Yaterra Ventures, Inc.—a Texas company—is negotiating final terms on a work over lease agreement which includes more than 150 wells on more than 1,600 acres of land in Western Pennsylvania.
According to Yaterra executives, most of these wells are production capable but are not in use due to financial constraints of the previous owners. The leases are currently producing between 6–10 barrels of oil per day (BOPD). The company is confident it can increase this level to 20–40 BOPD.
Yaterra field execs have mentioned that some of the wells will require a work over which includes tasks such as replacing pumps and fixing down hole casing. Other wells will only require treatment to remove the mineralization and paraffin build up. The necessary work is considered low risk and low cost—estimated to require less than a $20,000 investment to bring each well up to its maximum potential.
Yaterra executives hope a final acquisition will take place in the next 7 to 10 days. Although the company’s strategic focus starts in Texas, Marcellus Shale opportunities are of great interest to Yaterra.