Offshore Platform Comes Online in 48 Hours
City Capital Corporation (OTCBB: CCCN)
City Capital Corporation sees opportunities where others see risk. Being at the right place at the right time makes all the difference.
City Capital has purchased an offshore gas well just off of Louisiana. This drilling platform and the associated rights were owned by a consortium that threw in the towel after Katrina. City Capital hired Kimbrell and Associates from Baton Rouge, Louisiana, to evaluate the gas reserves in place on a rig known as “West Delta.”
“West Delta” was damaged by Hurricane Katrina. The first thing City Capital did was to find the most experienced Oil and Gas Engineering firm in southern Louisiana. That was Kimbrell and Associates who are fully certified members of the American Institute of Professional Geologists and William Clay Kimbrell, P.E., C.P.G. a registered professional engineer. Link here for image of platform.
Kimbrell and Associates certified the reserves for West Delta to be $38 million based on the conservative price of gas of $5.00 a cubic foot. At this time the spot market is offering $7.38 a cubic foot for gas. In consideration of the extensive reserves City Capital through Harvey E. Lynch began an important new division in the oil and gas industry. With the certified oil reserves at $38 million the decision to rework the well at a cost of $200,000.00 to $270,000.00 was determined to be a prudent course of action.
The determination was a new compressor as a result of the damage from Katrina. The down hole area was not impacted by Katrina. $270,000.00 was spent reworking the platform and West Delta, comes on line this Wednesday, in south Louisiana on the Gulf of Mexico.
City Capital manages its fund by having no paid employees. All staff requirements are performed through contracts with other entities.
Stay tuned as we examine the oil well bought from this same consortium…. and the alternative energy business that has caught City Capital’s eye.
Source: CCCN
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