kentucky historical

USA Kentucky
Westralian Gas and Power Limited achieved a significant milestone in 2006, "revenue".
The Board considered a number of Oil and Gas opportunities world-wide that fit the model for a small exploration company and came to the conclusion that it was wiser to look to the industry's roots rather than strike out into unknown territories.

With the oil price sitting over US$60 per barrel many older oil fields may now hold the secret to success for the smaller serious explorer. Where better to start than near the site of America's first documented gusher the "American Oil Well" near Burkesville Kentucky. http://www.uky.edu/KGS/emsweb/history/predrake.htm

In March, WGP acquired two oil leases in the same area, the Carter and Stockton Lease. The Company acquired these at low cost and gives the Company 100% Working Interest and 87.5% Revenue Interest. The acquisition included eight pump jacks, 5 oil storage tanks of approximately 100 barrels per tank, in field flow lines and electrical equipment for running the pumps. WGP banked it's first cheque within 10 weeks.

Oil was first found in the area in March 1829 at 210 feet by farmers looking for salt water, "The First American Gusher" as it was named many years later spouted oil as high as the nearby trees" (50 feet) and flowed for many years. There was no demand for the oil at that time. Historical Ref: 'Thomas Ellison of Burkesville'.

Later when the demand for oil started, more wells were drilled, producing from 3000 to 5000 barrels per day, in the vicinity of WGP's Carter Lease. However interest in Kentucky dropped off following the big oil discoveries in Texas and other states.

“The Kentucky Geological Survey”, suggests that due to antiquated exploration methods and technology, up to 70% of the original oil may have been left behind.
Mr Thomas said "our approach is simple, rework some of these old wells and indeed old oil fields with new technology and see what they bring”.

Eight years ago, oil was US$18 per barrel and a well producing one barrel per day would gross US$6,500. Today still producing 365 barrels per year at say $65 per barrel that same well will gross $23,750.

Based on current production, "WGP” will Nett about $415,000 per annum from these leases before any rework. This revenue alone will allow development of many new wells and cover many overheads, leaving shareholder capital for exploration and further development.

"We have new technology on our side so there is a very high likelihood that we can make these old timers show they still have the spark of the past", said Mr Thomas.



http://www.westraliangasandpower.com.au/operations.asp