Sand Draw South Oil Project:

Overview:

• Field discovered in 1954
• Historically produced at peak of 600 BOPD
• Elk acquired in 2005 when producing at 35 BOPD

Operations:

• Workovers on 6 wells increased production approx 220 BOPD
• New production from lower Phosphoria formation
• Potential for new production from upper Phosphoria
• Reserves certified at 680,000 BBLS (1P) and 1,010,035 BBLS (2P)

Projects:

• Additional zones remain to be tested at Sand Draw South as economics permit. One plugged and abandoned well is considered to be a potential candidate to be re-entered and placed back on production
• The potential for additional wells to be drilled at Sand Draw South is dependent upon the cost versus reward risk and economic priority justify

Project Photos:

Photos of the Sand Draw South oil fields can be found here.