AZRH if ur not in yet people, what r u waiting for .50s? Excited for cohen to get out to Lubbock tomorrow. His new truck arrived earlier tonight, he's got a new company man starting this week and the group is finalizing the installation of Amplified well control and automated gauging on its active well bores and oil storage tanks (https://amplified.industries/)
This tool has the same capabilities as Scada or Lufkins well monitoring softwares but at a fraction of the price, and enables Cohen and Clay and Genaro (the company's production engineers) to dial in the well's performance to manage down time, and fillage to optimize performance and eliminate efficiencies, which in turn allows for much more proactive management of the companies assets vs being reactive to issues and looking for problems that are inhibiting production (a reality of aged infrastructure and older wells).
The company that was hired that starts tomorrow will now be guided by the alarms set by the tool, and we believe that this tool is critical for maintaining and stabilizing optimal well performance and will allow the company to scale much better vs relying on manual gauging.
Additionally, as mentioned last week - the company will be making its first $7500 payment towards the pay due property taxes.
Regarding leases severances - yes, some leases were severed as a result of failed H15 tests submitted by DP Permian who was the prior operator before selling to Vision in September 2024. That said, the company has the ability to perform "ADA" tests which are a much more efficient form of an MIT and are around $1k per test. The company will start with the Dean Unit B lease, before moving to the Calvin Starnes, and then the Masten, Dean Unit and League 91 Leases. The company is compliant on the Cunningham and Blake leases and the Starnes Ranch leases which are some of the companies top historical producers at the individual well level.
The company is in deep discussion with both Rise Capital (Brent Franklin, one of Cohens best friends and an emerging driller) and Primo Field Services (an emerging and leading Surface driller for major oil and gas companies in the Permian Basin).
The company to date has completed 10 workovers and 2 reperferations + restimulations. The company will be focusing on completing additional workovers (pull tubing to replace joints with Holes in the Tubing, pump refurbishments, run Xylene to bust parafin, run 400 gallons of HCL 15%) until the lease for the Dean Unit B is unservered, and then it will return to it's reperforation + restimulus program to complete 37 wells on the Dean Unit B targeting 10 Barrels of Oil per day uplift per well. The company is currently capitalized with cash on hand and in personal bank accounts held by Cohen to complete at least 15 more workovers + 17 Dean Unit B Reperforations + Restimulations by the end of this fiscal year (note that a completed workover is expected to produce 2 barrels per day).
The company also intends to address flowline replacements from well head to storage tanks to increase fluid flow and reduce daily inhibitors that could be slowing production flowing to the tanks.
The company's currently stable at 85 barrels a day vs 15 barrels a day from when Cohen and Watson completed the merger of Vision, and compared to 120 barrels a day which was the 4 years average daily stabilized production of DP the prior operator.
Once the company completes all 39 Dean Unit B reperforations + restimulations (expected target date 3/31/25 unless the company closes on $500k of outside investment capital), the company will then focus its efforts on the Calvin Starnes Unit Lease with the intention of replicating the horizontal sidetracks under the same wellPlan that was deployed on the Starnes Ranch 34, 35 & 29 leases (with well production of 53,000 - 65,000 average barrels produced per well). Cohen and Clay are refining the AFE now and anticipate these wells to cost $300-$350k per well, with an average cumulate revenue return of +$3.0M of lifetime revenue over the well, per well. The company also intends to continue its reperforation + stimulus program on the Calvin Starnes lease in additional to the sidetrack / horizontal's just described, as well as on the Masten, Dean Unit and League 91 leases.
The company will be avoiding ESPs, but will be required to convert more wells into injector wells off of existing well bores.
This week, the new company man will also be address check valve replacements.
This as well as more specifics on the company's forecasts for 2025 (fiscal year) - 2026 - 2027 (with and without outside) will be included in the company's press release going tomorrow before market close, as well as mention of the company's growth strategy through its acquisition pipeline. We are expecting a big week all around, and Cohen and the team have a lot of momentum pushing the company in an incredible direction at a faster pace than I think even they expected or realized upon completing the acquisition of Vision.
This tool has the same capabilities as Scada or Lufkins well monitoring softwares but at a fraction of the price, and enables Cohen and Clay and Genaro (the company's production engineers) to dial in the well's performance to manage down time, and fillage to optimize performance and eliminate efficiencies, which in turn allows for much more proactive management of the companies assets vs being reactive to issues and looking for problems that are inhibiting production (a reality of aged infrastructure and older wells).
The company that was hired that starts tomorrow will now be guided by the alarms set by the tool, and we believe that this tool is critical for maintaining and stabilizing optimal well performance and will allow the company to scale much better vs relying on manual gauging.
Additionally, as mentioned last week - the company will be making its first $7500 payment towards the pay due property taxes.
Regarding leases severances - yes, some leases were severed as a result of failed H15 tests submitted by DP Permian who was the prior operator before selling to Vision in September 2024. That said, the company has the ability to perform "ADA" tests which are a much more efficient form of an MIT and are around $1k per test. The company will start with the Dean Unit B lease, before moving to the Calvin Starnes, and then the Masten, Dean Unit and League 91 Leases. The company is compliant on the Cunningham and Blake leases and the Starnes Ranch leases which are some of the companies top historical producers at the individual well level.
The company is in deep discussion with both Rise Capital (Brent Franklin, one of Cohens best friends and an emerging driller) and Primo Field Services (an emerging and leading Surface driller for major oil and gas companies in the Permian Basin).
The company to date has completed 10 workovers and 2 reperferations + restimulations. The company will be focusing on completing additional workovers (pull tubing to replace joints with Holes in the Tubing, pump refurbishments, run Xylene to bust parafin, run 400 gallons of HCL 15%) until the lease for the Dean Unit B is unservered, and then it will return to it's reperforation + restimulus program to complete 37 wells on the Dean Unit B targeting 10 Barrels of Oil per day uplift per well. The company is currently capitalized with cash on hand and in personal bank accounts held by Cohen to complete at least 15 more workovers + 17 Dean Unit B Reperforations + Restimulations by the end of this fiscal year (note that a completed workover is expected to produce 2 barrels per day).
The company also intends to address flowline replacements from well head to storage tanks to increase fluid flow and reduce daily inhibitors that could be slowing production flowing to the tanks.
The company's currently stable at 85 barrels a day vs 15 barrels a day from when Cohen and Watson completed the merger of Vision, and compared to 120 barrels a day which was the 4 years average daily stabilized production of DP the prior operator.
Once the company completes all 39 Dean Unit B reperforations + restimulations (expected target date 3/31/25 unless the company closes on $500k of outside investment capital), the company will then focus its efforts on the Calvin Starnes Unit Lease with the intention of replicating the horizontal sidetracks under the same wellPlan that was deployed on the Starnes Ranch 34, 35 & 29 leases (with well production of 53,000 - 65,000 average barrels produced per well). Cohen and Clay are refining the AFE now and anticipate these wells to cost $300-$350k per well, with an average cumulate revenue return of +$3.0M of lifetime revenue over the well, per well. The company also intends to continue its reperforation + stimulus program on the Calvin Starnes lease in additional to the sidetrack / horizontal's just described, as well as on the Masten, Dean Unit and League 91 leases.
The company will be avoiding ESPs, but will be required to convert more wells into injector wells off of existing well bores.
This week, the new company man will also be address check valve replacements.
This as well as more specifics on the company's forecasts for 2025 (fiscal year) - 2026 - 2027 (with and without outside) will be included in the company's press release going tomorrow before market close, as well as mention of the company's growth strategy through its acquisition pipeline. We are expecting a big week all around, and Cohen and the team have a lot of momentum pushing the company in an incredible direction at a faster pace than I think even they expected or realized upon completing the acquisition of Vision.
