Nicolas Bures, Magna Bures Oil, talks about the success they are finding in the Illinois Basin.
He also explains how they have been able to lower the cost of an oil well to $75K and how people can invest in the oil and gas industry.
The Illinois Basin is a Paleozoic depositional and structural basin in the United States, centered in and underlying most of the state of Illinois, and extending into southwestern Indiana and western Kentucky.
Magna Bures Oil now has over 2,500 acres of land for oil well developments. Founder Nicolas Bures believes the Illinois Basin has big potential for the land owners and investors.
“We are drilling oil wells and having success at it,” Nicolas Bures said. “For example, there are three wells in the Hardcastle 2 Well Program we recently drilled and completed. All pumps are on time and currently producing crude oil.”
Magna Bures Oil moved into the Illinois Basin when oil prices dropped several years ago.
“We came down here when the oil prices dropped because the cost of drilling wasn’t matching up well with oil prices. Recovery wasn’t as easy as the old days,” Bures said. “In the old days we used to drill one well and if we missed, we just drilled another one because it was $100 oil and it was easy to make your money back.”
Bures added that even at $75 oil, profits can still be difficult in many of the shale plays.
“It’s not as easy to make money at $75 than you think it is,” Bures said. “So we are going to stay in the Illinois Basin for a while. I just don’t see any reason to leave here and take on the risk of other shale plays.”
Keeping the well cost at $75K is a major element in Bures’ profit strategy. Besides the obvious low cost of the well, it creates a system where resources are being leveraged in order to keep costs down and profits flowing.
