Maverick Energy, Inc702 N. JACKSON , P.O. BOX 196 , Robinson, Illinois, United States

Maverick Energy, Inc., is an independent oil company located in Robinson, Illinois. Larry C. Neely is the founder and president of Maverick Energy, Inc., as well as L.C. Neely Drilling, Inc. The Neely name has been synonymous with the oil business for the past 125 years. Larry Neely is the 5th generation of drilling contractors.  Maverick Energy is involved in drilling and exploration along with production of crude oil and natural gas. For a step-by-step definition of oil & gas drilling and development.

World Experience Maverick Energy incorporates old world experience and common sense with modern day technology. Maverick Energy, Inc. is involved in the three main stages of the development cycle: Drilling • Production Acquisitions • Leasing Programs  Maverick Energys primary focus is reservoir evaluation and enhancement. We do this by integrating the following disciplines: 1) land, 2) geology, 3) engineering, and 4) geophysics. A diagram of triangular integration.

Oil & Gas

Maverick Energy is an independent energy company engaged in the acquisition, production and development of proven domestic reserves. Maverick Energy was formed in November of 1984 by its founder, Larry Neely.  Since that first day, Maverick Energy has been aggressively moving to position itself as the premier producer of crude oil and natural gas in the Illinois Basin in the central US.  Through dynamic and innovative contractual agreements with several other industry partners, Maverick Energy has put together a strong development plan that takes advantage of over 76,800 acres of prime increased density locations. This strategy enables Maverick Energy, and its joint-venture partners, to obtain the highest success rate possible in the development of massive natural gas reserves.

Finding Oil & Gas

Fundamentals of Finding & Producing Oil & Gas in the Illinois Basin Hydrocarbons - crude oil and natural gas - are found in certain layers of rock that are usually buried deep beneath the surface of the earth. In order for a rock layer to qualify as a good source of hydrocarbons, it must meet several criteria.

Drilling

Once an area has been selected and the right to drill thereon has been obtained, actual drilling may begin. The most common method of drilling in use today is rotary drilling. Rotary drilling operates on the principle of boring a hole by continuous turning of a bit. The bit is the most important tool. The rest of the rig ( a derrick and attendant machinery) is designed to make it effective. While bits vary in design and purpose, one common type consists of a housing and three interlocking movable wheels with sharp teeth, looking something like a cluster of gears. The bit, which is hollow and very heavy, is attached to the drill stem, composed of hollow lengths of pipe leading to the surface. As the hole gets deeper, more lengths of pipe can be added at the top. Almost as important as the bit is the drilling fluid. Although known in the industry as mud, it is actually a prepared chemical compound. The drilling mud is circulated continuously down the drill pipe, through the bit, into the hole and upwards between the hole and the pipe to a surface pit, where it is purified and recycled. The flow of mud removes the cuttings from the hole without removal of the bit, lubricates and cools the bit in the hole, and prevents a blow out which could result if the bit punctured a high pressure formation. (See the drilling rig to the right.)  The cuttings, which are carried up by the drilling mud, are usually continuously tested by the petroleum geologist in order to determine the presence of oil.

Oil Production

Once an accumulation of oil has been found in a porous and permeable reservoir, a series of wells are drilled in a predetermined pattern to effectively drain this "oil pool". Wells may be drilled as close as one to each 10 aces (660 ft. between wells) or as far apart as one to each 640 acres (1 mile between wells) depending on the type of reservoir and the depth to the "pay" horizon. For economic reasons, spacing is usually determined by the distance the reservoir energy will move commercial quantities of oil to individual wells.The rate of production is highest at the start when all of the energy from the dissolved gas or water drive is still available. As this energy is used up, production rates drop until it becomes uneconomical to operate although significant amounts of oil still remain in the reservoir. Experience has shown that only about 12 to 15 percent of the oil in a reservoir can be produced by the expansion of the dissolved gas or existing water

Operation

When all equipment is in place, the oil may begin to flow into the holding tanks to await pick up. It can be expected that a well will not be in production for certain times due to adverse weather conditions, mechanical malfunctions and other unforeseen circumstances. After the production period commences, it is necessary to incur certain costs in order to bring the oil to the surface. These costs include normal maintenance on the pump and other equipment, replacement of any pipe or tanks as needed, compensation to the operator of the pump, and payment of any incidental damages to the owner of the surface rights of the leased property. In some cases, the oil in a pay zone will be mixed with salt water. In such cases, the oil must be separated from the salt water and the salt water disposed of in a manner which is not harmful to the environment. The water may be hauled away by tank truck but often this phenomenon requires the drilling, nearby the oil producing well, of another well into which the salt water will be pumped. The cost of this water disposal well is normally considered to be a cost of operation. Finally, there may be additional costs incurred in opening up a new pay zone when any presently producing pay zone becomes economically unfeasible. Because opening a new pay zone involves the installation of very little, if any, new equipment, the costs involved therein usually are not very substantial.

Securing Leases

Once a likely area has been selected, the right to drill must be secured before drilling can begin. Securing the right to drill usually involves leasing the mineral rights of the desired property from the owner. The owner may be the owner of all interest in the land, or just the mineral rights. As payment for the right to drill for and extract the oil and gas, the owner will usually be paid a sum call a "lease bonus" or a "hole bonus" for every well drilled on the leased land. He will also retain a royalty on the production, if any, of the leased property. The royalty is the right to receive a certain portion of the production of property, without sharing in the costs incurred in producing the oil, such as drilling, completion, equipping and operating or production costs. The costs are borne by the holder of the right to drill and extract the mineral, which right is usually referred to as the working interest.In many cases the procurement of the lease from the land owner is accomplished by a lease broker who will, in turn, offer and then assign the lease to an operator such as Maverick Energy, Inc. Maverick Energy is very selective in choosing leases for drilling. The lease broker usually retains an overriding royalty on the working interest as compensation for his services. In the case of Mavericks leases, there generally is a retained land owners royalty of 1/8 of all production and a 1/16 overriding royalty on the working interest, retained or granted to one or more persons who may have acted as lease brokers.