Fight for Compensation
Patriot Energy continues its fight for compensation for the unlawful taking of natural gas and oil from the Berea Grit by Rambler Ridge, LLC., and others on the Gsohorn Heirs Lease. The wells acreage which is located near the former site of the Elk Refinery had been idle until am agreement was entered into by Patriot and other parties with Black Crow Oil, LLC., of Atlanta, GA. Patriot later acquired a substantial interest in Black Crow, but disposed of its interest due to the concerns of Interstate Securities Fraud being committed by the Managing Partners. Black Crow was later reorganized , due to the death of John Capito, as Rambler Ridge, LLC., with much of the same management.
Several new wells were drilled on the acreage, but the original agreement provided for the drilling on one Devonian Shale well within two years, or all rights below the base of the Weir reverted to Patriot, et al. Black Crow recompleted the five existing wells on the lease, and drilled three new ones to the depth of the Berea Grit, which lies below the Weir. Although the operator had been notified of its lack of lease rights, it continued to take oil and natural gas from the Berea Grit. for over five years.
According to CEO, Gary Payne, ” Multiple attempts were made to resolve this issue like gentlemen. This is a case in line with the history of the industry, greedy carpetbaggers attempting to defraud an honest, but stubborn son of the South, who refused to be taken advantage of. I do not make idle claims, nor do we desire to take that which is not ours, something the other parties involved in this dispute need to learn.”
Major Lease Acquisition Project
Patriot Energy is currently in the process of acquiring several thousand acres of leases on various tributaries of the Pocatalico River in Kanawha and Roane Counties of West Virginia. The Area of Interest (AOI) has been evaluated by a well known geologist for its potential to prove productive of oil from the Upper Maxon and Big Injun Sandstone. According to CEO, Gary Payne, “We intend to spend the fall and winter months concentrating of completing lease acquisition, title work, and carefully evaluating possible drill sites. We are in hopes that we can commence initial drilling operations in the late Spring of 2014, where we will take a substantial interest in each well on equal terms with are partners”
Patriot Energy to Acquire Additional Wells
Patriot Energy, Inc., announces that it, along with an unnamed partner is currently negotiating to acquire 5 wells located in the Tarriff-Clover Oil Field of south eastern Roane County, West Virginia.
CEO, Gary Payne remarked “These wells have been out of commercial production for several years, but we believe that we can make them commercially productive over time. Since we are able to perform all service rig work, pipeline work, and installation of other types of ancillary equipment in house, we are able to greatly reduce the costs associated with reworking of the wells. This, coupled with higher oil prices, should work in our favor to realize an acceptable ROI. Like most investments in distressed properties, it will take some time to realize any return, we believe that based on the ROI of other available investments (i.e. CDs, stocks, or bonds), this acquisition will prove to be in our best long term interest.
Investor Buyout Program
Patriot Energy, Inc., has recently began a project designed to acquire all outstanding working interest in its wells owned by its investors. Multiple programs have yielded a out on a cash-on-cash Return On Investment (ROI) in excess of one thousand percent (1,000%), and others have performed well on both a cash-on-cash and cash and tax incentive basis. In 2010 Patriots Indian Creek wells located near Elkview, WV suffered a series of small oil spills as a result of vandalism, forcing Patriot to extend a non interest bearing line of credit to the Partnership in excess of One Hundred Thousand Dollars ($100,000.00) to make certain this would never happen again. As a result of this endeavor, the Partners in these wells are not seeing any ROI, with the exception of tax credits, as production revenues are being utilized to repay the debt. According to company CEO, Gary Payne ” After evaluating current production trends, pricing, and our long range plans, we believe it is in the best interest for all parties involved that we consolidate our holdings in our initial programs, that were designed to acquire and rework old wells.
It appears that long term natural gas prices will remain low, thus impeding our ability to provide the kind of return we experienced in the past. Further, we wanted to make certain that all those who invested in our wells saw a good ROI regardless of payout to date. The only way to make certain that our Partners investment in oil and gas outperformed other types was to provide for a structured acquisition of their interests based on the full amount of the initial investment at an interest rate sixteen times of that being offered by multiple area banks. We anticipate having this project completed within the next thirty days, and concentrating our efforts on the drilling of new wells and to use of our available funds to acquire existing producing wells and distressed properties.
Patriot Energy completes rehab and new pipeline installation
Patriot Energy announced that it has completed rehab and new pipeline installation for five wells located in Gilmer and Lewis Counties in West Virginia. These wells are a portion of 41 wells which Patriot Energy will soon acquire partial ownership and assume field operations.
Gary Payne, CEO of Patriot Energy remarked, “Despite extremely adverse weather conditions we were able to complete all this work in 4 days, with the end result being our ability to deliver a substantial amount of gas for wells of this vintage (circa 1970). The oil potential of these wells has not yet been tested, but we plan to install down hole and pumping equipment in the very near future.”
Acquiring ownership of 41 wells located in Central West Virginia
Patriot Energy and an additional partner have entered into negotiations to acquire partial ownership of 41 wells located in Central West Virginia. Preliminary terms of the arrangement will consist of Patriot Energy and its partner acquiring a substantial amount of working interest in the wells together with operating rights to the same.
In anticipation of the upcoming closing, Patriot Energy has dispatched a rehab crew under the supervision of both Gary Payne, CEO of Patriot Energy, and VP of Production, Glendol Tallman, Jr.
Rehab of the two wells, the environmental compliance on three additional wells, together with the construction of approximately 1 mile of natural gas gathering lines and installation of ancillary equipment is anticipated to be completed by March 2013.
Work of similar nature is to be carried out on multiple wells by the end of March 2013.
Keep checking back on the Patriot Energy Facebook page as well as our website, www.PatriotEnergyWV.com for more updates.
New Office Now Open
Patriot Energy has completed initial renovations on its new offices and shop located at 1072 Spencer Road, Clendenin, WV, two weeks ahead of schedule. CEO Gary Payne commented, “I think our ability to complete this operation ahead of time and under budget just illustrates our ability to deliver. It’s this success driven work ethic that carries over into our production capabilities. We are now shipping more crude from significantly less wells than several of our local producers. We believe that with our upcoming drilling programs we will prove ourselves in our ability to deliver both quality and quantity to our prospective partners.”
Groundbreaking for Pipe Yard Project
Patriot Energy today announced that it is beginning initial clearing of a 4 acre site located on Reamer Road in the Town of Clendenin. This site will be utilized as a storage yard for pipe, tanks, and other equipment. Further expansion plans include the construction of a “tank farm” which will allow Patriot Energy WV to gather its own oil and move significantly more crude oil.
According to CEO, Gary Payne, “We are constructing both the pipe yard and tank farm to streamline our drilling and production operations. We anticipate good initial production from our Titan Projects, and in the event crude haulers are not able to move crude fast enough, we will be able to move it to our site and allow the wells to continue to pump as needed. The expanded tank capacities will allow us to guarantee that short of a major refinery issue we will not be forced to shut down any oil well. While we maintain relationships with several crude purchasers, increased production coming on line has slowed hauling. We want to make certain the interests of our investors is protected as much as is possible”
New Building to Open in December
Patriot Energy has nearly completed initial renovations to its recently acquired building located at 1072 Spencer Road in Clendenin, WV. Patriot is scheduled to begin both field and office operations from this site by December 1, 2012.
Keep checking back for pictures! They are coming soon!
Lease Acquisition Announcement
Patriot Energy, Inc., today announced that it has commenced lease acquisition on acreage located in South Central West Virginia. The AOA (Area of Interest) was chosen due to its proven shallow oil and
gas reserves, as well as its potential for further exploration and development of the deeper “Utica Shale”. Patriot Energy has information from wells drilled to the deeper Trenton/Black River that proves there is sufficient potential in the Utica to warrant this endeavor.
While the Marcellus formation has been the driving force in the northern part of the state, and comprising most of the current active drilling, Patriot Energy believes that the Utica holds more promise for the future. Patriot Energy CEO, Gary M. Payne remarked “The Utica was encountered by every producer who sought production in the deeper Trenton/Black River. The logs on these wells showed good potential for this formation. We believe that unlike the Marcellus, which tends to yield huge returns, but is short lived, we believe that wells in the Utica Shale will result on a much longer well life, and substantially less, if any, salt water. When fracturing the Marcellus there is no way to prevent salt water from the underlying off-trend Oriskiny from coming into the well bore.” CEO Gary Payne continued, “The Utica is isolated in Northern West Virginia and South Western Ohio where some oil has been discovered, which of course we would welcome.”
Currently the price of natural gas is down from a high of as much as $15.00 per dth (dekatherm). Over the past two years the price has hovered in the $2.00 range, but recently we have seen resurgence. Today gas was trading at $3.54. Patriot Energy believes that as the US looks to its natural gas reserves to generate cleaner electricity, the market share for natural gas as an energy source will increase, with the price at the well head climbing proportionately.
Payne added, “Should the manufacturing sector of the economy recover, this too will create an increased demand, and assist in increased pricing for natural gas. Patriot Energy believes that by drilling and developing the shallow oil and reserves in this AOA , and thus having acreage that is held by production, we will be poised to bring the deeper Utica on line when the time is right.”
Patriot’s Food Bank Promotion
West Virginia suffers from a poverty rate of almost 18% which is 5 points higher than the national average and you can help! Patriot Energy has partnered with a local food bank and will be making a donation of $1 for every new “Like” we receive on our Facebook page during the month of November. You may be thinking, $1 isn’t that much. However, a donation of $1 is very powerful to our local food banks. They can turn that $1 donation from Patriot Energy into over $10 of food and supplies for our local neighbors in need. Their large buying power and distribution center allows them to make that $1 donation go further than anyone else!
The temperatures are turning colder and many West Virginia’s, including small children, are going to bed hungry each and every night. Patriot Energy realizes this growing problem and wants to do our part to help our neighbors in need. We are not asking for any money out of your pockets, just the simple task of going to our Facebook Page and clicking that little “Like” button to show your support.
For the entire month of November, every new person that “Likes” our Facebook page, a $1 donation will be made to our local food bank. All money benefits our neighbors and local community. We are asking for your help! Visit http://www.facebook.com/PatriotEnergyWV today and “Like” the page. Share our posts on your Facebook page to get the word out to more and more people.
Patriot Energy is pleased to announce that in conjunction with “County Line” will be sponsoring a fundraiser for a local food bank, Hearts and Hands. “Country Line” is a local country group headed by Patriot Energy employees Glendol and Genette Tallman.
The Hearts and Hands organization provides hot meals for the elderly, which are delivered daily, as well a food bank services for families and individuals who have become unemployed due to layoffs. The event is to be held in Nitro, WV, in late November or early December.
Commenting on this event, Patriot Energy CEO, Gary Payne remarked “The efforts of the EPA and WV DEP to shut down or curtail mining and drilling permits, and pipeline construction, have resulted in many families experiencing a hard time just to meet their daily nutritional needs. We feel that it is our duty to help these folks in any way we possibly can.”
Payne continued, “We have lost several thousand mining jobs in the area in the past few months, and multiple planned pipeline jobs are being held up due to permitting issues relative to excessive environmental regulations. Patriot, the Payne family, and our employees intend to do whatever we can to help our friends and neighbors who are in need of food, clothing, and other necessities. This is just the first in several events we intend to sponsor to help those in our community who are in need”.
Keep checking our website and Facebook for more updates about this great charity event!
Patriot Energy has acquired the former “Clendenin Auto Repair” property located on US 119 1 mile north of Clendenin, West Virginia. The company has also acquired adjacent properties which is plans to utilize as a pipe yard and stock tank site. According to CEO Gary Payne “Our acquisition of these properties will enable Patriot to consolidate its operational and administrative divisions. We will now be able to greatly reduce our operating costs and hopefully increase investor return through reduced overhead, An open house grand opening is planned for mid December 2012.
Patriot Energy today announed that is is in the process of forming its 2012 Drilling Program to be named “Titan Energy Partners. The program is being named for Titan, the largesdt moon of Saturn which has a completely hydrocarbon atmosphere. At this time Patriot is leasing acreage in Kanawha County West Virginia in an area that is a diect offset to a well drilled in 1938 that is still producing an average of 30 barrells per month.
Patriot CEO, Gary Payne and geologist Thomas Ragsdale today met to begin evaluation and selection of prospective Titan Project drill sites. Over 40 surrounding well records are being reviewed in an effort to ascertain the best possiblle locations to encounter productive zones in the Salt Sand of south central West Virginia.