Knox County 2 Well Oil Drilling Project Seeking Fully Accredited Investors

Black Gold Exploration, LLC, is a small minority owned fully compliant, independent oil and gas Energy Company, based in Texas. Our Cartwright #1 and #2, Knox County Texas project has shallow oil potential and proven production from 1980 to 2003. Currently, there is 1 existing injection well and 3 existing producing oil wells. There are at least 4 separate sandstones that produce oil in the Baylor-Knox shallow trend. These sandstones are the Wolfcamp, Saddle Creek, Tannehill, and Stockwether limestone. Geologist Steve Case performed a Telluric Survey Test to evaluate the Tannehill Sandstones and the tests showed favorable crude oil production in the Tannehill Sand Formation at approximately 1800’ feet. The Tannehill Sand at 1780’ is productive in 3 wells on this lease. 1 of the wells has been turned into a saltwater injection well, which will serve as a water flood into the Tannehill A Sands. The original operator, Mr. Cooper, died in 1983 and since his death the leaseholds and wells he operated have had little work done on them. Mr. Cooper recovered over 200K BO from the Cartwright Q and 200K BO from the Carlin Lease, which our lease offsets. Black Gold is looking to continue the development of this lease with the drilling of 2 new wells to a depth of 1800 ft. in to the Tannehill Sands.  The 1st location is a site selected and permitted by Mr. Cooper, who died before the well could be drilled. It is located in the NE corner of the lease and offsets past production (IP’s of 47, 31, and 38 BOPD). The 2nd location will offset well #1, which IP’d at 77 BOPD. These wells should IP at 55 - 125 BOPD with an estimated reserve of 40K - 65K BO per well. Since we know the Tannehill Zones are productive, these wells are considered to be low risk infield development. Based on 60 BOPD and $90 oil, a $70,000 investment (10% working interest), would mean a 208% annual return on your investment, a 5.8-month payout, or a monthly revenue check of $12,150.

BLACK GOLD EXPLORATION, L.L.C.
Overview of Cartwright #1 & #2 Knox County, Texas
Oil Project
The Cartwright #1 and #2, P.V. Cartwright West Lease, Knox County Texas project that has shallow
oil potential. The P.V. Cartwright West lease has proven production from 1980 to 2003. Currently, there is one
existing injection well and three existing producing oil wells. This prospect is based on the drilling of Glenn W.
Cooper. The Cartwright Project consists of 320 acres in Knox County, Texas, covering all of the North Section
73, Block 45 of the H&TC RR Co. survey. The acreage lies in the Baylor-Knox shallow oil trend, which
extends from near Seymour in Baylor County, southwesterly some 45 miles through Knox County. The trend is
5 to 10 miles wide and closely parallels U. S. Highway 277 from Seymour to Munday in Knox County. The
Cartwright Lease sits on Highway 277 one mile north of Goree, Texas in Knox County.
There are at least four separate sandstones that produce oil in the Baylor-Knox shallow trend. These sandstones
are of the Wolfcamp (lower Permian) age and are encountered between the Ibex (Dothan) limestone and the
Saddle Creek limestone. The Camp Colorado (Noodle Creek) limestone and Stockwether limestone, which
occur in this interval, are also in the Baylor-Knox area.
In January 2006, chief geologist Steve Case performed a Telluric Survey Test (see page 6) to evaluate the
Tannehill Sandstones and the tests showed favorable crude oil production in the Tannehill Sand Formation at
approximately 1800’ feet. Mr. Case has had a 100% success ratio for the past several years, and given previous
production, and multiple wells, we feel that this is very low risk and should produce as predicted.
Originally, the uppermost producing sandstone in the trend was called the “Noodle Creek” later being changed
to the Tannehill. As development progressed in the trend and production was encountered in sandstones
stratigraphically lower, these lower sandstones were also called Tannehill. The estimate of ultimate recoverable
oil from the entire producing trend averages near 400 barrels per acre-foot. It is believed that proven reserves in
the Baylor- Knox area were in excess of 20 MMBO in the mid fifties.
The Tannehill A Sand at 1780’ is productive in 3 wells on this lease acreage. The acreage was originally drilled
in the 1980’s, with a total of 6 wells drilled over the years. These wells were all drilled to less than 2000’ on 2
acre spacing. One of the wells has been turned into a saltwater injection well, which will serve as a water flood
into the Tannehill A Sands. The wells have produced 25,372 BO since 1980 and been shut-in since the early
nineties. The original operator, Mr. Cooper, died in 1983 and since his death the leaseholds and wells he
operated around Goree have had little work done on them. Mr. Cooper recovered over 200K barrels of oil from
the Cartwright Q Lease, which is just to the northeast of our drilling prospect. Our lease is offset due northeast
to the Carlin Lease, which has also produced more than 200K barrels of oil; one of the wells still in production
there today was drilled in 1956.
Black Gold is looking to continue the development of this lease with the drilling of two new wells to a depth of
1800 ft. in to the Tannehill Sands. These wells will be drilled using new logging technology to see if any
formations above the Tannehill might also be productive. The first location is a site selected and permitted by
Mr. Cooper, who died before the well could be drilled. It is located in the northeast corner of the lease and
offsets past production (IP’s of 47, 31 and 38 BOPD) due north as well as to the south. The second location will
offset well #1, which IP’d at 77 BOPD. These wells should IP at 55 - 125 BOPD with an estimated reserve of
40K - 65K BO per well. These sands do make water, but with the injection well already in place, this will cut
overall cost and provide a system to increase production from the Tannehill A Sands.
Since we know the Tannehill Zones are productive, these wells are considered to be low risk infield
development, going into the upper and lower zones of the Tannehill with an upside of possible other productive
zones up hole. The success of this drilling program will lead to additional drilling and more injection wells to
complete a future water flood of the Tannehill Zones which could possibly double production and extend the
life of the wells on the lease.
Geological studies show the possibility of deeper formations that could be very productive; there are several
deeper producers in the immediate area. Since we know the shallower zones are productive, it would constitute
drilling several more wells on the acreage.

Next Steps

Press the Contact Now button to send and inquiry about the listing

• Save to Watchlist
• Share this listing: