The Shiloh Oil & Gas Leasehold
This leasehold straddles 4 counties in Southeast Kansas Allen County, Woodson County, Wilson County, and Neosho County. The 4 counties where the leasehold is located realized production of 719,217 barrels of oil and 7,299,945 MCF of natural gas in 2022.
This project was last put together by Admiral Bay Resources in 2007 and produced over 3.8 BCF of gas for Exodus Gas & Oil LLC.
Geology
This project lies in the Cherokee Basin just to the south of the Bourbon Arch, which borders Kansas and Oklahoma. Available data and mapping indicate the basement structural features in the area of the state are located on the top of Arbuckle in southeast Kansas, as well as the top of the Mississippian Formation. Major structural features show that the Bartlesville Sandstone, Squirrel Sandstone and Mississippian are productive formations.
This area is called the "Coalbed Methane" formation, which can be seen from the perforations on the cross section of the Sandstones, Bartlesville and Squirrel area of the reservoirs. Also, the Mississippian is usually a limestone formation, which has the potential for oil and gas and in certain areas helium.
The Opportunity
In August of 2023 Global conducted a gas pressure test on the project with a local geologist. The test indicated that 90% of the 114 well bores were available for rework and ready to be swabbed and pumps inspected to be put back into production. It also indicated that the Natural Gas was 92% Methane.
Global will begin the process of doing a workover on 100 wells with the objective to reactivate the wells in stages, targeting initial production volume of 500 MCFG/D and then ramping up to 1,000 MCFG/D.
The leasehold previously also produced oil from a couple of wells, although the previous operator did not target the oil. Global will do a workover on a couple of oil wells, assess the potential to re-work and convert some of the lower producing gas wells to oil, and then begin a drilling program, targeting oil formations which include the Squirrel and the Bartlesville Sands formation.
We have leased 5,000 acres in Kansas and identified 50 initial oil drilling locations based on our Reserve and Engineering Report.
Estimated oil reserves are 926,500 BBL.