Project Types

Development wells are drilled in proven producing areas, adjacent to existing production and within a known reservoir. Because the subsurface geology has already been characterized by nearby wells, development drilling carries lower geological risk than exploratory drilling. These projects focus on efficiently extracting hydrocarbons from a defined resource that has already been demonstrated.

• Drilled within established field boundaries or adjacent to proven production
• Subsurface characteristics informed by nearby well logs and production data
• Lower geological uncertainty relative to exploratory wells
• Costs tend to be more predictable with AFE accuracy supported by offset well data
• Production profiles can be modeled using decline curves from analog wells

Lower risk relative to other well types, but all oil and gas drilling involves the possibility of encountering mechanical problems, underperforming reservoirs, or adverse commodity prices.

Re-entry projects involve returning to an existing wellbore — one that was previously drilled, and in some cases previously produced — to test new formations, deepen the well, or apply modern completion techniques to zones that were not previously stimulated. Workovers address existing producing wells that have declined due to mechanical issues, scale buildup, formation damage, or suboptimal lift methods.

• Existing wellbore reduces drilling risk and cost vs. a new location
• Historical production data and well logs are available for evaluation
• Re-completions can unlock bypassed pay zones using modern stimulation techniques
• Workovers can restore or enhance production in wells with mechanical issues
• Lower surface disturbance and permitting requirements in many cases

Old wellbores may have integrity issues not apparent from records. Results from new zones or stimulation techniques are not guaranteed even with positive analog data.

Prospect generation involves identifying and leasing acreage where VP Operating believes a commercial quantity of hydrocarbons may be present, based on geological and geophysical evaluation, regional production data, and analogous field performance. This stage precedes drilling and encompasses the full process of leasing mineral rights, developing a prospect package, and preparing an AFE for participant review.

• VP Operating identifies and evaluates prospects using geological and production data
• Mineral leases are secured before participants are invited to review the project
• A prospect package including maps, logs, and economic projections is prepared
• Participants review all available data before committing to a working interest
• VP Operating typically retains an operating interest and participates alongside investors

Pre-drill prospects carry full geological risk. Even with thorough evaluation, the only way to confirm the presence of commercial hydrocarbons is to drill. Loss of the entire drilling investment is possible.

In addition to drilling projects, VP Operating assists mineral rights owners with the leasing process — helping them understand their rights, evaluate lease terms, and negotiate with operators. This service does not involve working interest participation; it is advisory in nature and focused on helping mineral owners make informed decisions about their mineral estate.

• Evaluation of proposed lease terms and comparison to market rates
• Review of royalty percentage, lease bonus, and key provisions
• Guidance on surface use agreements and pooling clauses
• Communication with operators on the mineral owner's behalf
• No drilling cost exposure for the mineral owner

Mineral owners who lease their rights receive a bonus and royalty but do not bear drilling costs. They do bear the risk that the operator will not drill, that the well will be unproductive, or that commodity prices will be low.