Has anyone ever wrote or been a part of a real business plan?

[Ruffdaddy]

Strych i dont know about his market, but you would be surprised at what some of the smaller guys have a need for service wise...hell even some of the larger guys.

Me and a few coworkers talked about buying a few MWD kits and doing jobs for people that have a need...even if its just a test well. Throw in some servicing and repair work and it would probably sustain at a much higher compensation than we make now.

People dont want to hang onto a full time salary, so on demand is where its at.

EDIT: also you may want to change that land valuation to reflect 45/bbl, and with pad sites drilling like 10 wells from 1 pad, it may amortize that land over several wells. I havent seen the data to know if this was the case.

[zachary]

I truly appreciate the detailed responses.

Strych, the one huge difference i think in our thought processes is the size. I work in Shreveport, have my whole career. T Here are several geologist who run independent shops, similar to what i am looking to do and they do the same things i want to do, just work different areas. Not saying you but one thing people can NOT wrap their heads around are the differences in major, large independents, and the smaller guys. Nothing we do is similar to theirs. We do fringe exploration where you can go get 100-200$ per acre lease with a 1/5 lease, set up 60-120 acre units and drill the wells as lease or unit wells. Projects where we are offsetting 50,000 to 80,000 barrels wells with 100,000 - 120,000 barrels well. Or using new technologies and offsetting old gas wells that made 700-800 mcf/d with new fracked wells that will make 1,000-1,500 mcfd. DO it every day.

There is such a world of difference between big guys and us, people almost can not fathom it. We do not deal with 2 million dollars in leasing and land, ever! We can get turn key drilling bids to typical cotton valley depth(9,000-11,000) for 300-500k$. Completed wells around double that most of the time.

Just a few examples of pricing and wells we have recently drilled at my current shop.

Mississippi - drilled a 2.2 million dollar well to depth of 12500 feet. That number is everything from land acquisitions to completed pipeline flowing well well. Well is flowing 400+ bopd.

Louisiana - recompleted a 400,000$ hosston(8,200 feet) well drilled and completed a gas well which was flowing at 1,500 mcf/d.

Texas- drilled some $970,000 Rodessa wells(7,500 feet) and completed them in the 80-110 bo per day range.

Being a small independent shop it just takes one deal and the right lease / override situation to make life a whole lot easier. Must be successful though.

With our backers the plan would be to sell deals opened ended(unleased) and also put together leased packages and go sell 1/3 for 1/4 and keep 25% backin after payout. Some slightly larger independents talking 10-20 employees actually prefer purchasing open ended deals so they can lease and make money off their own leasing when they promote these deals.

if you ever have questions about the smaller side of the business i would enjoy going back and forth with you about it.

The people i am targeting to fund are the locals in their 50-70's who have had not just made money but wealth in the business over the last 30 years who are now at an age where they believe in the business but do not want to hassle with running their own shops anymore.



paycheck to paycheck i guess is a relative term.....i am still young and don't own an island yet!

[Stephen]

What do you want to start? ($5 says bar or some sort of food establishment, amirite?) Nothing personal, but every investor and/or corporate refugee I talk to daily that wants to start their own business wants this.

If someone does plan on starting one, quadruple whatever operating capital you think you may need..