Credo Petroleum Corp., an independent oil and gas exploration and production company with assets in North Dakota, Kansas, Nebraska, Texas and Oklahoma, has updated its Kansas and Nebraska drilling project with the discovery of six new oilfields.
Michael D. Davis, CEO, stated, "Our initial analysis of the new fields indicates potential for about 25 direct offset locations. In addition, successful offset drilling should generate step-out locations. Credo's working interest ownership in the new fields ranges from 49% to 75%.”
Davis continued, "Nebraska is a relatively new oil play for Credo where there is more opportunity to apply our regional concepts to higher potential wildcat drilling compared to the Central Kansas Uplift."
To date, Credo has shot over 200 square miles of 3-D seismic in Kansas and Nebraska and has drilled 110 wells in Kansas and 18 wells in Nebraska. The company's drilling success rate is 40%, yielding "all in" risked adjusted internal rates of return (at current oil prices) of approximately 100%.
For fiscal 2012, the company budgeted $9.8 million for drilling in Kansas and Nebraska, up 17% from last year. Forty-five (45) additional oil wells are scheduled for the remainder of this year with three new seismic shoots covering 66 square miles.
Davis continued, "Our Kansas and Nebraska asset is generally over-shadowed by our Bakken and Texas Panhandle horizontal drilling plays, and we believe its value and growth potential are generally under-appreciated. (It) is now providing about one-third of Credo's revenues, and we believe it will continue to be a significant growth driver in achieving our goal for oil to represent 75% of our production volume mix by year end."
Credo Petroleum Corp., based in Denver, Colo., has significant operations in the Williston Basin of North Dakota, Kansas, Nebraska, the Anadarko Basin of the Texas Panhandle and northwest Oklahoma, and in southern Oklahoma.