three cutting cones were wore out from the hard rock. We have tested by the on site mud logger what appears to be two productive oil zones in the Gunsight and Hope Lime. The prize though is down deeper around 4,700’ or under the Black Shale as we originally mapped in Nolan County (Big Black Dog #1 – awaiting horizontal legs).

These producing formations under the shale in the Bakken, Barnett, Eagle Ford, Sprayberry or our 200 square mile mapped black Penn shale in West Texas always deliver a lot of natural gas along with the oil. It is important to drill near a nearby a natural gas sales line.

If our magnetic imaging 14 step protocol is somewhat accurate, we have made a significant deeper oil field find 3 miles east of Anson in the Red Windmill Field in the 3 million barrels of oil range.

Drilling Horizontal well bore legs.

With each significant find or good producing oil well we get significant flush oil production then the well would level off at a lower rate. Our goal was to drill horizontals so we could mechanically frac the formations. This would allow our initial production rates to start out even higher yet and the settle down production rate higher too.

Our magnetic imaging technologies began interfering with our long horizontal leg plans on some wells. The magnetic imaging revealed the streams or rivers of oil that flowed through the oil structure are different from natural gas and they are not stratigraphic in nature but tend to twist and turn. They are rivers of oil that meander through the structure. My biggest concern was to drill a large expensive horizontal well and not get it properly located in the oil structure to be drained. This has plagued operators in the Bakken, Eagle Ford, Barnett and Sprayberry shale plays where they seek to harvest oil trapped under the massive black shale. We have mapped our own 200 square mile Penn black shale.

We began building equipment on the 52 well shallow oil Andrews lease (in our 59 well program) some months back that would allow us to drill horizontal well bores from existing or established producing oil wells. These coil tubing units have been making significant breakthroughs with new GIS directional steering units.

I have spent time with the original patent owner, Dr. Jerry Buckman ( has 15 patents ) Dr. Buckman is a professor at Western Kentucky University so we don’t reinvent the wheel. Dr. Buckman also offers a service that helps the producers in Kentucky stimulate their wells (5 to 6% porosity vs 10 to 12% for ours)

www.buckmanenergyservices.com/index.html

Dr. William C. Maurer has been of great assistance to Buckman over the last decade and serves on the Buckman Jet Drilling BOD. He was a young engineer for EXXON in charge of jet drilling four vertical wells to 8,000 feet in the late 1960-70. He then went on his own to establish Maurer Engineering and Technology in Houston to spin out 18 different companies and developed many patented devices. He was honored with the first “Legends of Drilling” awarded by the International Society of Petroleum Engineers. Dr. Maurer is convinced that jet drilling has a very bright future and many significant improvements are to be mode over the next decade. We plan to help him work through these since Dr. Buckman will be helping us not reinvent the wheel on horizontal drilling discoveries made to date.

Our plan is to drill each well with conventional drilling rigs so we can have a proper straight developed well bore without mechanical problems. Then from there drill at least 4 to 24 laterals from 30’ to 1000’. Our in house assembled equipment will drill about 50’. Dr. Buckman says we usually increase production 200% with four 30’ laterals and 600% with four 300’ laterals.

Traditional well bore configuration pulling from 120 feet (4 -30’ laterals) equates to a total volume of pay zone of 271,296 cubic feet. Each lateral of 300 feet will pull from over 360,000 cubic feet. Thats 1,440,000 cubic feet on four laterals.

So in our recent development of the Left Field oil field, we drilled four wells that we calculated would normally drain 200,000 barrels of oil without the radials. With four 300’ radials we increase our drainage of oil 5.3 times or 1.061 million barrels. This increases initial production rates and eliminates the need for slow expensive water/oil floods to be implemented about 20 years in the life cycle of each producing field.

This technology will enhance existing producing wells as well as new ones as show in the illustration below by the US Energy Information Agency. I had hoped with 44 years of experience I would have unlocked all of the secrets of harvesting oil reservoirs. I guess that is the exciting part of life, in any field or profession we only become the best if we seek to continue to learn.

The coil tubing unit directional drillers like Dr. Maurer claim my conventional drilling rigs which I have struggled to build unit by unit will soon out of date and will be replaced by the new directional units I am now building.

You see guys like me still diving their old 1952 Chevy repainted and reconditioned pickup trying to hold on to some of their past moments of glory and achievements.

My best well paid for itself in 18 days and was a very costly directional drilled high tech well with Carrizo. I can only enjoy my past success momentarily. With the new technology protocol we can image where in the formation the oil is located and then extract it at a higher rate. My goal is to average 50% return as we did with large natural gas wells before the price of natural gas dropped. Actually I think we could probably do better, a 50% annual initial cash return + our tax deductions which would help us get our invested capital back the first 1 ½ years.

Charles Couch

59 Well Update 3/2/2011 – Another strong looking oil well

Steve — Thu, 03 Mar 2011 03:18:42 +0000

Guy #6 reached total drilled depth about 4 am this morning as we listened to emergency frequencies of a roaring brush fires fanned by 40+ mph winds 10 miles northwest of us in Hamby,Tx and 100 miles north of us in Matador,Tx force people from their homes into the cold night. Our oil fields are protected by wide clearing breaks around them. I was concerned for the people’s homes. I guess we will hear updates on the news.

On the mud log we view three productive oil zones in the Hope at 1820’, Patio Sand at 3134’ and Morris Sand at 3420’. This was another well for the 59 well package. Our samples we caught in the Hope oil zone looked to be productive at about 80 barrels of oil per day. The Patio was the weaker show at about 40 barrels a day. The lower Morris sand looks like a 200 initial barrels of oil + 450 mcf of natural gas per day. The magnetic came in strong at 19 for the formations which indicated the strong presence of oil. We will run the gamma ray log later this afternoon.

We spent a great deal of time testing a new sweep receiver we took delivery on Saturday to add to our screening tools. I had used this model to find two new oil fields four years ago and just got the unit back after loaning it out. The unit helps study sections up to 15,000 feet deep. We mapped the nearby growth faults trying to determine how the oil is cooked then fed up and trapped in the sands we try to produce it from..

Red Windmill #1

We have the drilling rig moved in on location and will be assembling it to begin drilling in the next few day. This is another well for the Bakken package. The magnetic read in the low twenties showing the strong presence of oil in the formations. We also ran Tuellerics test to study the possible productive formations. We are looking for a formation to place a horizontal well in under the black shale. Several productive layers look over 200 initial barrels of oil per day.

Charles Couch

59-WELL PROGRAM UPDATE February 21, 2011

Steve — Wed, 23 Feb 2011 03:20:55 +0000

Guy #6
We have begun moving the rig in on location to drill a stronger oil formation well in the Patio Sand. Our new oil imaging and gravity testing software indicates we have about 1 million barrels of untapped oil on the NW corner of section 89. We plan to start drilling Wednesday.

Left Field #1 & #2
We will sell two loads of oil from these wells shortly. We have another load of oil on location after the first two loads in a frac tank. We will pump it into the normal oil tanks from temporary storage tanks brought in during the snow storms. These wells will probably produce up to 100,000 barrels of oil each over their lifetime.

Big Black Dog #1
We are awaiting frac truck schedules to frac this well. Its initial testing revealed oil and gas.

Andrews Field (52-well rework)
We have 170 barrels to be sold in this field.

Guy #4 & #5
We have these wells pumping again. Both are showing a good oil cut after fracs. We expect these wells to produce 50,000 barrels each over their lifetimes.

Guy #7 or Kilimanjaro
After the drilling rig digs the Red Windmill #1 well, we plan to drill a deep well in the SE corner of the Guy Ranch lease. Our gravity and radiometric studies show a deeper untapped Cambria formation near 6,000’ that should initially flow over 1,000 barrels of oil per day and yield over 1 million barrels of oil. The formation maps 5,720 to 5,790’.

Our assembled technology survey team, several of whom have up to 35 years of experience studying magnetics, is very excited about this location. It is also near the highest elevation point in Callahan County.

Another zone maps at 5,130 to 5,190 and should yield over 500 barrels of oil per day. That formation also calculates over 1 million barrels of oil that will take several vertical or horizontal wells to drain once we have it verified. Lastly, we have mapped another formation under the black shale at 4840’ to 4860’ which maps very strong with our new technologies.

We are opening up many deeper objectives as we map them with the radiometric tools. So far we have not missed a pre-called depth or thickness of a producing oil formation. The key is not to drill too high on the structure but to find the channel of oil back from the high of the structure. The structural high is another untapped resource of natural gas.

Charles Couch

Left Field #1 flowing

Steve — Thu, 20 Jan 2011 01:27:02 +0000

We made significant progress in the “Left Field” today; the well shot massive amounts of oil into our mud pits The “Left Field #1” looks to be a resounding success. Battery tanks are being installed as well as “prep work” for getting the well “on pump”. Houston we have lift off!

Couch Oil: 59 Well Program Update January 17, 2011

Steve — Thu, 20 Jan 2011 01:17:09 +0000

59-WELL PROGRAM UPDATE

January 17, 2011

Left Field #2

Initial drilling results say we are four feet higher on the oil structure than Left Field #1 which is almost 700’ to the southwest. There is a very small chance for communication between well bores. The radiometric and pre-drill geology indicated the Left Field #1 well should be slightly lower on the oil structure.

The #1 well should test at 50 barrels of oil per day and the #2 well should test at 60 barrels of oil per day. Each well has three productive oil zones and the Flippen Oil Lime (the planned best oil zone) should individually produce up to 150,000 barrels of oil since they are almost 700’ apart.

We are hoping the location of the Big Black Dog #1 has dried out from snow accumulations from multiple recent cold fronts. Work over rigs will be in the Left Field and Black Dog Field next week simultaneously due to weather rearranging. The planned production on the Big Black Dog #1 well is 50 to 150 barrels of oil per day. Radiometric readings show 3 excellent deeper offset drill locations with a 500+ barrel spread over a 3 county area. I will talk about these further as we complete testing and mapping.

Radiometric, gravity and magnetic oil reservoir modeling studies. We have spoken with a patent attorney about the new technology of our validated studies. I think it has been previously validated but has been buried in white papers at SPE (Society of Petroleum Engineers) who maintained a large digital library in Richardson, TX. I have been reading through stacks of information trying to find other oil companies like Sinclair Oil, Kerr-McGhee, and others that have used these methods in their protocol.

We have eleven technologies that I am trying to model in various software graphic collective data. In our re-scan of four counties we have a 5800’ location in Callahan County, a 5100’ location in Shackleford County, a 6600’ location in Taylor County, and a 7000’ location in Jones County. All four of these locations show the “two finger marker” below the Penn Black Shale.

We are batting two for two using this newer technology on the Left Field. We are modeling some deeper oil targets that have near 500,000 barrels of oil per wellbore and show from the porosity and magnetics of the reservoir to model above 500 barrels of oil per day. We measure the radium and potassium content of the reservoir. The reflection of gamma rays decreases or the radium decreases with the presence of oil. The magnetic signature is radically changed.

In the past we could find the layers of hydrocarbons with high predictability. In the late eighties and early nineties we used wave energy absorption modeling to find large reservoirs of natural gas. Our challenge was to pick the best location in the oil reservoir to drill until we could model the oil reservoirs with magnetics. We have been seeking oil reservoirs. We found too much natural gas initially, which will be resolved as natural gas prices continue to move higher.

The last two wells confirm that we can model and find oil reservoirs with higher accuracy. With the magnetic, telluric, seismic, and radiometric signature we will now move deeper under the similar Bakken type Penn Black Shale that we had originally mapped over 18 square miles. Our new mapping shows the Penn Oil Shale to cover over 120 square miles.

Our team has picked over 40 locations with very strong signatures. The stratigraphic geology team is mapping the first four deep locations by pulling previously drilled oil well logs from our Abilene log library, the American Society of Petroleum Geologists log library, the Texas Railroad Commission log library, and the DrillingInfo.com log library. Dyn Shinde, our in-house petroleum engineer has installed updated log scanning software which helps digitize logs that were available previously only on paper.

The magnetics technology is similar to the gamma ray technology that reads down hole porosity, radium and potassium signatures on all well logs which validate the oil reservoir location. With magnetics we can portray the field on the surface or fold the gamma ray well log signature and measure the crest of the structure as shown below.

We have done this very accurately with two wells and plan to increase our accuracy. Our goal is to map 3 to 4 thick oil zones in each well in case one gets too high on the structure and finds too much natural gas. Low radium and high potassium readings indicate the most likely presence of long molecular chain hydrocarbons or oil. Natural gas is made of methane molecules. Methane is a carbon atom covalently bonded to 4 hydrogen atoms. It normally gives a higher radium and lower magnetic signature. Higher porosity gradients and thickness of the oil formation with stronger bottom hole pressures dictate higher oil flow rates.

Normally the Eastern Shelf has been limited to 5000’ drill depths due to shallower thick granite layers. When we can find deeper 6000’ to 7000’ locations, the compressed granite formation has been folded down and usually is cracked. The large oil kitchen is below the granite. Oil is forced through the cracks and in these lower trapped limestone and sandstone beds just above the deep granite.

We should find the 500+ initial barrels of oil per day type well reservoirs just above the fractured granite. If you can find such a reservoir that has enough aerial extent to be drilled horizontally at least 2500’, then you can plan for 1,500 to 3,500 barrels per day since the oil collects in large structure pools just above the granite cracks.

Magnetics and seismic portray these deeper oil structures. We have over 40 such structures located over 120 square miles. As we move deeper in the Permian Basin, the granite migrates deeper (usually below 8000’) and the formation temperatures slowly move above 272 degrees Fahrenheit or the point which oil molecules are heated enough to break down to single carbon natural gas molecules.

Charles Couch

COUCH OIL & GAS UPDATE January 12, 2011

Steve — Sat, 15 Jan 2011 02:03:00 +0000

In 2001 we fine-tuned a larger gas reservoir locator called WEA or Wave Energy Absorption. This process was refined by Dr Eugene Lichman and other Russian immigrant physicists after the end of the cold war. We have been finding oil reservoirs instead of gasreservoirs of various sizes since 2003 and have been using radiometric frequencies to help locate them.

RFT (Radiometrics Fine Tuning) has 5 frequencies. In the last month we have fine-tuned 4 of 5 RFT frequencies. Once we fine-tune the 5th, we will move closer to 100% accuracy in finding overlooked large oil reserves.

RFT works best with a blend of 10 other geophysical indicators if they are available. Geochemistry, stratigraphy, various seismic tools, radar, magnetics, tuellerics, offsetting well bore history, and topographics are required for finding larger reservoirs of oil.

On the last well we drilled (Left Field #1), we correctly predicted 3 oil reservoirs in exact thickness and depth. Estimated initial production will be at least 50 barrels of oil a day. The 2nd well (Left Field #2) will be 4′ higher in structure and we expect at least 60 barrels a day in initial production.

Today I will begin reviewing our 37 existing oil fields for overlooked deeper and larger oil reserves. A few days back we mapped a deeper formation of 4 million barrels in one of my existing oil fields. Today we plan to map another field.

The Black Shale in Texas is mapping larger in scale similar to the size and scope of the Bakken. Yesterday we mapped the formation with RFT covering 6 counties. I had previously limited my review to 2 counties. Today we will reduce our area of surface focus down in size using RFT to increase accuracy potential.

Charles Couch

59-WELL PROGRAM UPDATE January 10, 2011

Steve — Thu, 13 Jan 2011 08:54:31 +0000

Left Field #2

The location is currently being built and we are moving the drilling rig in. We have made some significant updates to our radiometric well location studies. The significant discovery in our study this time was of the many possible productive zones we found in well #1. This new technology told us in advance which zone (Flippen Oil Lime) would be the most productive. Below is the well’s plat.

Left Field #1

We are moving the drilling rig to location #2.

Big Black Dog #1

We hope to get the work over rig on location as soon as possible.

Charles Couch

59-WELL PROGRAM UPDATE January 5, 2011

Steve — Thu, 13 Jan 2011 08:10:38 +0000

This morning we began running casing on the Left Field #1 after running a gamma ray log on the well last night. As we stated in our last update, the mud log we ran during drilling indicated that this well has to have up to 12 productive oil zones.

Below is a view of the Compensated Neutron Gamma Ray Microlog header page. The Neutron Density log is 31 pages of review. The Dual Induction log is 62 pages.

With the gamma ray log, we eliminated the zones we thought would not produce as strong as others. This morning we have trimmed the zones to be tested to the following:

The highest oil zone is the Bluff Creek in the 2,100’ area.

A significant oil producer is the Flippen Oil Lime shown below around 2200’.

Here is the mud log view of the Flippen Oil Lime.

The third zone in review below is the Hope Oil Lime in the 2,350’ area.

We permitted the well to 5,000’ and drilled the well to 4,352’ and reviewed many other zones.

Charles Couch