What is the Richeson Project?  An independent geologist and one of the most successful in the Illinois Basin at finding oil, has identified a fault running through our Richeson Lease Block.  He recently stated that the Richeson Lease is on the up-thrown side of the fault (113 feet higher than the down thrown side of the fault)  We are estimating 139 barrels of flush production although the geologist recently said that ten wells near us (slightly more than a mile) are beyond flush and still producing in total 1000 barrels a day from all ten wells.  We now have a precise measurement from Patriot Coal a spin-off of  Peabody Coal, who controls the property adjacent to our lease.  They ran cores from the surface of the Richeson Lease to determine how high the upthrust, adjacent to the fault, had risen.  We originally acquired the lease in 1985 and had no idea of the exact location of the fault. 

If you are interested in Participating click on→ Successful Oil Discoveries  near the Richeson, → Aux Vases Sand Structure and → Profit Map.

The potential drilling location is a low risk step-out of approximately 1500 feet from a well drilled in the 80's which is approximately three drilling locations from the fault and that fact makes this a lower risk developmental prospect not a wildcat.  Furthermore, it is already known there is oil there because of oil-bearing sands found in wells north of and down dip to the target drilling site.  Since oil flows upwards through the porous sand stone toward the fault, depending on the permeability, there should be a substantially greater amount of oil adjacent to the fault.

The potentially prolific Aux Vas formation is on Ames' side of the fault and sloping upwards up-dip toward the drilling location and the fault itself.  The target formation should have 20-30 feet of thickness based on wells in the area with little depletion as there have been no wells drilled up against the fault.  an existing coal mine just east of the fault made it difficult to explore thoroughly and economically.  Drilling through an abandoned coal mine requires extra casing to 500 feet with an additional cost.

The Richeson Project will include 3D seismic, which will provide additional confirmation of this exciting geology.  In addition we are still constructing our  web site so the analyzed and interpreted seismic can be reviewed on the net by non-operators.  We also look forward to web cam capability so non-operators can watch the drilling progress live, if not on location.

What about revenue sharing arrangements?

We will be providing a rapid cash payback of your complete contribution to the project. At this point we have determined that you will receive 100% of net revenues and Ames will receive 0% of net revenues until complete cash payback on the unpaid balance. However, after complete return of all your funds, on the Richeson Project, the sharing arrangement will resort to 50/50.

We are using the same oilman’s standard Model Form Operating Agreement Form 610-1989, accepted in the state of Illinois. This is not an offering of securities.  It is not an undivided interest.  The precise amount of the working interest that is sold is recorded in the County in which the operations are initiated.  Furthermore, that interest may be conveyed without the permission of the other working interest owners after the  owners have 10 days to exercise their first right of refusal that is to match your asking price.  This project will exclude underwriting or sales commissions. This is only open to oil corporations, oil people, and  vendors in the oil business, accredited, sophisticated international participants or people who have had a previous history with AOCOT and qualify according to strict suitability standards regardless of their level  of  participation.