Shallow Horizontal Oil Development in KY

Business is offering investors a low-risk, high-return horizontal oil development program targeting the Berea Sandstone within the Big Sandy prospect of Eastern Kentucky. The operator controls more than 30,000 acres of proven Berea acreage with strong geological continuity, established offset wells, and fully accessible infrastructure. Each horizontal well—drilled at approximately 1,600’ TVD with 4,000–5,000’ laterals and 20–25 frac stages—is engineered for development-style repeatability, delivering 60,000–100,000 barrels EUR with rapid early-life cash flow (historically ~70% of production in the first three years). Turnkey well cost is $1.65MM, and Hay will contribute a 25% working interest, ensuring capital alignment and meaningful operator skin in the game. The project’s 81.75% NRI supports strong net returns across all participants. Located along a structurally enhanced east-plunging nose above reactivated basement faults, the position benefits from natural fracturing, porosity development, and optimal hydrocarbon trapping—placing this program squarely inside one of the Appalachian Basin’s most reliable shallow-oil fairways.

The development plan is scalable to 5–20 horizontal wells, leveraging multi-well pad efficiencies, predictable EUR performance, and shallow, low-risk drilling conditions. Eastern Kentucky’s Berea has undergone an industry-wide renaissance, with more than 200 horizontal wells drilled, permitted, or producing in the immediate trend—many showing fast payouts and strong multi-year production stability. Reservoir characteristics are consistent (average 13.3% porosity, ~2.2 md permeability), and the formation yields premium 38–42 API oil with long-term cumulative recovery. With a large, contiguous operated acreage position, proven offset performance, low well costs, and high-margin early production, this program offers investors an attractive combination of low capital intensity, rapid cash-on-cash returns, repeatability, and meaningful development scale in one of the most dependable oil plays in the Appalachian region.

A key differentiator for investors is the optional integration of on-site Bitcoin mining using the wells’ associated natural gas. This strategy captures gas at the wellhead and converts it directly into a high-margin digital commodity, effectively creating a second revenue stream uncorrelated to oil prices. On-site data centers stabilize cash flow, eliminate gas takeaway constraints, and enhance total project economics by monetizing gas volumes with higher market outcomes. When paired with the Berea’s strong early oil production, this hybrid model creates a dual-commodity cash-generating asset with superior payback timelines, robust downside protection, and significant upside exposure; all while improving environmental performance and maximizing value per well for investors.