There are "Wildcatters" in the business looking for the "big play" oil well, and then there is K & M Oil with a different approach to oil and gas. Our approach is to attack oil fields that have already been established and were abandoned. Thousands of oil fields were capped in the 80's when oil prices fell to the floor and that's where we come in. Working hand in hand with the Dept of Natural Reso
urces for each respective state, we have the opportunity to walk onto these previously established oil leases. We then do our geology on the lease, then put in the necessary new equipment and have them start producing again for a small dollar amount for this industry. Another advantage is we know what their previous production left off when they were capped, we use new technologies to ensure increased production when the wells are brought back online. Most of the time there is still equipment on the lease that is still functional which helps us as far as costs on each project. Each reworked well will produce 3-10 barrels a day and with the prices going as far North as we anticipate over the years, these smaller producing wells are gold mines once they are reworked. The re-worked wells typically will start to drop off production over a five year period and then we sell them at a rate of 30,000-50,000(depending On market value of crude oil) dollars per barrel a of production. K & M Oil does drill new wells on our leases as well but we are not wildcatting, we are strictly executing vertical drilling directly to the formation that we are currently producing from other wells on our leases. Those can typically come in about 10-20 barrels a day, sometimes more but we like to stay conservative. Horizontal drilling is also an opportunity for K & M oil in the near future. The oil and gas business has lost respect over the years as the industry has been flooded with some very dishonest people promising the world and not delivering. We hope to change that by promising the real and conservative numbers and then hopefully exceeding our employees, owners, and private investors expectations. We just stick to the business plan, it works. We go about our business with a sense of pride and honor that is not too common in the industry and we have been a breath of fresh air to our vendors, employees, Dept of Natural Resources, and our Lessors(Land Owners/Own Mineral Rights). We hope to bring the honesty back to the industry one project at a time and we concentrate most of our business in the Illinois basin in the states of Illinois and Indiana. Our Midwest people have been very helpful and excited to help us grow and have assisted above and beyond our expectations so far. With the business plan that we have and the management team that is in place, the sky is the limit for K and M Oil. We just like to take it one project at a time to ensure a successful project a 100% of the time. This business is about relationships and diligence, 2 things that K and M Oil hopes to continue to excel in.
