Adino Energy Corp. is an emerging oil and gas exploration and production company. It is focused on mature oilfield assets with significant redevelopment, workover and enhanced oil recovery potential. The company also has a wholly-owned subsidiary, Intercontinental Fuels LLC, which operates a fuel storage terminal in Houston, Texas. Its terminal stores fuel and then distributes petroleum-based products and bio diesel to local wholesale and retail fuel distributors.
Adino Energy’s oil and gas business, however, is the more interesting part of the company from a growth perspective. About a year ago, Adino acquired 100 percent of the membership interests of Petro Energy for 10 million shares of Adino common stock. Petro Energy is a licensed Texas oilfield operator currently operating 11 wells on two leases covering approximately 300 acres in Coleman County, Texas. Adino also acquired the operator license held by the principal of PetroGreen and Petro 2000 Exploration company.
The acquired leases have mature production from eight proved developed producing wells and three saltwater disposal wells. The area has been active from an oil production standpoint since the 1950s. Reservoir pressure has dropped over time but Adino believes that significant oil remains in place. The company plans a waterflood project, which it thinks will substantially increase both daily production and economically recoverable reserves.
Since the acquisition, the company has completed Phase 1 of its workover program on its Felix Brandt leases in southeast Coleman County, Texas. With the completion of Phase 1, Adino has eight oil wells in production. It also has been drilling on the neighboring James Leonard lease. The primary target pay zone is the Fry Sand at approximately 1,200 feet. Adino owns 100% of the working interest and 86.5% of the revenue interest on this lease.
Adino Energy continues expanding its acreage in Texas. In April, the company acquired the 300 acre Coats lease in northeast Runnels County, Texas. The lease currently has one shutin well only. However, the company has already identified 14 drilling prospects on the lease. Adino Energy’s continuing strategic goal is to build its operating cash flow through low cost development drilling.