Cooper-Warren No. 1, LLC drilled four oil wells in late 2012 in Cherry Grove, PA, Warren County in the Allegheny National Forest, where we are subject to Federal Regulations in addition to those of the Commonwealth of Pennsylvania.
The wells were completed as both oil and natural gas wells and began producing in the spring of 2013. Oil and gas production comes primarily from the Cooper, Klondike and Bradford Third Sands.
We are pleased to announce the very positive news that Edward Oil Company of Warren, Pennsylvania, the leaseholder on this government warrant and many nearby warrants, is the new operator on our property.
Edward Oil Company is led by Mr. John Mc Cool who formed his company in 1977 and currently owns and operates over 400 wells in Pennsylvania, Michigan, Louisiana, Oklahoma and Alabama.
Edwards Oil knows how to operate wells profitably, when commodity prices are low, which is the environment that we find ourselves in currently. Additional good news pertains to the natural gas pipeline into which we produce our gas. Significant improvements and upgrades are being done to the "sales" line which means that we can transmit our natural gas into low line pressure, negating the need for a compressor, saving us compressor and all associated costs, which have been a significant drain on our income.
Since we are now in the middle of winter in Pennsylvania, the wells are shut-in, which saves us unnecessary costs. In late-March/early April, Edwards Oil will begin active production on our wells and we will begin distributions once again.
Finally, oil prices have risen from $35.97 on January 5, 2016 to $ 53.99 on January 8, 2017 with signs of continued improvement.
We look forward to rapid improvement in this program under the capable operation of Edward Oil Company.