These are exciting days for Molori Energy Inc (TSX: V.MOL, OTCQB: MOLOF, Forum). After buying into some prospective leases in the Texas Panhandle, MOL has steadily and successfully built up production and reserves primarily by working over or rehabilitating older wells. This was a solid business in itself, but then came the discovery of real blue-sky potential: the Red Cave formation.
Red Cave is a geological formation situated above the conventional oil reservoirs in which the Company is currently drilling. Reviewing older geological data established that this formation is amenable to modern “fracking” technology. The significance of this is that Red Cave has the potential to deliver producing wells at pumping rates that dwarf Molori’s conventional operations – with (potentially) 600 drilling locations.
Testing the Red Cave has already commenced, and on September 27, 2017, success was announced with Molori’s M1 well, produced at an initial rate of 20 – 25 barrels of oil per day, without even factoring in the gas content.
That’s big news, but not the biggest recent news. Just in the past two weeks, Molori has made two blockbuster announcements. First, on October 17, 2017; Molori announced a new deal with its operating partner, Ponderosa Energy LLC. Under the terms of the deal, MOL is increasing its working interest in these Panhandle leases from 25% to 50%.
Then this week, Molori announced a deal to more than triple its Red Cave acreage. Along with this, the Company has announced a major, new Red Cave drilling program.
Molori’s CEO, Joel Dumaresq, has once again taken time out of his schedule to check in with the Stockhouse audience. We sat down with MOL’s head of operations to get an update on these three pieces of news.
FULL DISCLOSURE: Molori Energy Inc. is a paid client of Stockhouse Publishing.