United Oil & Gas acquired the Hilltop lease in 2015 and has started the re-development in late 2016. The adjacent 7 Fingers lease was acquired in 2017. United Oil & Gas’ Hiltop and 7 Fingers Leases are located on the Hendricks Ranch.
T.G. Hendricks purchased 22 sections of land and would continue buying land until the ranch would extend over 53 sections (34’000 ac).
Oil was found on the property in February 1926 by Eastland Oil Co. and it began flowing in July. The first flow was so hard it went two or three times as high as the old standard wooden derrick.
The well was deepened to 3,000 feet and increased production from 150 to 400 barrels of oil daily. This opened the development the Hendrick field. Gulf, Independent, Republic, Magnolia, Texon, Reynolds, Amerada, and Atlantic bought leases in this area.
Throughout the 1950s and 1960s production remained above a million barrels a year. Throughout the 1970s and 1980s it hovered around a half million barrels. On January 1, 1991, the field reported 181 producing wells with production of 500,340 barrels of oil and 356,321,000,000 cubic feet of casinghead gas. The field’s production over six decades of 260,957,163 barrels of oil placed it among the largest West Texas fields.
United’s Hilltop holding consists of 17 wells and 4 water injection wells. The 7 Fingers Field contains 9 oil wells spread over two leases, and 2 future drill sites.
Next steps include the analysis of the existing wells and their necessary workover procedures in accordance with our petroleum engineer’s recommendation. Most work will consist of circulating the wellbores clean, acidizing perforations and changing downhole pumps. United Oil & Gas plans to initiate secondary recovery by injecting water from the water supply well into 2-3 injection wells as parts of a planned, engineered waterflood. The principal reason for waterflooding an oil reservoir is to increase the oil-production rate and, ultimately, the oil covery. This is accomplished by “voidage replacement”—injection of water to increase the reservoir pressure to its initial level and maintain it near that pressure.
Safety and compliance with environmental guidelines are of the highest priority at United Oil & Gas. To provide a safe and clean working environment protects our employees and nature.
The Q4 video update provides a summary of United Oil & Gas' activities in the fourth quarter of 2017, as well as an outlook for the planned work in early 2018.