As mentioned in our corporate announcement at the beginning of October, there are several projects that Mystic Energy Services has prepared for us to submit to Nowea Energy Inc. for evaluation with the aim of sustainably increasing the profitability and value of Nowea Energy Inc.
These projects range from Indiana to Texas and we have already selected one project that will allow Nowea Energy Inc. to immediately increase both profits and assets at low cost but with a high ownership percentage.
The oil wells that we are focusing on and that we want to acquire are located in the same region of Kentucky where Nowea Energy Inc. already has oil wells, and what we want to mention explicitly is that these "new" oil wells are already producing and therefore contribute immediately to profits and automatically provide a return on investment.
two of the participating wells have no earning power, but were included in this deal because of the existing technical equipment. we will use the existing technology for other Nowea Energy Inc. plants in need of maintenance. for example, one tank will be dismantled and reinstalled on our neighboring field. the technical equipment alone, which we can use for our other plants, will save us around 20,000 USD.
When all "new" oil wells are inspected, reworked and freshly serviced by our "Wellhead Pumper", the production of these wells should increase to over 1,000 barrels of oil per year (or more) and provide a steady and long-term revenue stream.
The area gives us access to 750 acres = 300 hectares (3 million square meters), has excellent potential for drilling additional new oil wells, and with the existing infrastructure (power, road, tank and facilities) will contribute to significant development savings and future drilling costs.
