Oklahoma's oil and gas industry is quite mature. Hundreds of thousands of wells have been drilled in Central Oklahoma since 1900. Many of these wells have penetrated the reservoirs that the more recent Hunton dewatering process technology now exploits. Dewatering involves the production of oil and gas from certain reservoirs, such as the Hunton formation in Oklahoma, where substantial amounts of water are present along with the oil and gas.
These reservoirs have been re-evaluated from a geological and engineering standpoint by our operating partners using both historical information and their practical knowledge gleaned from recent production experience. This re-evaluation has allowed us to target reservoirs that have produced or might have produced conventionally if their high water content had not caused prior operators to abandon production. We have seen substantial production from these reservoirs by using dewatering technologies.
In a dewatering operation, all of the fluid is pumped to the surface using submersible pumps installed at the bottom of the well, and the water is then separated from the oil and gas. The oil and gas is sold while the water is disposed into a separate underground formation. This technology is similar to that used in coal bed-methane production.