Black Gold.....Texas Tea
There is a good chance that a pocket of crude oil lies under the HSU campus, and the Abilene City Council approved a permit for Dallas based Cholla Petroleum Inc. to find out. Don’t worry, you won’t see oil wells on HSU’s front lawn; the property is located just north of the Six White Horses Center on the old ROTC obstacle course.
Cholla is a small company that specializes in developing reserves in areas that other companies overlook. Although the odds of developing producing wells are one in nine, the company’s research, and the proximity of working wells just north of the planned drilling site make their investment a good risk. Hardin-Simmons will not incur any development costs, but will receive a portion of the profits if the wells come in. “It’s a win, win situation for everybody,� says Dr. Craig Turner, university president.
Drilling location - the old HSU ROTC obstacle course
If the wells do produce, the University doesn’t expect a financial windfall. The wells are relatively shallow, 3,000 to 3,500 feet, and these wells typically product a medium to low volume of crude. However, Dr. Turner considers any income from the wells a blessing and indicated that the University will use the proceeds to keep costs down for students.
The Texas Railroad Commission has already granted approval for the test wells, and HSU has leased the mineral rights. The City Council’s approval means that drilling will begin immediately. The company gave assurances that the drilling will have a minimal environmental footprint, and will be virtually unnoticed by area residents and the University. The former ROTC obstacle course is now covered in mesquite trees and the operation should be well screened from casual observers.
The operation of working wells on university property, so close to the campus, may be unprecedented and has attracted quite a bit of media attention. Only the working well on the front lawn of the Oklahoma State Capitol building is as unique.
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