Redhawk Resources Management III LLC has fulfilled its Redhawk Resources - Fund III LP.
The fund is located in the Permian Basin just north of Fort Stockton, Texas. The 3800-acre project consists of the purchase of 70 conventional vertical bore wells originally developed and drilled by Gulf Oil Corp. In conjunction with StableRock Energy, the operating entity, the partnership plans to enhance and develop the project into a water flood over the next 24 months.
According to a press release, the goal is to re-work approximately 20 of the existing wells to pump off a significant amount of primary oil still in place. Forty wells are to be converted to injection sites. Two to five water flood stations will be developed, and several new wells will be drilled to enhance production and complete an adequate geometric pattern maximizing flooding capability.
In a released statement, it was said that Jack Nichols, executive chairman of Redhawk Resources Management III LLC and managing partner of Redhawk Investment Group LLC, was initially attracted to the project because, at 2.5 million barrels of oil produced, only 4% of the oil in place had been extracted through primary production.