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 NAEG Opens In Wolf Point , Works To Revitalize Oil Wells, Economics |
Reprinted from The Herald News
Located in the Tip Top Plaza in Wolf Point, the Native American Energy Group has made a new home.
NAEG specializes in acquiring and revitalizing abandoned oil fields with substantial known reserves in fields, which were previously developed and capped due to depressurization.
John Weeks, director of operations, said they are working within the boundaries of the Fort Peck Indian Reservation. NAEG is taking a look at oil wells and seeing if they are able to put them back into production.
So far, he said even though they have only been in operation in Wolf Point for a short time, they have been really busy finding a lot of possibility opening up to them.
Weeks said there is a lot of potential for the area to bring oil wells back into production.
The first step is a geologist goes in and tests the wells to see if there is even a potential.
NAEG uses technology that takes abandoned fields and restores production with enhanced recovery technologies such as underground gravity drainage and thermal injection methods also known as stream assisted gravity drainage.
Weeks said that NAEG has become a reputable company over the years, doing work in the south. They are also listed on the NASDAQ OTC Market. They also had $3 million invested into the company.
When Weeks, a longtime Wolf Point resident, was asked to join the business, he felt it was a good decision. Weeks says that he believes NAEG will help0 bring economic prosperity to the area.
Tony Johnson, geologist and petroleum engineer for NAEG, said the potential for these wells is there.
Johnson says they hope to be able to open these wells back up again. Along with that they hope to be able to train people to work in the oil field industry.
He said that 90 percent of service work will be done by trained individuals from the area.
NAEG is a company that wants to work with the community and enhance economic prosperity, Johnson said.
Right now, they’re focusing on the boundaries of the reservation, but Weeks said they hope to expand into other areas in northeast Montana.
Enhanced oil recovery will play a key role in helping to fuel America’s future. EOR programs can make it possible to recover millions of proven oil that is sitting in the reservoirs of U.S. oil fields.
This oil was too expensive to pump in the past because of lower commodity prices and insufficient technology that could not effectively support enhanced recovery efforts.
However, with new advances in technology and rising prices for oil, it is possible and provide a healthy profit margin.