Kerrville, Texas-based Quest Oil Corp. at the request of its shareholders and in response to numerous inquiries to the company after its acquisition of B&B Oil, has released a corporate overview on recent company developments.
“Since the acquisition of B&B Oil by Quest, my team has been actively preparing inventories, replacing stock items, hiring work crews and defining a three phase plan,” said President Joe Wallen.
Phase one of the plan is focused on identifying and establishing an immediate workover program to put the least problematic wells back into production. There are 136 wells capable of producing and 39 water injection wells. Field operations include identifying the least problematic wells out of the 136.
Phase two of the program pertains to lease negotiation and acquisition. “Since inception of B&B Oil, my mandate has been to identify and develop relationships within the local industry by having an ear to the ground,” Wallen said. “As announced on Sept. 9, 2010, on the negotiations of the Concho County lease, I am very optimistic on a positive outcome. Immediate workover of the two existing wells and for the four new drill locations already identified provides a good foot hold in the region. This type of project, although requiring geological evaluation, provides for a tremendous amount of geology that has been completed.”
Phase three involves drilling, site selection, survey and permitting for several locations that have already been identified. “Drilling is the basis of our business, with low risk and high deliverability as our focus,” Wallen added. “The Company’s goal over the next 12 months is to have 100-200 BOPD from our workover program and have three new wells drilled contributing an additional 250 BOPD.”