The President and CEO of HEC (Ray Holifield) has had the privilege of being able to associate with outstanding oil industry partners in several areas to develop and apply technology, including HORIZONTAL DRILLING. In 1987, affiliates of HEC and Bechtel Investments Corporation formed BecField Horizontal Drilling Services Company in Houston, Texas. It was the first service company in the world to offer reliable commercial re-entry medium radius horizontal drilling techniques and equipment. BecField drilled several hundred horizontal wells during the time Ray Holifield was Chairman and fifty percent (50%) owner.
Advancements in horizontal drilling makes this project possible and very cost effective. HEC has a massive data base for this very prolific area and is combining it with this technology advancement for what he predicts will be the THIRD BOOM in the Giddings Field.
Enhanced Oil Recovery projects have always been of interest to HEC. The company has spent considerable effort within the past ten years in the development of the Holifield Hybrid Lift Systems. It targets thousands of horizontal wells with the goal of producing an additional 10,000 to 30,000 barrels of oil from depleted and non-producing horizontal wells
Through the formation of strategic alliances, Ray Holifield & Associates (RH&A), an affiliate, has drilled or caused to be drilled as consultant, more than 1,500 vertical oil and gas wells in the Austin Chalk Trend of South Texas since 1975. These 1,500 wells (costing in excess of one billion dollars) have produced over 200,000,000 barrels of oil equivalent (BOE) with a value of approximately $6,000,000,000.
In one county of current interest, Lee County, Texas, affiliates of HEC has an extensive data bank, exceeding all others. RH&A has drilled or caused to be drilled 644 vertical wells out of a total of 1,149 vertical wells (56% of all vertical Austin Chalk wells) that have produced from the Austin Chalk and Buda formations located in Lee County, Texas since the Giddings Field was discovered. Many of these vertical wells are being recompleted by re-entry horizontal drilling. RH&A's average for all of their vertical wells in Lee County is 147,936 BOE. That is 4.77 TIMES the average for others. HEC's wells produced an average of 116,935 barrels MORE than competitors' wells. At $25.00 per barrel oil, an average ADDITIONAL Revenue of $2,923,375 went to HOC's associates PER WELL. On the 644 wells, HEC's associates would receive a total ADDITIONAL Revenue of $1,882,653. The total income from these 644 wells would be approximately $2.38 Billion dollars at a cost of approximately $0.5 Billion.