Welcome to the Fossil Oil Company Blog for news of interest to our clients and the oil and gas investment industry.
July 24, 2015 – Houston, Texas. Fossil Oil Company announces that they have been notified by Woodstone Resources’s President, Mr. Warren McFatter that Parker Drilling Company’s Rig # 54 has been selected to drill the Galveston Bay Energy State Tract 259 Well #1 also known as the North Eagle Bay Prospect. Currently, Rig 54 is drilling an offshore well in Louisiana. Once finished drilling of this well, Rig 54 will move on to our location. Rig 54 is a 2000 Horse Power posted barge. Several photos of this very capable rig are posted to this report.
Fossil Oil Company owns a 20% Working Interest in this 1,920 acre prospect. There are still a few Investment Units remaining. This Offshore Project has tremendous economic potential which you can review by CLICKING HERE and requesting the online brochure on the North Eagle Bay Offshore Joint Venture.
North Eagle Bay Prospect is located in the shallow waters of Galveston Bay (Gulf of Mexico) on a 1,920 acre offshore State Lease block in Chambers County, Texas just 60 miles south of Houston, TX. This Prospect lies within the prolific Frio-Vicksburg producing trend of Southeast Texas. We believe ultimately several additional wells will be drilled starting in 2016 and years to come to fully develop this potential new field discovery. An Investment Unit of $25,000 could represent an estimated $1,230,440 value of the projected reserves from this Program. This would then equate to an estimated 24:1 to 49:1 Return On Investment (ROI) over the life of the well (s).
Gary Ross, the founder of consultants PIRA Energy Group, said oil markets aren’t nearly as oversupplied as many believe and spare capacity is tight since Saudi Arabia is pumping all the crude it can without new drilling.
“Current prices are unsustainable,” he said Monday in an interview in London. “It’s hard not to see oil hitting $100 a barrel at some point in the next five years.”
The forecast from Ross, who last year turned bearish on oil before prices shrank by half, is at odds with other analysts and investors bracing for “lower for longer” prices, a term coined by BP Plc Chief Executive Officer Bob Dudley. Saudi Oil Minister Ali Al Naimi said in December the world may not see $100 crude again, while the International Energy Agency has described the markets as “massively oversupplied.” Continue reading →
People On The Move – Houston Business Journal
HOUSTON, June 26, 2015 /PRNewswire/ — Fossil Oil Company, LLC announced their first offshore drilling project set to commence drilling operations in August 2015, offshore Galveston Bay, Chambers County, Texas.
“For years, I have been looking for the opportunity to participate in an offshore drilling project for our investor base,” explained Dennis Kittler, Fossil Oil’s President. “The primary hurdle has been the enormous costs involved in generating deep water prospects. This is why 90% of the participants in offshore drilling projects are larger independent and major oil companies.”
After 40 years in this business, Mr. Kittler’s dream came true when Fossil Oil acquired the last Working Interest percentage in a 1,920 acre offshore State Tract called the North Eagle Bay Prospect in April of this year. Fossil Oil’s team of specialists reviewed and analyzed all the 3-D seismic data, including the lower cost of drilling a shallow water well, resulted in an overwhelming approval to participate. As Managing Partner, Fossil created the Fossil – North Eagle Bay Offshore JV – I – 2015 (“Prospect”).
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by Moming Zhou
June 22, 2015 — 3:29 AM EDT Updated on June 22, 2015 — 3:15 PM EDT
Crude oil rose on speculation U.S. inventories fell for an eighth week, the longest stretch of declines in seven years.
Crude stockpiles decreased by 1.5 million barrels in the week ended June 19, according to a Bloomberg survey before Wednesday’s government report. Prices also gained amid optimism Greece’s debt crisis will be resolved.
“We are looking ahead to the inventory report already,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “We have a good economy ahead and it’s not going to be upset by a Greek default. It’s a macro play at the moment.” Continue reading →