Welcome: The Fossil Oil Company Blog!
For the past several years, Fossil Oil Company, LLC and its affiliate, Fossil Oil Operating, LLC have been actively acquiring mineral leases, drilling and positioning itself to provide high quality oil and gas investment opportunities for high net worth private participants, industry, institutional and our existing investor base involving significant reserves of oil and natural gas. In 2013, Fossil Oil will continue concentrating on drilling oil wells especially as the price of oil continues to stabilized around $90 per barrel.
The newest joint venture, the Fossil-McCall Creek Oil Well JV-I will drill a lower risk field extension, i.e., proven undeveloped (PUD) well called the #1 Travis (480 acres) in Franklin County, Mississippi. This well will be drilled to 10,800′ to test the lower Tuscaloosa A & B sands. A successful #1 Travis well will prove up 5-6 additional offsetting locations to drain an estimated 3,000,000 barrels of recoverable oil. Energy Drilling Company of Natchez, MS will have Rig #3 on location to drill the #1 Travis well by the 2nd week in June, 2013.
Fossil Management has an exciting Executive Summary (e-book) now available to those interested by CLICKING HERE and requesting it to be sent to you in the mail or digitally.
New Video Posting – Fossil Oil Company Message from the President
Fossil Oil has currently just posted a new video from Fossil Oil’s President, Dennis R. Kittler. Fossil is proud to announce that its Fossil-Mississippi Oil Well JV-II project is starting to begin the initial drilling stage. A few Investment Units reamin at this time which is on a first come basis. The exciting loswer Tuscaloosa oil well which is located in Lincoln County, Mississippi is nearly 100% subscribed affording a high 2013 tas write-off along with an estimated fast payout and significant return on investment (ROI).
To see Fossil’ new video please CLICK HERE.
If you would like more information on our curent projects please CLICK HERE
FOSSIL OIL HITS TWO TEXAS OIL/GAS DISCOVERIES
Flaring of the MCH #1 Well in Liberty County, TX
New discoveries revealed in Brazos and Liberty Counties
Houston, TX, Feb. 4, 2013 – Fossil Oil Company, LLC announces its newest gas/condensate discoveries by first drilling the deep, 3D seismic-based Cook Mountain well in Liberty Co., TX, and a second oil/gas discovery by drilling a dual-stacked, horizontal well into the Buda and Georgetown formations in Brazos Co., TX.
The Bandit #1 Well is a deep 15,000’ Cook Mountain (Yegua Sand) formation that tested on a conservative 7/64th choke flowing 140 Barrels of Oil and 1.3 Million Cubic Feet of Gas. Opening the choke to a 10/64th, testers measured the gas volume over 2 Million Cubic Feet of Gas a day and the oil to nearly 300 Barrels of Condensate per day. The flowing tubing pressure remained stable at 8,500 psi throughout the 48 hour test. A pipeline is being built and the tank battery installed currently. View images of the well at http://fossiloil.com/blog/tag/oil-investment/.
The Gary Bryant #1H Well is a 9,200’ vertical well with 3,500’ laterals in the Buda formation and in the Georgetown formation. This well was flowing gas and oil throughout the drilling of each of the stacked laterals. A pipeline is currently being installed to the interstate sale line along with the production facility.
“What a sight to behold,” said Fossil Oil’s President Dennis R. Kittler during the initial flaring of the gas while cleaning up during the well testing. Mr. Kittler was able to catch all the excitement on video. View the completion and testing of the Bandit #1 Well at http://www.youtube.com/watch?v=GUg9MDM8Wbc&feature=youtu.be.
If you would like more information on Fossil’s current Joint Ventures, please visit our website at www.fossiloil.com. If you would like to speak to Randy Long (Assistant to the President) about Fossil’s current projects please email him at randy@fossiloil.com or call 713-978-7986.
Fossil Oil Completes New Gas/Condensate Discovery in Liberty County, Texas!
Photo of MCH # 1 Well Flaring in Liberty County, Texas
Fossil Oil Company, LLC of Houston, Texas perforated and tested the Bandit Prospect #1 well on January 7th, 2013. This deep 15,000’ Cook Mountain (Yegua Sand) formation tested on a conservative 7/64th choke 140 Barrels of Condensate and 1.3 Million Cubic Feet of Gas. Currently, the Operator is preparing to construct the production facility (tank batteries) and pipeline hook-up to Duke Energy’s interstate pipeline system. Congratultions to the investors that are in this oil & gas investment.
Fossil Oil Evaluating Drilling 200 Wells on 10,000 Acres in Edwards County, Texas
Fossil’s Geologist, Don Timko and Rio Bravo Energy’s Geologist, Bert M. Graham reviewing the technical data.
Fossil Oil Company, LLC of Houston, Texas has initiated discussions and negotiations for the rights to participate in drilling possibly up to 200 natural gas wells on approximately 10,000 acres in Edwards County, Texas just 120 miles west of San Antonio near Rock Springs City, Texas. This could be a great opportunity for some great oil & gas joint ventures. Fossil’s President, Dennis R. Kittler, reported that this project would involve drilling 2 to 3 initial test wells early in 2013 down to 7,000’ to perfect the staged fracturing process of these lower Pennsylvanian aged Holman (Strawn) gas sands. The Holman sand package can be as thick as 800 gross feet and contain up to 7 Billion Cubic Feet of high BTU gas after being fractured. Kittler commented that the economics of this project are exceptional since these wells will be drilled with air rather than conventional drilling fluids (mud). There is also an existing 6” pipeline that crosses the acreage ready to take all the gas that can be produced to market. Fossil’s Geologist, Don Timko remarked that the high BTU natural gas has been proven up in the Val Verde Basin, but, the critical component will be to maximize the recoverable reserves with a successful frac stimulation process.
Fossil Oil Company recevies 2012 Houston Award for Oil and Gas Investments!
2012 Houston Award in the Oil and Gas Investments category
Press Release
FOR IMMEDIATE RELEASE
Fossil Oil Company LLC Receives 2012 Houston Award
Houston Award Program Honors achievement by Fossil Oil Company, LLC
HOUSTON December 3, 2012 — Fossil Oil Company LLC has been selected for the 2012 Houston Award in the Oil and Gas Investments category by the Houston Award Program.
Each year, the Houston Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Houston area a great place to live, work and play.
Various sources of information were gathered and analyzed to choose the winners in each category. The 2012 Houston Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the Houston Award Program and data provided by third parties.
The Houston Award Program is an annual awards program honoring the achievements and accomplishments of local businesses throughout the Houston area. Recognition is given to those companies that have shown the ability to use their best practices and implemented programs to generate competitive advantages and long-term value.
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Fossil Oil Acquires Valuable 3,000 Mineral Acres in Liberty County, Texas
Executed by Chris Villa, President of Yale Investment Corporation
Fossil Oil Company, LLC of Houston, Texas finalized negotiations for the oil & gas mineral rights to more than 3,000 acres in Liberty County, Texas on never before drilled land between the South Liberty Salt Dome Field (town of Liberty) and the Martha Oil Field (town of Dayton). Fossil’s President, Dennis R. Kittler reported that this potentially lucrative mineral lease was secured from the Yale Investment Corporation which owns the Liberty Bell Ranch property. Fossil Oil also secured the rights to the various 2-D and 3-D seismic data that had been previously shot over most of this acreage. Fossil Oil is planning to drill several initial locations based on this existing seismic data in 2013. Mr. Kittler commented that several generations of the family that owns this acreage simply refused to have any wells drilled on their land. He continued to say that there could be significant oil and gas reserves beneath this undrilled acreage that a successful new discovery well would prove up. What is really exciting is that this 3,000 acre prospect is right in Fossil Oil’s back yard!
Impending Individual Tax Law Changes for 2013
Many key federal tax rules affecting individuals will “sunset” at the end of 2012 unless Congress acts otherwise to extend or permanently enact those provisions. As year-end is approaching quickly, it is wise to be aware of what to expect in 2013, absent further legislation.
Key tax law changes affecting individuals beginning in 2013 if prior laws’ sunsets go into effect:
- Ordinary income-tax brackets – The 10% bracket goes away, with the lowest bracket being 15%. The size of the 15% bracket for married individuals filing a joint return will be less (167%) than twice the size of the 15% bracket for individual filers, as it is currently. The top four brackets rise from 25%, 28%, 33%, and 35% to 28%, 31%, 36%, and 39.6%, respectively.
- Taxation of capital gains and qualified dividends – Generally, long-term capital gains will be taxed at a maximum rate of 20%, an increase from 15%, for higher bracket taxpayers. A 10% rate applies to individuals in the 15% tax bracket. Qualified dividends will be taxed at ordinary income-tax rates (up to 39.6%), as opposed to receiving capital gain treatment, as under current law.
- Reduction in itemized deductions – For higher income individuals, most itemized deductions will be reduced by 3% of adjusted gross income (AGI) above an inflation-adjusted threshold. Reduction cannot exceed 80% of the amount of itemized deductions otherwise allowable.
To read more, go to http://melton-melton.com/the_competitive_edge/article/impending_individual_tax_law_changes_for_2013.
Oil Price Near $89 amid Mideast Tensions
Rig # 86
PAMELA SAMPSON | AP Business Writer
BANGKOK (AP) — Oil prices fluctuated Tuesday as the impending restart of a North American pipeline balanced fears that Syria’s conflict might spread beyond its borders and jeopardize oil supplies.
Benchmark oil for December delivery was down 26 cents to $88.39 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange after briefly venturing above $89 earlier in the day.
The contract fell $1.32 to finish at $88.73 per barrel in New York on Monday, reaching a three-week low as a major North American pipeline got set to reopen.
TransCanada is expected to soon restart its 2,100-mile (3,380-kilometer) Keystone pipeline. It was shut last Wednesday after tests showed possible safety issues. The pipeline carries about 590,000 barrels of crude per day from Canada to facilities in the U.S. Midwest.
The ongoing civil war in Syria has shown signs of escalating beyond the country’s borders, keeping oil traders nervously eyeing energy supplies. Syria itself lacks vast oil reserves but a wider conflict could threaten routes through which much of the world’s oil is shipped.
“At present, we do not expect conflict to spread outside of Syria and Lebanon but the Middle East holds several key oil transit routes — the Suez canal and Strait of Hormuz. Any disruption in passing through these chokepoints would contribute to a momentary upward shift in oil prices,” said Edward Bell, commodities analyst for the Economist Intelligence Unit, in a market commentary.
