RFP owns and operates 90+ wells in the Cisco area and controls the entire gathering system (100+ miles) and the only active tap for 40 miles. A number of wells have been shut-in because of their high nitrogen content and extraction of nitrogen from these wells could add 2 to 3 MMCFGPD and 100 BOPD to RFP’s current area production of 750 to 1,500MCFGPD. A nitrogen stripping plant currently tied to an inactive tap will be relocated to the active one and the inactive wells reworked and brought back on-line. RFP has the opportunity to procure adjacent acreage with Nitrogen and Helium potential in the future.
28 BCF of gas and 2+ MMbbls of oil has been produced from the Cisco area. Harley Dome, to the immediate west, has produced 42,393 MCF ($12.6M) of helium from the Entrada Sandstone. RFP has several existing proprietary seismic lines, numerous gas samples with Helium analysis, proprietary aeromagnetics and interpretation, and several surface geochemical surveys for hydrocarbons and helium that supports the strong potential for the area. A 110mi seismic shoot is currently in process. Six wells are being permitted to test the Entrada Sandstone in the Cisco Springs area: two locations for oil adjacent to existing producers, and four for Helium. The main Williams interstate line through the Cisco area is at only 25% of capacity,
RFP is offering a 20% interest share of its 20% carried working interest in the joint project with Starfox Helium Inc. Leases are 80% Net Revenue Interest in the Cisco Springs area and 75% Net Revenue Interest in the Cisco Dome area. The cost to fix the tap facility, move the nitrogen plant, and re-work of the shut-in wells, through to the production of oil and natural gas and development of Helium in the Entrada reservoir is fully funded by RFP’s partners.