Sweet Baby McBee South

The Project Is Fully Funded and Sold Out

The Sweet Baby McBee #1 Horizontal Project is an oil development venture in Wilson County, Texas, managed by Domestic Drilling & Operating LLC. Following a strategy similar to other Austin Chalk developments, this project focuses on using horizontal drilling to unlock high-potential reserves in a historically productive area.

Project Core & Strategy

  • Target Formation: The prolific Austin Chalk, a low-permeability reservoir that flows naturally when its extensive fracture systems are accessed.

  • The Plan: Drilling a horizontal well to a total depth of 5,500 feet, including a 2,000-foot+/- lateral section.

  • Strategic Approach: The lateral will be drilled perpendicular to the controlling La Vernia “Crevice” Field fault to intersect “cluster fault swarms” and vertical fracture planes.

  • Technology: Moving from the older, inefficient “vertical over-balanced” methods of the 1950s to modern “horizontal under-balanced” drilling to maximize production rates and recovery.

Production & Potential

  • Reserve Potential: Estimated at approximately 800,000 barrels of oil (BO) for the 267+/- acre lease.

  • Initial Potential (IP): Targets production between 300 to 700 barrels of oil per day (BOPD).

  • Historical Context: While old vertical wells in the area typically yielded only 10,000–18,000 BO, nearby horizontal wells have shown significant results, such as the Scull Unit #1 with an IP of 728 BOPD.

Investment Economics

  • Entry Cost: $58,000 per 1.00% Working Interest (WI) unit.

  • Ownership: Each unit provides a 0.70% Net Revenue Interest (NRI).

  • Payout Projections: At an oil price of $65/BBL, estimated payout periods range from 6 to 14 months depending on the BOPD achieved (300–700 BOPD).

  • Tax Advantages: Approximately 100% of the investment is potentially deductible in the first year—89% as Intangible Drilling Costs (IDC) and 11% as tangible equipment depreciation.

  • Contract Structure: Participation is based on a single-attempt Turnkey Drilling Contract.

Management Expertise

  • Sean Roger (CEO): A geotechnical engineer and Professional Landman with over 30 years of experience.

  • Dr. Robert Miles (Geophysicist): A Caltech Ph.D. and former partner at Koch Industries, specializing in advanced exploration technologies and reservoir development.