RESULTS THAT MATTER
Once a well is completed, whether it produces oil, gas or both, that production has to be stabilized. Allowing a well to roar uncontrolled for a quick payday can damage it and cause it to prematurely turn to water or create other production problems. While the 100 bopd looks good on paper, it looks terrible in 3 months when the well is making 10 bopd and 200 bwpd. Some reservoirs have water under the oil and pulling the oil off too fast allows to water to cone upwards toward the well and once that happens, it generally spells the end of the well or additional costs.
We are in the business for the long haul which means we will depend on oil and gas sales to grow our company, not stock issuances and hyperbole. A good well taken care of properly will produce revenues for years. South Plains Petroleum, Inc. operates each property with its future in mind.