January 27, 2021

Cottle Holdings Inc (CHI) has inked a new oil development project in historical Burkburnett Texas. Targeting the upper and lower gunsight oil sands on a 170 acre development lease.

“We are pleased to have completed and wrapped up financing on this project. It has been a difficult year for most of the oil and gas industry. This was a strategic move for a low cost play with big upside in a rising oil price environment. We anticipate high returns, and even in a low oil price economy we will have marginal returns at prices as low as 14$/BBL. When most of West Texas is losing money per barrel at those prices “

-Bridger Cottle, President

Most of the prolific fields in Wichita County are from the Upper-Middle Pennsylvanian and Permian sandstone formations. In the central-northern portion of Wichita County where the Development lease is located, several major fields form a distinct east-west trend that intersects the lease. Oil production from these fields are from anticlinal traps in the Cisco sands of upper Pennsylvanian age at depths of 700 to 1,900 feet.

In the immediate vicinity of the Development lease, all shallow production is from the Permian Sands and Limestone and the Cisco oil sands, which have been divided into Upper, Middle, and Lower Cisco Groups. The Middle and Lower Group sands have been more prolific, with many wells having initial productions over 100 bopd. The oil is high grade with API of 41 degrees in gravity and containing practically no sulfur. The most productive sands are Gunsight sands (Lower Group) and Thomas sands (Middle Group).

Cottle Holdings expects a full return of capital over the next 18 months, if oil prices continue on there current trend, with the first wells being drilled right away. Drilling is set to begin by the end of February, with continuous drilling over the next 3 years to develop the lease.

WTI closed on January, 28 2020 at $52.34/BBL