Mills Ranch Granite Wash, Vertical Development, Wheeler County, Texas

Crest commenced drilling the Mills Ranch Granite Wash play in 1996. Production peaked at 10.5 MMcfed in December 2001.

  • Mills Ranch has now been extended into the larger Stiles Ranch Granite Wash area.

  • Crest operated or caused the drilling of 19 wells with only one dry hole (95% success rate).

  • Crest partners’ ownership ranged from 33-100% working interests in the 18 producing wells.

  • The Company’s leasehold was acquired from Chevron, KCS, Texas Crude and W&T Offshore.

  • Chevron operated the one dry hole where Crest had only an 8% working interest.

  • Chevron had the right to operate after Crest drilled and completed the wells.

  • After operating the field for about two years, Chevron voluntarily returned operations to the Company because they believed that Crest was a more effective, low-cost operator.

  • Crest operated 17 wells in the field.

  • The Company reduced drilling days in the field from 40 to 18 days per well.

  • Reserves average 2 Bcfe per well in vertical holes.

  • Recent horizontal success in the Granite Wash suggests that there is an be an 8-10 to 1 increase resulting from horizontal completions over vertical wells.

  • Crest’s original partners have averaged over a 5.0x ROI.