Fossil Oil Company, LLC announced their first offshore drilling project set to commence drilling operations in August 2015, offshore Galveston Bay, Chambers County, Texas.
"For years, I have been looking for the opportunity to participate in an offshore drilling project for our investor base," explained Dennis Kittler, Fossil Oil's President. "The primary hurdle has been the enormous costs involved in generating deep water prospects. This is why 90% of the participants in offshore drilling projects are larger independent and major oil companies."
After 40 years in this business, Mr. Kittler's dream came true when Fossil Oil acquired the last Working Interest percentage in a 1,920 acre offshore State Tract called the North Eagle Bay Prospect in April of this year. Fossil Oil's team of specialists reviewed and analyzed all the 3-D seismic data, including the lower cost of drilling a shallow water well, resulted in an overwhelming approval to participate. As Managing Partner, Fossil created the Fossil – North Eagle Bay Offshore JV – I – 2015 ("Prospect").
The "Prospect" is located in 10 feet of water in Galveston Bay on a 1,920 acre offshore State Lease block in Chambers County, Texas just 50 miles south of Houston, TX. This lower risk Prospect lies within the prolific Frio-Vicksburg producing trend of Southeast Texas. The Prospect was generated using a 30 square mile 3-D seismic survey covering the Western Galveston/Trinity Bay 3-D area. This ultra-high-resolution 3-D data was just reprocessed with the newest 3-D seismic software by Geotrace Technologies of Houston.
"This Offshore Project has tremendous economic potential. Fossil could possibly drill 3-4 additional Wells," clarifies Fossil President, Dennis Kittler, "and that each well could reflect the anticipated initial production rate of 1,250 Barrels of oil/condensate and 22 Million Cubic Feet of Natural Gas each day. Many of the surrounding wells drilled to this "Prospect" have done this repeatedly."
Fossil Oil's geophysicists, geologists, and engineers have projected that a new field discovery well could encounter as much as 24.7 Million Barrels of Oil and 102.6 Billion Cubic Feet of Gas to the 100% ownership.