Progress Report

Progress Report

Horizontal and directional drilling methods are rejuvenating the Illinois Basin, and Mitchell Drilling is making a significant investment in rigs, personnel, and equipment to meet this demand.

To accommodate the increased pressure needed for horizontal and directional drilling, a new 1005HP PZ-9 Triplex pump is now available on our rotary rigs in addition to our OPI 700 HDL Triplex. A second set of new steel pits with a working capacity of 800bbl includes a new shale shaker and a mud cleaner. These augmentations allow us to serve the requirements of our horizontal and directional drilling clients in addition to keeping pace with the over 100 vertical wells we drill annually.
Continuing with our equipment upgrade, we purchased a 2011 Mack truck and a new float to aid in the efficient and economical mobilization of our four rotary rigs. We also added a new Cat D6-T bulldozer.

Our fleet of Service Rigs increased to seven with the addition of Rig #20. Mitchell Drilling has acquired this second new workover rig in less than three years, furthering our depth of servicing and completing wells in the Illinois Basin. We are the only drilling company adding new Service Rigs in this Basin in over 25-30 years.

While not exactly the Ritz Carlton, our new “Geo Shack” accommodations are a definite improvement over the confines of the “Doghouse”. Designed by our staff for the comfort and convenience of our clients, geologists, and rig managers, the trailers are equipped with two bunk beds, a small kitchen, and desk space. Our new job site offices offer a comfortable retreat to study samples and prepare reports.

Although the Illinois Basin (Southern Illinois, Southwest Indiana, and Western Kentucky) is very mature and much crude oil has been extracted, Mitchell Drilling is bringing new and older wells on-line daily with traditional and directional rotary rig systems. Our central location in the Basin is an advantage in the cost and distance to transport rigs.

Directional drilling lessens the environmental impact on the surface by decreasing the drill-site footprint. Drilling directionally several hundred to a few thousand feet away from a vertical well is also an environmental advantage decreasing the need for additional vertical wells. These new drilling methods are more attractive to the surface owner. New trajectories under the surface are re-routing hard to reach and deeper oil. Although not all wells are commercially viable, the risk-to-reward ratio is generating enthusiastic research in older fields with the potential for attractive yields. Mitchell Drilling pledges to stay on the forefront of new techniques and technologies to more efficiently, economically, and environmentally improve our drilling and completion operations.

Mitchell Drilling is fortunate to have one of the most experienced and loyal group of employees in the Illinois Basin. Our rig managers’ knowledge of the Basin and their expertise in drilling and servicing oil and gas wells are being passed to a new generation of oil industry personnel. New drilling methods and machinery upgrades require youthful minds and muscle, which remains the greatest mountain to conquer. Searching for human resources is as much of a challenge as searching for oil.
This is why I am personally pleased that my son, Ryan, is preparing to be the fourth generation of Mitchells to serve our drilling clients since the 1930’s. With an engineering degree from the University of Tennessee and having grown up in a long line of drillers, Ryan brings new ideas, new energy, and an appreciation for the industry to help us move forward with confidence and fortitude. Ryan will also be a strong supporter and an inspiration to other young people to choose a lifelong career in the energy industry.

Mitchell Drilling is honored to have earned the respect and reputation from our clients as the “preferred drilling company” in the Illinois Basin. We continue to strengthen this trust with a new generation of engineers and geologists and the intelligent methods to produce our energy resources.

Chris Mitchell
President
George N. Mitchell Drilling