Paradigm Oil and Gas, www.ParadigmOilInc.com – the oil and gas developer which is employing a strategy of focusing on underutilized known resource sites that can be brought up to full potential and exploited via the implementation of new technologies and processes, reported entry today into the first commercial agreement to have been produced by roll out of the Company’s Joint Venture Oil Production Program (JVOPP), which was announced last year in mid-December.
The 56 wells targeted by the agreement sit on some 133.4 acres in Navarro County, Texas and comprise a total of three oil leases.
President and CEO of PDGO, Ron Polli, explained that the agreement was an excellent opportunity to demonstrate further the true potential of the Company’s Transportable Enhanced Oil Recovery (T-EOR) Platform, which will perform initial recovery from the some 56 wells that were once in production.
Terms of the agreement specify that PDGO will be assigned the aforementioned leases, operate the sites under their bond and thereby obtain 70% of the net revenue stream (remaining 30% to lease owner) for the first 700 barrels, with 100% being retained thereafter.
The JVOPP is a bold initiative launched by PDGO in the state of Texas and represents the first of many future engagements that the Company will pursue there, in other states and in other countries. PDGO will thusly leverage the oil and gas trend in global markets, where soaring demand and logistically capped supply chains mean massive profit.
The T-EOR Platform represents a new paradigm in the production industry, featuring extremely fast deployment time and excellent portability, the system is designed to harvest from previously producing wells that are underdeveloped.
The T-EOR Platform represents an ideal turnkey solution that PDGO will gain incredible momentum from as the Company pursues strategic growth through the JVOPP and other actions.
Polli extolled the benefits of the T-EOR Platform for this particular job, as the system will generate the necessary data for measuring natural flow rates at the wells as it gathers production from each, offering an ideal reference site to underscore the system’s potential.
The Company has shown a decidedly more aggressive posture as the global energy market heats up, now acquiring some 1,148 acres total in Texas with 23 previously producing wells and the potential to support some 30 new wells in the 3.8k-9k foot range, and roughly 100 new wells in the 800-1.8k foot range.