Diligence in Oil and Gas Exploration! FOSSIL
Oil & Gas Management, L.L.C.
HOUSTON, TEXAS
Skill + Experience + 3D Technology = Success!
Independent
Oil and Gas Management!
Fossil
Oil & Gas Management, LLC. is an independent oil
and gas management company with management having over
40 years experience serving Texas and Louisiana Gulf
Coast, South and East Texas.
Throughout most of
2008, the oil and gas industry had never been better
in its 150 year existence. Oil companies were experiencing
record profits. The industry appeared to be revisiting
the oil boom of the early 20th century but with far
greater results with Natural Gas and Condensate as an
added commodity! It was a period of global demand for
energy, tightening supply, lingering energy bill in
our own country, and tax write off incentives in the
tax code to stimulate public and private sector oil
and gas partnerships. The opportunities were astounding
through the first 3 quarters of 2008. The price of a
barrel of crude oil hit a record $147.27 on July 11th.
All this changed when the “economic crisis”
caught most of us by surprise. Five years of increasing
price gains for oil and natural gas was lost in five
months. What we must remember is that crude oil traded
at $17.85 per barrel in 2002 and by 2007 had jumped
to $95.98 per barrel. Currently, oil is trading at nearly
$40 per barrel. Industry pundits are predicting that
as the stock market recovers in the second half of 2009
and into 2010 our economy and the demand for crude oil
and natural gas will do the same. The instability of
the Middle East oil producing countries and the reduction
of oil output by OPEC should also help prices climb
back up to reasonable levels.
In spite of today’s
lower prices, industry economists predict worldwide
consumption to be 115 million barrels of oil a day by
2030, a huge increase from current demand. World competition
for fossil fuel sources will always exist, yet, big
oil companies have reduced their drilling budgets from
30% in the mid-90's to under 18% today. Much of today’s
world's oil has been nationalized, leaving the major
USA oil companies scrambling for incredibly expensive
international and deep water projects (Outer Continental
Shelf – Gulf of Mexico). Thus, with the absence
of the major oil companies drilling onshore, “the
playing field has been leveled” and huge opportunities
prevail to explore these vast onshore projects. Companies
like Fossil Oil & Gas Management, LLC are currently
sitting on the sideline waiting to see an upward trend
in oil prices. Until this happens, Fossil management
will continue to manage our existing joint venture operations
only.
Industry
News Updates! 07/01/09
- XTO Energy Inc., Fort Worth, Texas,
(NYSE: XTO) has updated its price hedges and
has now hedged approximately 95% of its projected
2010 oil production.
XTO has hedged 70,000 barrels
of oil per day at $95.70 per barrel in 2010.
The company has also hedged 730 million cubic
feet of gas per day at $8.67 per thousand cubic
feet in 2010. Total hedging for 2010 is 1.15
billion cubic feet of gas equivalent at $11.33
per thousand cubic feet equivalent.
XTO chairman Bob Simpson says,
We are encouraged by our activities in the Bakken
shale and the additional oil hedges underpin
these strong economics. Even in these difficult
economic times, our geo-technical team continues
to unlock the power of last year's acquisitions
and position XTO for a strong 2010.”
6/15/09- Reported Prices
– even with firming oil prices (now exceeding
$70 per barrel) natural gas has separated from
the oil complex and has fallen to a daily and
prompt month range of $3.50 to 3.85 per MMBtu.
Optimism regarding future economic recovery
seems to be fueling the oil commodity price
rebound. However, looking at natural gas, the
nation’s underground storage position
is strong, as are other supply-related indicators
compared to natural gas consumption. It appears
that physical fundamentals are carrying the
day for natural gas pricing. Some analysts (without
a supply disruption or strong power generation
demand this summer) see them going even lower.
Read more....
HOUSTON, June 11 --
Oil prices continued to escalate June
10 with the front-month US benchmark contract
closing above $71/bbl in the New York market
for the first time in 8 months following reports
of unexpected drops in crude, gasoline, and
distillate fuel inventories. Read
more....
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6/26/09
– (Fossil – Cooley Gas Field JV)
Fossil Management has completed the Ballot tally
from all of the JV partners. The over-whelming
vote was to authorize the Managing Partner to
get the Horelica #2 well plugged by a third party
eliminating the liability to the JV to plug and
abandon this well in the future.
6/26/09 –
(FOSSIL – 2007 YEAR-END MULTI WELL JV)
Fossil Management has completed and mailed out
the Quarterly Summary and the Accounting Summary
reflecting Revenue Distribution #10 for the sale
of Oil & Gas produced in February, March and
April, 2009 for this Joint Venture.
6/24/09 –
(FOSSIL – BARHAM #1 JV PARTNERS)
Fossil Management has mailed out the Quarterly
Summary and the Accounting Summary reflecting
Revenue Distribution #10 for the sale of Oil &
Gas produced in February, March and April, 2009
for this Joint Venture.
6/22/09 –
(FOSSIL- TEXAS OIL FIELD PRODUCING WELLS JV)
Fossil Management has just sent out the Quarterly
Summary and the Accounting Summary reflecting
the Revenue Distribution #13 of Oil & Gas
produced in February, March, and April, 2009 for
this Joint Venture.
6/19/09 –
(2008 JV TAX INFORMATION) Fossil
Management has submitted all Corporate Federal
Tax Returns and their respective Franchise Tax
Returns for each Fossil sponsored Joint Venture
for 2008. Fossil JV partner’s K-1’s/Form
1065 and their JV 2008 Federal Tax Return have
also been sent out via the US Mail by Hilliard
& Associates, P.C. our CPA firm. Should and
JV partner need additional copies of your K-1
information or any other operational or accounting
matter, please call Tom Hood or Trish Webster
in our corporate office at 713-978-6805 .
Quick Links to Your Well Reports
*Login and Password Required for all Drilling
& Completion Reports!
*Login
and Password Required for all Drilling &
Completion Reports!
7/2/08– The
Fossil-Forgason #1 well in Wharton
County, Texas (DRILLED,
TESTED, COMPLETED, PRODUCING GAS)
continues to be a consistent and steady producer
of natural gas and the daily production chart
can be reviewed on the report site. (Click
to go directly to this well’s Report Link.)
7/1/08
- FOSSIL-ARCO FEE #1-R Well
(part of the Fossil-Texas Oilfield Producing
Wells JV) in Tyler County, Texas (PRODUCING
OIL AND NATUAL GAS DAILY) Recompletion
and workover activity was successful and this
well is producing both crude oil and natural
gas daily. Partners can review the Production
Charts in the Report Section for this JV
(CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK).
7/1/08 - FOSSIL
- LITTLE – ARCO #1 - T Well (part
of the Fossil-Texas Oilfield Producing Wells
JV)in Tyler County, Texas
(PRODUCING NATURAL GAS
AND CRUDE OIL DAILY) Partners
can review the Report Section for this JV
(CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK
7/1/08
- Fossil-Thibodeaux #1 well
in Calcasieu Parish, Louisiana (part of the
Well Multi-Well JV) (DRILLED,
TESTED, COMPLETED, GAS PIPELINE CONNECTED AND
PRODUCING GAS) continues to
be a consistent and steady producer of natural
gas and the daily production chart can be reviewed
on the Report Section for this JV (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK).
7/1/08 - The Fossil-Dobbs
Ranch #1 well in Lavaca County, Texas
(DRILLED, TESTED,
COMPLETED, TESTING AND PRODUCING GAS)
continues to be a consistent and steady producer
of natural gas and the daily production chart
can be reviewed on the Report Section for this
JV (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK).
7/1/09
- Fossil – Horelica #1A-ST well
in Fort Bend County, Texas (also part of the
Fossil-Call Oilfield and Fossil-Salinas JV)
(DRILLED, TESTED, COMPLETED, PRODUCING
GAS AND OIL) Details of workovers
and daily production can be reviewed in the
Report Section for this JV (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK)
7/1/09
- Fossil–Barham #1 well
in Calcasieu Parish, Louisiana (DRILLED,
TESTED, COMPLETED, RE-COMPLETED IN A NEW ZONE
AND PRODUCING NATURAL GAS AND CRUDE OIL DAILY)
continues to be a consistent and steady producer.
The daily production chart can be reviewed on
the Report Section for this JV (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK)
6/26/09
- Fossil Metals JV (part of
the 2007 Year End Well Multi-Well JV) Progress
reports and updates can be seen in the Report
Link (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK)
6/15/09
- Fossil–2005 Call Oil Field (Kansas/Texas)
Multi-Well JV. All special notices
and production reports can be reviewed on the
Report Link (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK)
5/6/09–
The 2007 Fossil –Year End Joint Venture
– This multi-well joint venture
continues to manage several producing wells
and a precious metals project. (CLICK
HERE TO GO DIRECTLY TO THE REPORT LINK)
Fossil
Oil & Gas Management, LLC. is an independent oil
and gas management company with management having over
40 years experience serving Texas and Louisiana Gulf
Coast, South and East Texas.
7/2/08– The
Fossil-Forgason #1 well in Wharton
County, Texas (DRILLED,
TESTED, COMPLETED, PRODUCING GAS)
continues to be a consistent and steady producer
of natural gas and the daily production chart
can be reviewed on the report site. (
7/1/09–
The
Horelica #2 well in Ft. Bend County,
Texas. History of this well can be reviewed
in the Report Section for this JV
(
6/26/09
- Fossil Metals JV (part of
the 2007 Year End Well Multi-Well JV) Progress
reports and updates can be seen in the Report
Link (
