These are exciting times in the Illinois Basin, and the George N. Mitchell Drilling Company is fortunate to be operating at the center of this heightened activity. Not only are we centrally located in the Basin to better serve our drilling clients, we are situated in White County, the leader in oil production in Illinois. Last year almost 10 million barrels of oil were extracted from the state of Illinois approaching $1 billion in sales, according to the Illinois Petroleum Resource Board. Over a million barrels of that production were from White County, equaling over 3000 barrels of oil per day.

This increased activity has generated new revenue opportunities for our clients and an increase in capital investment in new technologies and drilling and service equipment for our company. We recently added a new drilling rig (Rig #9) increasing the number of our rotary rigs to four. With the addition of a Tri-Plex Pump we now have two rigs (#9 and #14) with horizontal drilling capabilities. Our service fleet of Completion and Workover Rigs has increased to six with the recent addition of Rigs #18 and #19.

Investing in new equipment and the maintenance of our fleet are integral to the uninterrupted success of drilling and servicing an oil well. The return for our clients is measured in less time spent on a well which means lower operating costs. Our central location eases the equipment mobilization expense associated with drilling projects which continues to make George N. Mitchell the preferred provider of oil and gas services in the Basin.

Future activity is continuing to look bright for both the drilling of new wells and the workover of old ones. Companies from outside the Illinois Basin continue to contact us requesting assistance relating to drilling and completion problems and the clarification of costs associated with their drilling projects. Having survived decades of price extremes and daily business challenges, the George N. Mitchell Drilling Company has become a trusted source for oil and gas well drilling solutions and service.

From the client side, new Operators bring fresh ideas and inventive technology on how to prospect for oil in the Basin which we welcome and are happy to assimilate into our services. Technology, such as horizontal drilling, is proving itself by accessing old reserves of oil that were once too expensive to reach. Horizontal and directional projects have increased dramatically over the past two years, and we have kept pace with this increasingly successful drilling method by purchasing new rigs and related equipment.

The George N. Mitchell Drilling Company has also been very fortunate to be involved in partnerships with companies in the development of new oil and gas projects. There seems to be a synergy that exists between the Operator and our company which offers greater comfort and security knowing that the service company has a vested interest in the project.

The fossil fuel industry is evolving, as it should. Renewable energy resources, solar and wind power, carbon credits, and other innovations are being tested to lessen our dependency on oil. However, until these new sources of energy are proven, our company’s core competencies are rooted in servicing the oil and gas explorers and producers while keeping an eye on alternative energy opportunities.

Even though the George N. Mitchell Drilling Company is but a tiny contributor in the spectrum of the oil and gas industry, we will continue to find our place in the evolution of energy as we have since the Mitchell Brothers began servicing oil producers over 60 years ago.

Chris Mitchell
President
George N. Mitchell Drilling