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NewsBot Date: March 23, 2005 07:35:05 PM
ACKO Austin Chalk Oil and Gas Ltd,Stock Trading Message Board News
Form 10QSB for AUSTIN CHALK OIL & GAS
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24-Nov-2004
Quarterly Report
Item 2. Discussion and Analysis or Plan of Operation.
(a) Plan of Operation for the next twelve months. Our plan of operation is substantially changed from our annual report for the year ended December 31, 2003, and our previous quarterly report for the period ending June 30, 2004. Austin Chalk Oil and Gas, Ltd. is actively pursuing that new business plan to engage in the oil and gas development of existing wells and new properties.
On or about July 8, 2004, the Company entered into agreement to acquire a working interest in a horizontally drilled oil and gas well in the Giddings Field of the Austin Chalk Trend in South Central Texas. The well is being drilled by Holifield Oil Company which is owned and operated by Ray Holifield. Over the past three decades, Ray Holifield has drilled almost 25% of the 9,000 wells in the five-county areas that Giddings Field encompasses. He has collected an extensive database of geological and engineering records on Giddings Field at a cost of approximately 10 million dollars ($10,000,000).
In the early 1970's, Mr. Holifield was associated with D.R. McCord and Associates, a pioneer in using computers for oil field modeling and simulation. While working for McCord in the Middle East, Mr. Holifield developed innovative techniques in Giddings Field, which enabled him to quickly identify fractures and faults containing hydrocarbons. In Lee County Texas alone, he has used this seismic data to drill 647 vertical wells. Many began production at more than a thousand barrels of oil per day. Overall, these 647 wells averaged 147,902 barrels oil equivalent - a production rate 4.7 times greater than the average of all other operators in the same area.
The Company, has obtained an option to participate in the next five wells to be drilled by Holifield Oil.
(b) Discussion and Analysis of Financial Condition and Results of Operations. We have enjoyed no revenues during the periods covered by this report or corresponding periods during the previous fiscal year.
