GOLD LAKE OIL, LLC
Craig W. Thompson owner
3757 Trinity Ln. 512 914-2082
Abilene, Texas 79602 firstname.lastname@example.org
GOLD LAKE OIL PROJECT
CRAIG W. THOMPSON
I believe I can qualify oil drilling prospects using Geochemical, as well as other conventional exploration techniques such that our group can drill prospects and average returns of 10 to 15 to one on each prospect drilled or returns averaging 1,300%. There are economies of scale at work which will mean that the cost to qualify deals for an entire project will be around 5 to 10% of costs with perhaps our costs on portions of deals rising to up to 30%.
My methods for qualifying drilling prospects involve an initial survey with radiometrics. Primarily this is a cost issue as I can qualify prospects rather inexpensively with radiometrics. Essentially, the cost is my time plus minimal equipment fees. There are some cheap Tellurics surveys being done for as little as $1,100. I like to follow that up with an earphone Tellurics survey, which can be done for $4,000.
I think one could add soil sampling to this mix, perhaps iodine or microbes.
I like satellite imagery, especially for prospecting, looking further afield than the defined target.
The more tools one uses the better results one will get.
Keeping costs down is also the secret to success in this type work.
GOLD LAKE OIL PROJECT
I propose to create a group, or a Limited Partnership to fund a series of oil drilling projects.
I have been qualifying oil and gas prospects using Geochemical techniques (near surface detection) for 32 years. I have spent 8,000 hours in the field qualifying oil and gas prospects, primarily conducting radiometric surveys. This is measuring gamma radiation on the ground and making inferences about the presence of an oil reservoir at depth. I am associated with two companies which conduct Tellurics Surveys. Tellurics (aka Magnitotellurics) is a technique for sensing telluric waves passing through depths in the earth and predicting the presence of recoverable hydrocarbons.
I believe that for a cost of 1-10% of the project cost of a moderate depth drilling deal (more if only a part of the deal is monetized by the group), I can identify qualified prospects which will, on average, return 10 to 1 on their money or more. I think I can identify deals that will be successful 1 out of 3 times. The successes will be in the nature of 100 to 1 return on one’s money; 50 to 1 return on one’s money; or sometimes a more modest 10 or 20 to 1 return on one’s money.
I raise commitments for $30,000 to $5,000,000 and initial cash of at least $15,000 to support this work.
There are additional costs of completions of wells, drilling offset wells, leases, etc. that would have to be borne by the partner or taken out of his initial contribution.
The larger the money total the better one’s bargaining position and staying power will be.
I envision an inner group which will fund certain costs. This could include leases, operations or financial surety.
The larger group would be less burdened by certain costs.
One will be always raising money and looking for partners in a business like this but this initial group would be in a position to have first access to desirable deals which may allow only a limited participation and will enjoy such benefits over a long period of growth, hopefully.
My proposal for the Limited Partnership is as follows:
I receive a 15% back-in after payout on each successful project.
I receive 3% cash on each prospect drilled.
I receive a 5% cash fee on all geochemical testing.
I am paid my normal rates for all radiometrics prospecting.
I am remunerated my expenses and a modest fee for my time.
I estimate administrative costs (legal costs to create an entity, bookeeping, and expenses associated with raising money) to be 3% to 5%.
I feel that the best way is for our group is to qualify and participate with other companies in drilling prospects.
We might develop our own prospects but in order to spread the risk around the focus should be on taking a piece of several deals.
We will have to pay a promotion to do this but I feel that paying a promotion is not a burden considering the upside potential and our ability to mitigate the risks.
Partners are obligated to provide funds for drilling and completion costs up front. Failure to do so will result in a reduction in interest in drilling wells.
My idea was in the beginning partners would put up 37.5% of the monies to fund the project and the balance as wells are proposed.
One could get out anytime one wants with any funds not spent being refunded.
Anecdotal Geochem Local
I would like to impress upon you how successful people around here have been using geochemical prospecting. A lot of people don’t talk about it so much once they are successful. There are several reasons for this, but maybe that’s a topic for another time.
All of the really successful people have used it or are using it.
Most of the discoveries are related to it.
My buddy, Steve, the Tellurics guy, worked for the guy who has the lion’s share of the Bakken shale in North Dakota, Continental Resources, Harold Ham.
Abilene, Texas has been a hotbed of this kind of work.
The Jones Brothers (Van Operating) have been fabulously successful around here and have been heavy into geochem for quite awhile.
Menard County has been an area where a lot of big fields have been found with geochem.
Jack Frizzell (Enrich Oil) has been wildly successful and has done a lot.
MobilExxon, not that long ago, was running ads on TV touting their R3 technology (Tellurics) and saying how fabulously successful they have been using it.
All the majors are heavy into it.
Greg King (Salida Exploration) has found a lot of oil around Abilene and is big into it.
Gunn Oil in Wichita Falls has been fabulously successful and are totally into it.
Sun Oil was the grandaddy. They found tons of large fields with it. They mainly used Douglas Radiation (Radiometrics) as their consultant. A guy I know has their database.
Cactus Schroeder (Chisholm Exploration) has been very successful and reportedly will not drill a well without it.
William Sojourner III (Sojourner Drilling) is big into this and has done extremely well with it. His grandfather had many successes using radiometrics.
It just boggles the mind, really.
It just goes on and on like that.
How to read Geochem Papers
The best way to educate oneself about geochemical prospecting is to scan a number of scientific papers. Read what you understand, especially the synopsis in the beginning. Skip over the parts that get too technical. Pretty soon you will have a good working knowledge.
Google “Radiometrics Oil Exploration”
Google “Tellurics Oil Exploration”
Links to Drive by Google Folders
The first two are 1 and 2 (more details) for people who wish to understand this topic and it's history while aligning with the Vision of Mr. C. T. Mukpo.
The last one is for regular business types who do not follow the Spiritual aspect of this work.
Gold Lake Oil
Gold Lake Oil New
Gold Lake Oil 2