How Often Does Midwest Find Oil?

The predominant concern by investors contemplating an investment in the oil and gas industry is “dry holes.”  “Dry Holes” are defined as any well that does not produce oil or gas in commercial quantities. Often, a well may flow water, gas, or oil, but not in amounts large enough to justify the costs to complete the well for production.

Chance of Success is estimated from historical data and is the number of successful wells completed as producers, divided by the total number of wells drilled.

 

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Sources: American Petroleum Institute (“API”) and Nontechnical Guide to Petroleum Geology, Exploration, Drilling & Production by Norman J. Hyne, Ph.D.
All info as of 12/31/2014
1)  Midwest will limit Wildcat wells to 10% of any drilling package.
2)  66 wells by Midwest and 12 wells by Herrick at CountryMark. One of those twelve was a dry hole.
3)  Industry percentages include gas wells, which typically are a lower risk to drill due to larger production zones.