Parks
The Parks Lease is 320 acres and currently has 22 shallow wells. TX Holdings has a 75% working interest in this lease. To date we have reactivated 12 wells, 10 producers and 2 injectors. The current production is averages 60-90 barrels a month. We are in the middle of a workover and reactivation program to increase production. We anticipate 200-250 barrels per month within the next 12 months.
The zones are shallow zones, with depths less than 1,000 feet, including the following zones:
- (i) Frye, Tannehill, Saddle & Bluff Creek
- (ii) the Upper, Middle, and Lower Cook zones.
Contract Area 1
There is a total of 247 acres and a total of 36 wells. TX Holdings has an 8.5% working interest in this lease. The lease has 4 injector wells and 28 wells capable of production although production of the wells is minimal. Total current production is 5-6 bbls a day. The company believes it may be able to achieve higher production rates through the development of an effective water flood program. The water flood program involves the injection of water into the field through wells to force the oil to the production wells and thereby increasing the production rate. TX Holdings is currently working with the new operator to develop a plan to optimize the production. The operator is considering a water-flood method to increase the production while aggressively planning a 50 well drilling program for 2010.
The leases are:
"Roy Adams" (160 acres)
"Isenhower" (20 acres), Isenhower Estate "C" (22 acres), and the W. Isenhower Estate (45 acres).
C/A1 is estimated to have 85,000,000 gross BBLS of oil with 36,000,000 net BBLS of oil recoverable.
