INVEST IN OIL WELLS
QUESTIONS AND ANSWERS
WITH A PROFIT FOR 20 YEARS
Maxxwell Production is the only company performing abrasive slot perforation technology in the Americas. Our team has extensive practical experience since 2011 in the restoration of marginal oil and gas wells with positive results.
What primarily interests a person who invests into this business ?
1 - Profit,
2 - Amount of investment and payback period,
3 - Risks
We have tried to answer all questions as detailed as possible.
What is the minimum investment for a project ?
Minimum project implies investments in recompletion 4-5 oil/gas low-productive wells at least, it's about 1 million dollars. Development of one well is associated with a very huge risk (up to 50%), when the restoration of 4-5 wells gives only 14% risks and 3-4 wells will in any case pay back the invested funds and bring profit, even if one well turns out to be inoperative. And if the project is insured in advance, then the risks are reduced to zero.
Here you can see all the approximate costs (pages 43-49): Investment Project Sample
What is the profit from minimum project ?
When the invested funds are returned to the investor ?
The amount of oil recovered will depend on many factors such as reservoir geology, well condition, well depth, and other factors.
The data collected after the introduction of our technology confirmed that our production method significantly increases oil recovery.
Consider an example of a minimal project: 4 low-productive oil wells.
The average estimation of oil increase for four producing wells is 180 bpd per day, or 64,800 bpd per year.
The current market value of oil (WTI) is $86.53 per barrel.
We can assume if the cost of the land and four wells is $300,000 and recovery expenses are $800,000.
Total expenses the land and recovery are $1,100,000.
First year revenue is $5,607,144;
Profit after expenses for the purchase, recovery and annual maintenance of wells is approximately $ 2,825,000;
Return on investment is 5-6 months. Next profit $ 5,607,144.
Let’s assume that production declines by 5% per year compared to the total oil production in the next year.
Next year's income will be $ 5,326,786.
Why should I invest in old wells ?
For reasons of profitability and risks reduction.
Drilling and construction of new wells is incomparably expensive. In addition, according to statistics, only 70% of new exploration wells fall into the oil horizon, the rest do not give anything.
The old low-productive wells is already confirm that they have reserves. A large number of marginal wells have been shut down and abandoned over the past 10 years, and lost profits from oil sales amounted to about $4 billion. But many of them can still be restored and the productive inflow can be increased.
Conventional production technologies make it possible to extract about 50%-60% of all hydrocarbon reserves, the rest of the undeveloped reserves remain in the bowels. Thus, it is assumed that many billions of barrels of oil can still be recovered.
SPT allows extract up to 90-95% of available reserves, and if the production of hydrocarbons is carried out at a rate of extraction equal to the rate of replenishment, then the field can be exploited for a very long time, perhaps up to hundred years.
Each closed field always has undeveloped reserves of the product. Oil and natural gas are renewable natural resources. Wells that have been closed for one, two, five years or more may show the presence of oil on
subsequent geological and geophysical analysis. There are enough such examples in the world when a mothballed deposit was revived with even better performance. The influx of oil occurs due to the redistribution of pressure in the reservoirs and due to this, oil is pulled up. The fields are formed due to the vertical migration of oil and gas fluids through faults in the crystalline basement and sedimentary cover. Oil fields are a constantly developing object fed by hydrocarbons from the depths of the subsoil. At the same time, oil reserves can be restored not in millennia, but in several years. With the resumption of production, flow rates can increase significantly.
Our geophysicists very carefully select wells for subsequent recompletion by SPT, their excellent work is confirmed by our contracting partners such as Chevron, Baker Hughes, Schlumberger, Halliburton and other.
The wells are selected to have no water cuts or loose sands, have a good production history, operate without accidents, and have 15-20 years of remaining oil reserves with a daily inflow of 25-30 barrels per day.
Why should I invest exactly in SPT well recompletion ?
Indeed, there are too many methods of well recovery: well cleaning, underground pump replacement, hot steam treatment, chemical treatment, another hydraulic fracturing (until the well is completely flooded) and so on. Only stimulation methods more than 25 ! Many will say that water jet methods has also been used everywhere for a long time. It seems that any instability causes an additional influx.
Nothing like this ! First, remember the main rules of Geological Mechanics for opening (or re-opening) a productive formation. How many modern methods meet these requirements ? Deformation of casing, destruction of cement sheath (gun perforation, punching), and formation of behind-the-casing flows (plasma-pulse) , clogging of productive layer and formation of scale boundary , mixing of productive and unproductive
and water and gas reservoirs by hydraulic fracturing into one mixture, and as a result - use of natural resources by 50% maximum, and in some cases causing harm to nature by chemical treatments.
Yes, there are many water jet methods: coil-tubing let-perforation, any other water jet methods. How beautiful everything looks in animated pictures ! And why do we never see a real photograph from inside the well, which in reality remains after the so-called "wetting" of the rock with water jets without an abrasive (because the abrasive will instantly deactivate water nozzles and metal structures). Unfortunately, after these water-jets methods an alluvial cavity is formed in the annulus up to one foot deep, no matter how long we use water jets. This is not only due to the lack of an abrasive (abrasive or garnet sand), but also because in a pinpoint water perforation, the reverse jet will always obstruct the direct jet and will never give depth. Of course, no one is talking about any stress conditions around the well (which already at a depth of 1000 feet reach a pressure of 1000 PSI).
Everything is simple. Depth requires rectilinear movement of water jets along the wellbore. In this case, the forward jet does not intervene with the back jet of rock and the slurry with abrasive is washed to the surface by a continuous stream of water, cutting deeper and deeper (a gap is formed up to 3-5 feet deep). In this case, of course, the ordered grain is unloaded. But the movement of water jets must occur at the level of cutting inside the well, cutting will not work by tubing or coil tubing from the surface of the earth (frequency resonance). No need to "reinvent the wheel" again, just need turn to the forgotten brilliant American inventors of the 19th century and their patents. They already invented everything before us and they had a more realistic approach. SPT increases the flow of oil or gas dozens of times, increases the recoverability up to 95% and extends the life of the well for another 15-20 years. Need to be more careful with Natural Resources, and if a well already exists, then use its resources at 100% and not spoil Nature with chemistry.
If I invest money in this project, can I get a citizenship in the United States ?
Yes, investments in Maxxwell Production's project provide an opportunity to receive "Green Card" - permanent resident visa for the United States for investors and their families.
All transactions are processed through the American Immigration Lawyer. We bring to your attention a video interview with the Immigration Company:
"Today we will talk about how you can get an EB-5 visa by investing money in an existing business. And today we will talk with Anatoly, director of an oil service company.
To begin with, let me remind you the rules for obtaining an EB-5 visa. This visa gives you permanent resident status in the United States.
1. What do you need to get an EB-5 visa ?
- Investment of $ 800 thousand dollars in the US economy (create your own business or invest in an existing business)
- Create 10 jobs
- Show the legality of the money you are going to invest.
2. And now let's talk about how an oil production project is eligible for an EB-5 visa. Anatoly, please tell us about your company.
Maxxwell Production - enhance oil/gas recovery (EOR) with slot perforation technology (SPT) professional service company. SPT - cutting of continued deep slots along the wellbore. Cutting is done by special SPT tool through casing, cement into the productive layer to a depth 3 - 5 ft. In this case, the circular stress conditions are redistributed to the ends of the slots, unloading the near wellbore zone, increasing permeability, positive reservoir properties, and accordingly the productive inflow.
1. Unloading circular compressive stress in the near wellbore zone (for increases of permeability/porosity, and accordingly increasing the productive inflow. Hydro-slotting perforation is the only method, supposed to unload annular compressive stress conditions around the wellbore.
2. Opening a large casing’s area and creation of a large drainage penetration’s zone in the productive formation (for good hydrodynamic connection well with the productive formation).
SPT is the only method, supposed to unload annular compressive stress conditions around the wellbore. - SPT is ecologically safe, environmentally friendly (used water and sand). - other benefits: http://www.maxxwell.us/benefits.
Benefits of Slotting Perforation Technology (SPT):
● ecologically safe, environmentally friendly (water and sand) - very long duration of effect (up to 15-20 years)
● opportunity of using near the water reservoirs (impossible to make a hydraulic fracturing)
● the process is controlled (length and depth of slots)
● the process takes place within the productive formation, and not affects other layer sand zones
● large opening area, penetration depth is up to 5 feet
● no detonation impact, no casing damage, no cement cracks, no clog-up the formation in borders
● unloading the tangential circle stress conditions in the near wellbore zone up to 50-100%
● increases the collecting properties in the near wellbore zone
● increase of the drainage volume characteristics in more than 6 times
● increase of permeability and accordingly increase the useful inflow up to 30-50% - opportunity to use in any wells and in any formations
- Do you have certificates? - Yes there is. People working for us must have such and such certificates (list) - The tool has an API number (American Petroleum Institute).
3. Consider how this project satisfies the requirements of the EB-5 visa for job creation.
- We organize another service point, an office, supply equipment, hire 10 people, train a team
- This project is interesting not only for those wishing to acquire a visa, but simply for investment.
- That is, this project satisfies the condition of the EB-5 visa for hiring 10 people.
4. And what can be done for 800 thousand dollars specifically in your project?
- it is possible to master 3-4 wells + additionally organize a service office. Each well with purchase and development costs approximately about $ 200 thousand dollars. We choose wells with oil or gas reserves that will work for 15-20 years.
5. Income and risks of the investor. If an investor invests in your project, then, in addition to receiving a green card, what profit will he receive ?
- I can say that it will earn a lot.
Approximate profit from one well is from 600 thousand to 1 million dollars per year. Profit depends on the amount of oil produced per day. In terms of interest, if the investor is serious, then we discuss this specifically with the investor.
- and how long can you make a profit from wells?
- 15-20 years
Maybe the well will not work?
- No, it can not. We do a geological and geophysical analysis before proceeding with the development of a well. We make only those wells that meet our requirements for oil production.
SPT tool allows you to extract oil from a well up to 90-95%.
6. Well, we can summarize. The oil business is definitely a profitable investment. We have a return on investment and we are satisfied on all counts for obtaining an EB-5 visa: investing money in the US economy and creating 10 jobs.
Thank you, Anatoly, for the interesting detailed story about the project! Friends, if you have any questions, please contact us. We will help you arrange all the documents correctly for the EB-5 Visa.
I don’t know about this issue, maybe it’s not necessary to talk about it in an interview:
7. I will answer a question that we are often asked.
- Is it possible to invest not the whole amount at first ?
At the time of filing the petition, you can partially invest the amount, according to the business plan, for example, 300 thousand, and then pay the rest of the amount, or you can immediately pay the full amount.
But we recommend our clients to invest the full amount before filing a petition. This significantly increases the chances of success, the second - reduces the number of questions in the request for additional documents from the immigration service. And less than the third - there will be a term for consideration of the petition.
I will add ! We own a unique patented tool for vertical and horizontal wells, which works under pressure using working fluid and sand. Our method differs from all currently existing methods of well stimulation or restoration, for example, jet perforation, abrasive jetting, coil tubing or mechanical slot cutting, in that it allows not only dot perforation with a 25 cm deep cavity, but also make longitudinal cuts with a depth of up to 1.5 meters. This means that the flow of oil will be significantly increased.
All other methods of reservoir opening are pinpoint perforation. It’s only in their advertising that everything is good and beautiful, but in reality a cavern 25 cm deep is being washed in. Therefore, they don’t have any real photos anywhere of what is actually happening inside the well.
We have such photographs taken with Halliburton equipment.