2 Well rework – Ector County, Texas

Two-Well Rework Project

Well Information:
• Depth: 4,600 feet
• Net Revenue Interest (NRI): 75%
• Working Interest (WI): 100%

Geological Details:
• Production comes from the Grayburg formation, a dolomitic reservoir within the San Andres platform sequence, known for good porosity and lateral continuity.
• The productive zone lies between 3,950 and 4,450 feet, with potential in the overlying Queen and Yates formations.
• The structure supports additional wellbores on 20-acre spacing, offering room for development beyond the existing two wells.
• Production has been steady but under-optimized, with recompletion efforts expected to significantly improve output.
• The field lies in a productive region of Ector County with historical analogs indicating strong well performance when properly stimulated.

Potential Enhancement Rework:

Wellbore Cleanouts & Hot Oil Treatments:
• Remove paraffin and scale buildup to restore flow.

Acidizing & Chemical Stimulation:
• Apply acid or small frac treatments to enhance permeability and access previously bypassed reserves.
• Use chemical flushes to clean formation damage and increase flow rates.

Development Potential:
• Additional pay zones in the Queen and Yates formations are untested and represent upside.
• Room exists for new drilling on undeveloped acreage using existing infrastructure.

Summary:
With minimal rework—such as acidizing, hot oil treatments, and chemical stimulation—the existing two wells on the Palmer Lease could be brought up to 8–20 BOPD. Surface equipment is in good condition, and the lease offers additional drilling potential. This is a low-cost, low-risk opportunity with attractive near-term returns and long-term upside.