Sweet Baby McBee North
The Sweet Baby Mcbee North Project is a horizontal drilling prospect managed by Domestic Drilling & Operating LLC in Wilson County, Texas. The project targets the Austin Chalk Formation to exploit oil-rich “cluster fault swarms”.
Project Overview
- Location: The prospect covers approximately 230+ acres in Wilson County, Texas3.
- Target: A horizontal well with a planned 5,500-foot total depth and a lateral of approximately 2,200 feet.
- Potential Reserves: Estimated total oil potential for the acreage ranges from 800,000 to 2,400,000 barrels of oil (BO)5.
- Production Goals: The project targets an initial potential (IP) of 300 to 700 barrels of oil per day (BOPD).
Investment Structure
- Total Units: The project is divided into 100 units.
- Unit Cost: A 1% working interest (WI) is priced at $60,000.
- Net Revenue Interest (NRI): Investors receive a 0.70% NRI per 1% unit.
- Tax Benefits: The investment is structured to be 100% tax-deductible in the first year through intangible drilling costs (87%), tangible equipment (11%), and administrative expenses (2%).
Geological Strategy
- Fault Targeting: The plan involves drilling perpendicular to a controlling fault to encounter vertical fracture swarms that release oil.
- Modern Technology: The company utilizes “horizontal under-balanced” drilling, which they claim provides better production rates than older vertical methods that often clogged fractures with drilling mud.
Key Leadership
- Sean Roger (CEO): A geotechnical engineer and Professional Landman with over 31 years of experience in the industry.
- Dr. Robert Miles (Geophysicist): A Caltech PhD holder who invented the “QuickLook” process for integrating geological and geophysical datasets.