Amarillo, TX (Vocus) July 15, 2009
Oil prices are on the rise! Integrity Natural Resources, LP strives to only participate in lower risk oil and gas drilling programs. Integrity invests their own money into each project along with their group so that they can all enjoy the rewards of successful oil and gas exploration profits. Times are tough in the United States right now, so it is very important to do business with a good, honest company full of Integrity with a great track record.
Integrity has remained a small company with little overhead so it keeps everyone's costs way down from the typical oil and gas company in the market today. Integrity also uses the very latest technology in their oil and gas exploration techniques which highly increases their success rate. They are about to drill their 10th oil and gas well in Ohio over the next 30 days or so. The Integrity team and their group are very excited about this next project and have very high expectations.
Although the market is much slower now and a ton of oil companies are not drilling, it is still a good time to get involved with oil and gas exploration. One of the most asked questions is of course how things go from start to finish?
What To Expect In This Region:
Once the funding is in, the road is started to the drill location, the location is surveyed, and permits are filed. This typically cannot happen until the project is 100% funded. Roadwork usually takes seven to ten days, surveying about three to five days, then Integrity can walk the permit through in about a day. After permits are obtained and the site location is approved by the state, site work begins. This can take as long as three weeks or more depending on the location and the severity of the work. Once the location is squared away, the rig is moved on site. This is roughly a two day process. When INR has the rig in place, the drilling begins. It usually takes about three days (drilling 24 hours a day). After the concrete is poured they let it set up over night. After the casing sets up they can drill out from under and into the payzones. This can take two or three days to hit total depth. Once INR hits total depth the well is immediately logged. This takes about a day.
The log is then brought out of the field and read by as many as five different sources. These interpretations are key in determining the Frac job. This can take up to a week or so. Once the frac plan is established, Integrity is put onto the schedule, based on what is needed and the time it will take to complete the job. It is not uncommon for the schedule to have them out as long as three or four weeks. The well sits swedged in during this period and pressures are monitored. Once the well is frac-ed Integrity has an idea of what they have got.
Then the determination is made, as to where the gas will go, and tanks are set in place for the oil. With negotiations this can take a week or sometimes more. Integrity then swabs the well clean and gets the pump jack in place. This takes a day or two. At this point they can typically start producing oil. The first revenues take about forty -five to sixty days, to receive. They are received monthly thereafter, based on the amount of oil sold before the cut-off date of the previous month. During the first bit of production is not uncommon to bleed off nitrogen left over from the frac, this can take about a week or so.
Once the gas is free of significant amounts of nitrogen, the meters are put in place (takes a couple of days) and the gas is put into production. The first revenues from gas take about three months from the time of the first purchase. This is not Integrity's process, but the gathering community standard. After the three month lag period revenues are then received on a monthly basis. As you can see there is a lot that goes into each project. This is why it is so important that Integrity Natural Resources, LP do things as timely and proficiently as possible. Ultimately the timeliness of a project is dictated by those people participating in the particular process. Invest in oil wells.