Cavu plans to capitalize on the 900-acre project by re-entry of the existing wells, utilizing new technology, chemically treating and re-stimulate the wells.
The project originally was a water flood and produced approximately two million barrels of oil over a 20-year period.
The project was shut in for about seven years and with limited reworking and stimulation of the wells until JHF acquired the project in 2009.
JHF has re-entered four wells and cleared the locations for 20 more.
Cavu plans to re-equip the project and put back into production approximately 40 of the identified oil and gas producing wells.
With the recent work, the field is currently producing four to five barrels of oil a day with anticipated production being in excess of 100 barrels a day.
Cavu has targeted the zones including the Bartlesville Sand and Wayside Sand for oil, the Mulky Coal Bed, Roe Coal Bed and Mississippi Lime for gas.
The company plans to begin the second week of June to install new equipment, storage facilities, well re-entry, well stimulation, and complete environmental audits and initiate an action plan utilizing historical data from engineers as well as targeting new drilling sites.
The JHF property Cavu is acquiring has five zones targeted that could potentially produce both gas and oil.
The wells in the area have historically ranged from 600ft to 1,200ft and these shallow wells will allow for a rapid development program, the company said.
Cavu will install storage and control systems and use the existing transmission lines owned by Envirotek Fuel Systems for its gas production and delivery.
