Royal Quantum Group, an oil and mineral exploration and development company based in Calgary, recently announced the completion of their Bond #1-18 oil well, located in Noble County, in north central Oklahoma. The well was perforated in the Wilcox formation, and open flow tested without stimulation at an initial rate of 20 barrels per hour of light crude. In keeping with good engineering practice, the well was choked back to a 9/64 choke, and is currently flowing at a rate of approximately 120 barrels per day. (The average Oklahoma oil well produces about 2 barrels per day.)
Oklahoma is the fifth largest producer of crude oil in the U.S., generating over $23 billion annually for the state’s gross domestic product, and the Wilcox Zone is one of Oklahoma’s most prolific oil producing zones. A number of offset locations could be drilled on surrounding lands in which the company has an interest. In addition, analysis of log data from the Bond well indicates the possibility for production from the Mississippi zone, although the Mississippi zone will remain behind pipe during production of the Wilcox zone. The company does expect that both the Wilcox and Mississippi zones will be productive in offset locations.
Royal Quantum gained a 25% interest in the Bond well through financing received from the sale of 55 units at a price of $2,500 per unit. The company will distribute 60% of its net revenue received from the well to the unit holders. Crude oil prices have been moving between $70 and $80 a barrel.
Royal Quantum Group, Inc. is focused on the acquisition of near term cash flow producing projects for exploration and development, with the goal of bringing the projects to feasibility. They continue to evaluate opportunities in oil as well as gold, silver, and copper.
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