September 19, 2018 Grantsville, West Virginia
Hugh Dale-President – Drilco Oil and Gas has begun the construction phase of the Drilco 2018 1H Drilling Program. We have completed servicing, and begun delivery of all heavy equipment to Ritchie County for site preparation. We expect to be in construction through to the beginning of October.
Hurricane Florence has brought heavy weather and delays to this region.
We are executing a strategic plan to develop lease acreage outside of Auburn, West Virginia by drilling multi-well pads with 3000′ horizontal legs. “Horizontal drilling is now the trend in West Virginia” says Hugh “It was previously not considered for the shallow wells being drilled in this region.” Within the last 2 years, major producers like EQT and Nytus Exploration have proven that to be a thing of the past with single horizontal wells averaging 150-300+ barrels of oil per day. “A deep, multi-well, horizontal well pad in the Appalachian Basin can far exceed anything we have seen in this region, ever.”
The problem has always been financing.
“This area of West Virginia has a challenging financial climate. Local and regional independent producers have been developing these oil fields on limited funding for decades. After the discovery of the Marcellus Shale, this land was meticulously combed with geological studies, and these majors are now coming from outside, buying up and developing under developed oil leases and taking away our states natural resources.”
Drilco Oil and Gas has sold out a percentage of their ownership to the private sector to fund the remaining themselves and retain total control of development operations. “We own or own the rights to develop 14,000+ acres throughout the Appalachian Basin, and this is exactly how we are going to do it.”