At Payson Petroleum, We're Not Wildcatters.
Payson Petroleum prefers low-risk drilling, concentrating on seasoned developmental fields.
Before production can begin, a prospect area must have the proper infrastructure and services in place.
We do not see a reason to invest the capital necessary to bring a well online, if you are not able to bring your product to market in good time.
For this reason, Payson has compiled an 8-point checklist of standards each deal needs to meet before we will secure an investment:
• 75% or better area success rate
• 10+ years of production data
• 3-to-1 return capabilities over the life of a well
• Multiple pay-zones must be present
• An attractive exit strategy for a small to mid-cap public company
• Infrastructure in place (pipeline and oil purchasers)
• Nearby service companies to ensure efficient operations
• Good quality of oil and natural gas (not heavy oil or sour gas)
Our commitment to upholding these specifications has led to incredible outcomes. As of the second quarter of 2013, Payson had invested in more than 61 wells with a combined production of over one million barrels of oil — and still pumping.
The Hogshooter Formation has become a fairly high profile play. Its geology is perfect for unconventional horizontal drilling and multiple-stage hydraulic fracturing.
Several operators have had success maximizing production out of the Hogshooter within the Granite Wash Field of Western Oklahoma and the Texas Panhandle. The formation has also proven to contain sweet spots in the Anandarko Basin in the Texas Panhandle.
One high profile example of the Hogshooter's production capacity is Chesapeake Energy's Thurmon Horn 406 H Well in Wheeler County in the North Texas panhandle. During an initial production test, the well flowed at roughly 7,350 Barrels of Oil Equivalent per Day (BOEPD) for over 8 consecutive days.
Mississippian Chat Lime
We are currently seeking capital funding to acquire 3,000 - 4,000 acres in the Mississippian Chat Lime in Central Oklahoma.
Our initial project development plan is to partner with mid-sized public companies to create a 10 - 20 well program. Provided crude oil prices remain at current market levels, we plan to begin drilling in the near future.