Phillips Lease
New Western entered into a joint venture with RC Oil Co. to acquire a 75 percent net working interest in the Phillips Lease on June 27, 2009. The Phillips Lease is a seven-well plus one saltwater injection re-completion project located in Rogers County, Okla. One of the wells on the 150-acre leasehold is a saltwater injection well. The Phillips Lease, similar to the Glass lease, is a recompletion project with plans to produce the Bartlesville formation. According to RC Oil Co., these seven wells are scheduled to be in production by the end of November 2009 and should produce more than two barrels each per-day. This eliminates the risk normally associated with new drills. The lease is located in an area surrounded by proven and long-lasting production. In addition to re-working and re-completing the wells, New Western is planning an acid frac, sand frac, or gas gun stimulation treatment for each well in the program, which will greatly enhance our daily production. Additionally, with 150 acres to work with, the Philips Lease offers a number of outstanding drilling opportunities and substantial reserves. New Western has plans for drilling two new wells on this lease in the near future.