Internship Presentation: Benjamin Herrera

 Windsor Energy is a privately held oil and gas company headquartered at Oklahoma City, Oklahoma. Began in 2001 by acquiring 5,700 acres in the Powder River Basin  Develop & Produce high quality oil and gas reserves in West Texas (Permian Basin), North Dakota & Montana (Williston Basin), Wyoming (Big Horn Basin), and mid continent regions of Colorado, Oklahoma, and Texas.  Operates through partnerships with companies including Lasso Oil & Gas, Spur Energy, and Twister Partners.

 Primary strategy is to develop reserves in a safe and environmentally friendly manner.  To profitably grow its business through both strategic acquisitions and the drill bit, and to provide significant financial returns to owners.

 To understand the entire workings and operations of the company itself as it gradually grows  Internship should cover a variety of areas ranging from work-overs in older wells, drilling & producing new wells, stimulation & fracturing re- entries, contract lease obligations with mineral rights holders.

 Windsor Energy being a small independently owned company is not globally established like Shell, Exxon, and Chevron so its hard for the company to make a name for itself. The company is however coming along in its own right and fighting to make a name for itself in the oil & gas industry.  Expectations are high as the company continues to acquire leasing rights with mineral rights holders.  With continuing expansion in operations for drilling and production of oil & gas, Windsor Energy seems to be on the fast track in nationally providing its services in the continental United States.

 Due to the company’s small stature, Windsor Energy, at times exceeds its abilities as a reliable producer.  A stretch in its core functions at times leads to a lower than normal production and processing of natural resources.  Lapses in the quality of workmanship has led to either costly repairs or poor output

 My supervised internship at Windsor Energy was a very sound experience.  My supervisor seemed genuinely eager to have me aboard and working with the company.  Primary location of the internship was based out of the Spraberry & Wolfberry oilfields.  In working with my supervisor I particularly learned a great deal about leasing mineral rights and in re-entries for fracturing and well stimulation.

 In my internship with Windsor Energy, one of the things I learned was negotiating leases with mineral rights holders.  There are basically four basic points that entail standard contract criteria.  1. Bonus and Signing consideration  2. Length of term on lease  3. Annual delayed production provisions  4. Royalties

 Bonus and Signing considerations  Offer a signing bonus to the lease holder for entering into a lease agreement.  The signing bonus is usually an enticement  Bonus amount can vary greatly depending on the area, and whether the commodity of oil, gas, or oil & gas are being leased.  Length of term on lease  It is in the best interest of the company to have exclusive rights to drill for minerals for as long as possible.  Typical Lease can range from 3 to 5 to 7 years  In the lease you want sufficient time to plan, drill, and produce wells without having to violate the lease agreement.  Annual Delayed Production Provisions  Permits the oil company to continue a lease by making yearly payments to the mineral owner if a well has not been drilled according to lease agreements.  As well it allows an extension if a well is drilled but not produced  Royalties  The amount of royalties paid to the lease holder can vary from 20% to 30% depending on the quality of the resources and the amount of work required.

 Fracturing is a well stimulation process performed to improve production from geological formations where natural flow is restricted. Fluid is pumped into a well at a sufficiently high pressure to fracture the formation. A proppant ( sand or ceramic) is then added to the fluid and injected into the fracture to prop it open, thereby permitting the minerals to flow more freely into the wellbore. Once the sand has been placed into the fracture, the fluid flows out of the well leaving the sand in place. This creates a very conductive pipeline into the formation.  Normally fracturing operations require that the fluid be viscosified to help create the fracture in the reservoir and to carry the proppant into this fracture.

 My time a Windsor Energy was HIGHLY beneficial. In the short span of my internship, I was able to learn at a great pace with on hands training and real work related circumstances.  With my formal education coupled with my prior work experiences, I felt very confident in fulfilling my job responsibilities.