Kelcas Corporation (K-corp.) and Kelcas Well Services Ltd. (KWS). K-corp. have been in continuous operation for more than two decades performing oil and gas operating and production activities in Western Kentucky and Southern Indiana. In the fall of 2000 the Kelcas companies were purchased by Mr. Wilhelm Lilliehook of Stockholm Sweden who expanded the staff with a team of seasoned oil and gas professionals including operation managers, office staff, roustabout crews, rig hands and field pumpers. With these additions, Kelcas expanded its capabilities to include drilling, exploration and development activities. The management staff had personally been responsible for drilling over 480 wells in many states including Tennessee, Kentucky, Indiana, Illinois, Virginia, and Ohio. Combining this wealth of experience and expertise makes Kelcas a winning combination. And with the large investment in personel there also came a considerable investment in new oil production equipment, exploration equipment, and updated office systems.
Black dots show drilled wells. Click on image to enlarge,
Since its discovery in 1886, approximately 4.3 billion bbls of oil and an estimated 4 trillion cft of associated dissolved natural gas has been produced in the Illinois Basin from Paleozoic rocks.
The area surrounding Kelcas's acreage holdings are part of the southern most portion of the Illinois Basin. The acreage held by Kelcas is generally located within 75 miles of Henderson Kentucky, and situated in four Kentucky Counties including the acreage beneath the Ohio River in Henderson County. Total acreages Held-By-Production (HBP) by is approximately 7,000 acres (One acre = 4047 sq. meters) encompassing several contiguous counties. In addition to the 7,000 acres HBP, Kelcas has acquired selected drilling and rework leases in the project area. Along with 7,000 acres of oil and gas leases, Kelcas has producing, dormant and water injection wells. Some of the dormant wells are economically suitable for re-work and can provide excellent opportunities to obtain increased production. The dormant wells once placed into operation offers HBP acreage presenting exceptional prospects for drilling infield and exploratory targets. By using existing well records to establish conservative production estimates, dormant wells can add substantial production for Kelcas and its partners.
Historically, Kelcas’s holdings have produced in excess of 200 million barrels of oil, all from a small number of shallow productive formations. Kelcas has produced over 800,000 barrels of oil since its foundation. Production is primarily from multiple shallow reservoirs at depths of less than 2000 feet. Approximately 30 distinct zones or traps have been identified as commercially productive within the shallow depths indicated above. The recent trends towards using more sophisticated exploration techniques (i.e.: seismic, high altitude imagery, sub-surface maps, etc.) have aided in establishing additional deeper productive zones to 5000 feet in total depth.
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The acreage holdings of Kelcas are strategically placed, representing substantial opportunities to increase production through Developmental and Exploratory Drilling, as well as high potential new lease acquisitions. FYI, reserve potential is calculated using three predictable engineering categories, Proven Producible, Proven Probable and Proven Possible. Proven Producible reserves estimated from recoverable oil based on existing records. Proven Probable reserves are derived from producing formations as identified by well logs behind pipe and direct offsets to producing wells, while Proven Possible reserves are the result of acreage in a producing area that Engineering and Geological Studies indicate possibility of productive reservoirs from evidence of structure and geologic trends. With Kelcas's wide-ranging acreage position in Kentucky, Kelcas has an excellent future ahead. The Engineering and Geological Review of Kelcas's Properties indicates that Kelcas has Exploration - Proven Possible Reserves of +15,000,000 barrels of oil in place based on geological reviews of Kelcas and Public records as well as information from adjacent producing properties. Kelcas owns a large portion of the operating interest in the developed wells and 100% WI (Working Interest) in the undeveloped acreage. Recent discoveries in the area have produced initial production rates in excess of 1,000 BOPD with sustained production rates in the 400 barrel per day range.
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The Kelcas acreage is very appealing for new development with managed risk. It is estimated that Kelcas has more than one hundred locations available for new drilling in an area that historically has an 80% success rate for infield drilling. Since Kelcas is located in the southern edge of the Illinois Basin, there are multiple pay zones available for exploitation. Kelcas currently has many opportunities to develop existing fields as well as exploring deeper and offset potentials. These deeper potentials found in recent seismic acquisitions show distinct deeper targets in the Mississippian (Warsaw), Devonian (Black Shale & Dutch/Clear Creek), Silurian (Reef) and Ordovician within the Trenton-Black River and Knox Formations which are all within proximity to Kelcas's holdings.
Respectfully Submitted by the management of Kelcas Corp.
Kelly Castle, Arbirlot, Scotland - Origin of the Kelcas Name
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