Mondial Ventures, the Scottsdale, AZ-headquartered, independent oil and gas E&P with total reserves via its Texas properties of some 114.7k bbls and 909.7k MCF, is rapidly carving out a substantial regional position based around its footprint in the Permian Basin. MNVN has devised a clear mandate to pursue underutilized and underexplored targets (ideally in Texas and surrounding states) with previously known hydrocarbon production potential, so that those targets can be rediscovered and/or rehabilitated within the network of relationships the company has developed with operating partners and key industry experts over the years.
The recent acquisition of the J.B. Tubb North and South 40 Leases in Ward County, TX (both 37.5% WI with a 28.125% NRI), marked MNVN’s breakout into being a serious sector up and comer. The company’s position in the North 40 acres of the J.B. Tubb Leasehold Estate/Amoco Crawar field includes three well heads and three bores (two currently producing wells), as well as ancillary logistical hardware, in addition to the oil and gas interests. The company also possesses pro rata revenue and reserves from surface down to 8.5k feet, making this a stable, fundamental support column in the Permian for MNVN’s overall regional strategy.
Mondial’s position in the Highland Production Company (Crawar #2) well-bore in the J.B. Tubb South 40 comes with depth of ownership from 3.7k to 3.9k and 4.7k to 4.9k feet. The participation agreement for the Crawar #2 also grants MNVN the option to fund $1.575M on a best effort basis for capital expenditures related to drilling an additional well on the J.B. Tubb South 40 targeting the Ellenburger Formation. This Ellenburger target would be aggressed on a turnkey, co-ownership basis with Success Oil, Inc., who would act as operator of the projected 8.3k foot deep well and this move would also set MNVN up very nicely in the play for taking advantage of its option to participate in yet further well drilling on the property.
The Crawar #2 yielded great results early into workover and remediation in the Glorieta Formation, leading to the announcement back in September alongside partner EGPI Firecreek, Inc. (OTCQB: EFIR), and the company’s on ground operator, Success Oil, that the initial average of around 90 to 115 bbls per day and 250 to 374 MCF gave strong indications of the 75k bbl/100k MCF recovery potential of this formations pay zone (according to Success Oil). This success was a great triumph for the company’s analytical modeling and know how, with the behind pipe production potential forecast roundly confirmed in the target zone depth around 3.9k feet. The month of September saw some 1.7k bbls and over 8M cubic feet of gas produced from the workover effort, proving the Glorieta target output to be even better than was anticipated.
The company yesterday announced the signing of a definitive agreement between EFIR and CUBO Energy, PLC, for whom MVNV is assignee, to put together a strategic co-development plan to conduct a multiple well drilling program into the West Central Texas, Barnett Formation. The goal is to run one or two horizontal wells (or several vertical) down into the 5.2k to 5.5k foot range after drumming up the necessary data for groundwork through a comprehensive 3D seismic study on the 240-acre Boyette property in Shackelford County. The potential in Barnett Shale, combined with the co-partner approach should yield some excellent results and MNVN is seriously pumped after their success in the Glorieta Formation.
This move by MNVN will see the company making a $175k investment in the Boyette property and acquiring a 50% WI thereby, with the sum going largely towards the 3D seismic and other preparatory work. This is a solid move by MNVN to advance their oil lease acquisition strategy in general, and the company has already advanced a deposit in earnestness to get started. Shrewd moves really, as the company will gain access to huge shareholder upside via the working interest, while minimizing overall financial exposure easily. The added benefit being that the company can bring in its considerable oil and gas management, as well as engineering and advisory facilitators from MNVN’s deep bench of hitters, to headhunt specific problems and provide vital over watch capabilities.
Rehabilitating oilfields for maximized throughput in defined plays and carrying a healthy mix of interests is a sound strategy. The Barnet Horizontal Well program estimates puts the price tag per horizontal well at around $750k, making the co-development even more reasonable, and stabilized output for a two well program was suggested as being in the 80 to 100 BOPD range.
Mondial Ventures is worth looking at because of their obvious ability to read the sector and locate those oil and gas acquisitions, resource plays, and other opportunities which will best translate into bottom line returns. The company’s emerging footprint in Texas and outlying areas is well-served by recent executions like the Crawar #2 and this well is slated to be stabilized and put on pump, with a potential fracking at a future date to increase potential already under consideration.
For more information on Mondial Ventures, please visit www.MondialVentures.com
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