Oil and Gas Activities
K2 Energy owns 10.68% of Trey Resources I, LLC, which is an oil and gas producer based in Texas, USA. Trey Resources has expanded substantially its operations and has increased its acreage by 190% from 6,700 net acres to approximately 19,000 net acres, predominantly in Texas and Oklahoma. This has been achieved by way of acquisition of additional areas with associated oil and gas production.
Production generated from the acquired assets at 31st March 2015 is above 500 BOEPD (Barrels of Oil Equivalent Per Day) net and has gradually increased as development of the acreage progressed.
The current drilling program, including horizontal wells has recently completed, with two of these wells being quite promising. Trey Resources is seeking approval for water disposal wells, to enable the horizontal wells to produce optimally. Oil and gas prices remained depressed, with oil price hedges being in place for much of the current production.