Multi-Basin CAPEX & Well Summary
| Operational Region | New Drills | Recompletions / Reactivations | Facility & Midstream | Approx. CAPEX Invested |
|---|---|---|---|---|
| Permian Basin (Pecos Co.) | 11 Vertical Infill Wells | 5 Recompletions / Refracs | 3 Tank Batteries & SWD Upgrades | ~$5.20 Million |
| East Texas Basin | 4 Deep Vertical Wells | 2 Multistage Hydraulic Fracs | Enbridge 10" Pipeline Tie-in | ~$9.50 Million |
| Illinois Basin (Alpha Oil) | 2–6 Vertical Wells | 42 Shut-in Well Reactivations | Country Mark Refinery Hub | $5.00M – $10.00M |
| Total Portfolio Scope | 17–21 New Drills | 52 Well Interventions | Integrated Facilities & Lines | ~$19.7M – $24.7M |
Permian Basin (Pecos County)
16 Well Interventions (~$5.2M CAPEX)
Flamingo Permian LLC holds 3,970 gross acres HBP across Leon Valley Field (LVF) and Middle Permian Field (MPF):
- 6 Executed New Drills (~$2.70M CAPEX): MPF (Neal 14 #6, #7, #8, Reed 13 #5, #6) and LVF (State Univ A&D #26A). Average D&C: ~$450k/well.
- 5 Recompletions / Refracs (~$200k CAPEX): MPF (Reed B 15 #6, #7) and LVF (State Univ A&D #11, #16, #18).
- 5 Staged Infill Locations (~$2.25M CAPEX): Neal 14 #9, Reed B 15 #10, Reed A 23 #3, Reed B 15 #11, Reed A 23 #4.
- Facility & SWD Upgrades (~$80k CAPEX): New 2,000 bbl tank batteries and dual 2,000 bwpd disposal wells.
East Texas Basin Development
Deep Stacked Pay (~$9.5M CAPEX)
Flamingo Operating controls 10,000+ acres across Madison, Grimes, and Leon Counties targeting Buda, Georgetown, Edwards, and Glenrose formations:
- Flagship Deep Wells (11,500+ ft TD): Jefe Chambless #1 (676 acres), Jefa Wells #1 (295 acres), El Dorado #1 & #2 (288 acres), Foster #1 (229 acres).
- High-Pressure Multistage Fracs: Advanced completions utilizing Weatherford fleets, resin-coated proppants, and FracPro modeling (~$1.8M–$2.5M D&C per well).
- 10" Enbridge Gathering Line: Direct pipeline interconnect with 100 MMcf/d capacity servicing Madisonville field assets.
East Texas Completion Execution
Technical & Midstream Capital
Strategic capital allocation in East Texas focuses on high-yield comingled production and midstream independence:
- Comingled Formations: Multi-stage hydraulic fracturing across Buda, Georgetown, Edwards, and Glenrose (A–G) reservoirs.
- Rig Efficiency: Drilled 11,500+ ft total depth in 21–23 days per wellhead, maintaining strict cost controls.
- Zero Trucking Emissions: Direct tie-in to Enbridge 10" line eliminates fluid trucking expenses and secures long-term natural gas sales.
Illinois Basin (Alpha Oil Portfolio)
50 Well Assets ($5.0M – $10.0M Staged)
Structured production acceleration play across Kentucky, Indiana, and Illinois targeting shallow high-gravity crude (1,000–5,000 ft):
- 42 Shut-in Well Reactivations: $300k–$600k CAPEX allocation ($8k–$14k per well; 10–45 bbl/day initial response within 1–4 weeks).
- New Vertical Infill Wells: 2 to 6 wells ($200k–$250k each) with optional hydraulic fracking ($100k–$200k per treatment).
- Refinery Offtake Contract: Country Mark Refinery contract (WTI -$3.75, no volume cap, monthly payouts on 10th).
- Ultra-Low Break-Even: Operating break-even at $12–$15/bbl WTI provides extreme downside protection.
Intervention Categorization
Reactivations (42 Wells)
CAPEX: $5k–$25k / well
Pulling rods/tubing, acidizing perforations, replacing downhole pumps, and reconnecting tank flowlines. Timeline: 1–4 weeks to first oil.
Recompletions (5 Wells)
CAPEX: $30k–$60k / well
Opening behind-pipe pay in Tansill Dolomite, Yates B/C sands, and Dewey Lake formations with targeted acid/frac treatments.
New Drills (17–21 Wells)
CAPEX: $450k–$2.5M / well
Shallow Permian infill drills (3,500 ft) and deep East Texas vertical wells (11,600 ft TD) with multistage hydraulic completions.
Capital Efficiency Metrics
Low Cost Operator Margin
High Working Interest (~100% WI) and Net Revenue Interest (~75–85% NRI) ensure maximum cash flow retention:
Lease Operating Expenses (LOE) maintained at $7.84–$10.42/bbl in Permian Basin and $10.42–$12.00/bbl in Illinois Basin.
Downside Price Resilience
Operational break-even of $12–$15 WTI across all producing fields provides resilience against oil price volatility.
Capital payout per infill well achieved within 11–16 months under current commodity pricing ($80–$96/bbl WTI).