Our Recompletion and Workover Development Program consists of three phases, designed to bring the Company’s existing and future leases online into fully-efficient production.
Phase 1:
- We will replace the obsolete tank batteries, flow lines and electrical systems to optimize the systems;
- Work-overs for each lease will consist of replacing the old rods, tubing, down-hole pumps, pumping units and motors on the wells so that all systems are functioning at maximum efficiency; and
- Re-completions in applicable wells will consist primarily of frac jobs to clean out and increase the production of fluids from the formations in both old and new zones within the wells to permit more efficient flow of fluids from the reservoir into the well bore.
Phase 2:
- This will be a water-flood program that will serve to enhance the flow and maximize the recovery of oil from the reservoirs.
- Produced water that is separated from the collected well stream will be injected, with the addition of makeup water, into the injection wells to restore and maintain reservoir energy, thereby enhancing the flow of oil into the producing well bores.
Phase 3:
- This is our planned infield drilling program. As soon as the Company has completed Phases One and Two on the leases, we will initiate our infield drilling program to develop and produce our extensive, undeveloped oil reserves.
- This strategy was developed to yield low-risk, low-cost oil production from the known and future reserves for TX Holdings, Inc. and its shareholders.
