In December 2013, I let our readers in on a way to invest directly in a new oil and gas drilling venture.
In the time since, I've been spending a great deal of time at the drilling site in South Texas, keeping an eye on the progress.
Now, there's news to report. Great news...
It's a gusher! Test wells at Money Map Project #1 have struck oil and gas in very promising quantities.
The strike happened suddenly, and production was nearly overwhelming, with barrels filling and gas flares lighting up the sky, revealing great potential natural gas opportunities as well.
And there was even more good news coming from elsewhere in Texas, where it looks like we have zeroed in on another "sweet spot."
But first, let me describe to you what just what happened in South Texas, because you don't want to miss this incredible - and massively profitable - news...
Here's How the Amazing Scene Played Out
On May 10, when the Willard #1H-2 well encountered a veritable gusher of oil and gas at an early stage while drilling horizontally in the Buda Lime, the production was coming in at four barrels a minute.
In all, between 200 and 300 barrels of oil quickly accumulated in the pit, while a gas flare of between 40 and 70 feet also occurred.
As a result, the #1H-2 flow was closed off on Sunday to complete the drilling. The well still had about 1,500 feet to go into the Buda Lime. Upon completion, both components of the drilling program (#H-1 and #H-2) will be brought on line together for full production.
This was the scene in Burleson County, Texas, on Saturday.
Keep in mind, these are only the first two of a 25-well project, and Money Map Project #1 investors will receive profits for the life of the wells.
But the fun didn't end there. When flow was opened again on Wednesday, things got even better.
Despite the fact the well hasn't even been put into full production yet, we first received 100 barrels and then 250 barrels per hour.
By day's end, we had over 1,500 barrels in the pit (with deliveries already commencing) and a steady gas flare of 50 feet.
Today, the field crew is slowing down the flow rate to finish up the drilling. Initial estimates on site put this single well - #1H-2 - at daily production of between 1,000 and 2,000 barrels.
At current market prices that would throw off as much as $200,000 or more in revenue each day.
All from just our first well.
It followed an earlier decision to extend the Willard #1H, which had been completed into the Austin Chalk, with a second drilling below into the Buda Lime, thereby saving time and drilling expenses (the rig was already there and operating). We decided to hold the flow from the first well until the second is completed to maximize the production return.
Initial indications now point toward a reserve of both oil and gas much larger than even I had hoped for. But that will be borne out only when full production commences shortly.
Another Sweet Spot... And It Just Gets Better from Here
But again, that's not the only good news I have today...
About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.