Project Details

Oil and Gas Lease on Federal and State Lands (See Maps & Plats)

16 feet to 22 feet of oil sands are at 450 feet to 500 feet below the surface. This is an unusual occurrence at such a shallow depth.

188 Oil well locations to Drill 9 wells have been drilled and are now producing into the common Tank Battery. (click on pictures in left column for larger images) 

Average production is estimated at 10 barrels of Oil Per day per well.
The production will range from 8 barrels per day to 20 barrels per day per well.

The current oil price is in the mid $80s.
(see http://hollyfrontier.com/crude-oil-prices/ for daily price) Our price is the NM Sour Trucked adj. B. The July 20th 2011 price is $91.80 per barrel.

Units Available to Purchase:

Units available for purchase are Overriding Royalty Interest (ORRI). Overriding Royalty Interest (ORRI) is free of development and monthly operating cost. You have no costs beyond purchasing ownership @$112,000 per unit. The Working Interest Owners (not You) pay all development and operating expense.

Your interest income is paid directly to you by the purchasing refinery.  We sell your oil to the Navajo Refinery in Artesia, New Mexico, which is only 8 miles from our project. (see New Mexico map attached).  Your ownership interest purchased will be recorded in the Eddy County Court House Deed Records in Carlsbad, NM. 

 


See Map

Based on our recent success in the Seven Rivers Oil and Gas formation in Eddy County, New Mexico, we are expanding our project. We have gathered geological information, and land ownership records on surrounding acreage. We have extensive engineering studies of the lands of interest. These studies have been confirmed by our recent development drilling. 

We are in the process of obtaining production rights on up to 1500 additional acres.

This is an opportunity for investors to participate in this growing project.


The Investment:

The following assumptions are based on our current experience and engineers' studies of the Seven Rivers formation, recommending a water flood project.

1.) Acreage cost @ $700 per acre

2.) Each 160 acre block (enough acreage for 16 wells) = cost of $112,000

3.) An $112,000 Investment earns - 1% Overriding Royalty ownership in the 160 acre block.

Projected earnings after development:

16 wells @ 10 Barrels production per day each = 160 barrels per day. At the current oil price of $80 per barrel, 160 barrels per day = 

$46,080 income per year for each 1% ORRI.

($112,000 Investment earning $46,080 per year = 40% return on investment)


Tarco Energy, LC

1.) Has the equipment necessary to drill and equip the wells in this new expansion

2.) Has full time drillers and foreman on location

3.) Has a local Petroleum Engineer, with 30 years experience, available for office and field service.


Based on our 30 years of experience in this oil province, we believe this to be a solid investment.

As an experienced investor you understand that Oil prices can and do change daily. No one knows the future price of Oil and Gas, even though some project a higher world demand based on the emerging economies of India and China.

Production rates will vary from well to well. The engineers feel their projections are conservative.

Contact Us