Upon making his initial discovery in 1992, the founder of Numatex, Inc, Thomas J. Wiley, Sr, observed the ability to “see” any and every oil reservoir in the earth from the surface at any depth and to examine the properties of those oil reservoirs individually, without any interference with one another, and without any adverse influence or restrictions by sediments, rocks, fluids, minerals, or gases within the earth and under a variety of weather and solar conditions. Following a theory, in 1995 Mr. Wiley submitted a variety of fluid specimens from oil wells 200 miles apart to a laboratory by which to determine their molecular breakdown by gas chromatography with mass selection.
He was right. What came back was a list of molecular combinations (compounds) in those various oils which can only be described as their “nuclear fingerprint.” Acting as a whole, various hydrocarbon compounds generate a nuclear magnetic response which can only be measured, interpreted, and applied to earth examination through a combination of basic geology, the correct physical use of NMR, and experience. Let us emphasize EXPERIENCE.
Working exclusively with his initial discovery, Mr. Wiley drilled his first successful oil well in Ohio County, Kentucky, in 1992, predicting a substantial oil zone in the Mississippian Jackson sand and, just as importantly, a less substantial zone in the Paint Creek. He also predicted oil would not show up in any other zones common to the area. He was right in all cases. The 12-foot Jackson logged at 18% porosity with good permeability, and the Paint Creek showed less oil and logged “tight”. The Jackson well came in at 75 barrels per day and is still producing. It became obvious to Mr. Wiley that what he had observed on the L. M. Wigginton lease was based on tests he had never seen and had never heard of within the oil industry. He knew what he was seeing, but he did not know that it was NMR until three years later and needed to be patented. Believing a new service to the oil and gas industry was being born, Mr. Wiley immediately began to acclimate himself to the entire Illinois Basin of Central Illinois, Western Indiana, and Western Kentucky.
Using his own money, he drilled two more wells and learned the hard way that he had not correctly anticipated their results. While again hitting the Jackson sand, in both cases the wells were plugged due to low porosity and permeability. A third well was drilled in Spencer County, Indiana, hitting two of the three zones Mr. Wiley predicted, but was also plugged due to low porosity and permeability. He was not deterred. Instead of yielding to failure, he factored the experiences into the calculation process of evaluating NMR responses and continued his acclimation process to other areas of the United States, beginning in Texas. Because of his travel flexibility, Mr. Wiley eventually extended his acclimation process from California to Pennsylvania, from Michigan to South Florida, and from Montana to South Texas, visiting every oil field he could get to, always testing, and continuously studying the geological data which would accompany those tests. Today, Numatex claims acclimation to 95% of all the oil in the ground east of the Mississippi River, and 75% west of the Mississippi. The remaining percentages are areas we have not yet visited, but once we’ve been there, we come away with the acclimation necessary to go back at any time and perform oil and gas exploration to the benefit of operators nationwide.
A crown to this claim is the Macondo well in the Gulf of Mexico, which tragically blew out with loss of life, polluted portions of the Gulf of Mexico, and caused cessation of drilling in the Gulf. Today, British Petroleum’s Macondo well is the most famous well in the world for its tragedy. However, the zone producing in that well still exists and is powerfully charged. Eventually someone will want to go back to that zone for its yield. Numatex has made it a point to acclimate itself to that zone and today is the only company in the world which can claim the ability by Nuclear Magnetic Resonance to guide whomever wishes to drill it to its length, width, structural high, and avoid any intermittent faults affecting that zone. Five thousand feet of ocean water and ten thousand feet of earth beneath the sea are no impediment to the magnetic forces of NMR.
In 1996 Mr. Wiley read an article in OIL AND GAS JOURNAL outlining the aggressive geophysical research being performed within a major U.S. oil company. Mr. Wiley contacted the author and was courteously told, “Before our company or any other major oil company will let you through their doors, you have to have your patent in place.” Mr. Wiley contacted his congressman (Jim Talent of Missouri), looking for a federal grant. Congressman Talent pointed Mr. Wiley to the National Science Foundation, where he was told he could get an immediate $50,000, the caveat being that by accepting federal money for research, after seven years the Federal Government could use his technology free of charge and without paying royalties. Mr. Wiley considered his discovery to be worth more than $50,000 and did not seek the federal grant.
Realizing he had to turn to private money, in 1997 Mr. Wiley created a website entitled “THE MOST IMPORTANT ENERGY DISCOVERY SINCE E=MC²,” looking for financial assistance. Inquiries came in from all over the world, predominated by the question, “What are your physics?” Because he was unprotected, Mr. Wiley could not reveal any information pertaining to physics, but the website eventually yielded guidance to Regulation D of the 1933 Securities Act. Within weeks after receiving that information, Numatex, Inc, was born and the Company’s first Prospectus printed in 1998, offering Regulation D stock, emphasizing the need and opportunity to patent the equipment and process of finding oil and gas by Nuclear Magnetic Resonance, the practice of which was still unknown to the industry, except for logging and surface evaluation of rocks.
While Numatex was looking for patent assistance, the industry in 1998 was spending millions of dollars to advance NMR logging technology, and at the time admittedly could “see” only six inches behind a borehole, with the goal of “seeing” forty inches into the zone horizontally with NMR. Consider the contrast. While the industry was studying logging AFTER a well was drilled, Numatex was pursuing the examination of the earth from the surface with accurate predictions BEFORE a well is drilled with recommendations of where it should be drilled or should NOT be drilled, how deep, and with reasonable predictions of outcome.
The Company’s 1998 Prospectus and Business Plan worked. Our original investors were people with whom Tom and Rose Wiley had done business for over twenty years. With their confidence in the Wiley family business, Gateway Stamp Company (www.gatewaystamp.com), investment came from private individuals whom Mr. Wiley realized he would have to rely upon after his unsuccessful inquiries into industry and federal support. Once investment began coming to Numatex, Inc, the website “THE MOST IMPORTANT ENERGY DISCOVERY SINCE E=MC²” was temporarily retired from the Internet, enabling the Company to pursue its research and development with private money under industry radar, in view of patenting its claims before anyone else.
It’s one thing to have a theory and make a claim. It’s another thing to prove it, and the only way to prove the claim of “seeing” oil in the ground and further evaluate NMR responses is to drill. With the infusion of new money, Numatex, Inc, drilled its first well in 1999 to the Mississippian Warsaw near Maceo, Kentucky. Initial NMR tests led the Company to believe it would be prolific. However, the opposite occurred. The well was “tight” all the way down with only one oil show with low porosity and permeability, leaving Mr. Wiley with another problem to solve. Turning lemons into lemonade, the Bobbie Burdette #2 was the time and place Numatex learned how to detect faults in the ground, to where the Company came away with the technology that determines faulting in the ground in any direction and at any depth by age of rocks, to where we do not recommend anyone drilling an oil or gas well inside a ten-acre square faulted on all four sides, as was the Bobbie Burdette #2. This location became confirmation of phenomena Mr. Wiley had seen in Indiana and Texas (described below under FAULTING INTERPRETATION), leading to the conclusion and effects of NMR’s fault-reading capacity and interpretation. As a result of that well, one other problem was left to be resolved – after success on the L. M. Wigginton property, how can a wildcat location such as the Burdette #2 be determined by NMR to be so highly prolific only to turn out to be so dry? The answer came TWELVE YEARS later and is described below under ANOMALIES.
In 2004 Mr. Wiley was introduced to a landowner in Webster County, Kentucky, Mr. Jerry Norvell, who had long dreamed of seeing an oil well on his 69 acres. Upon examination of his property, Numatex leased it, and after a year of attempting to raise the money, Numatex commenced the Jerry Norvell #1 with enough money to drill the well to the Mississippian Warsaw as the primary target and Ft. Payne (3,850’) for further analysis, but not enough to finish it. Using Nuclear Magnetic Resonance, Mr. Wiley determined the well would encounter thirteen zones of oil to the Ft. Payne, including some which were not known to produce in that area. Mr. Wiley prepared a “Prediction Chart,” detailing his predictions of the oil zones which would be encountered, the anticipated porosity and permeability of each zone, initial recovery potential, and the zones commonly known in that area in which NO OIL would be encountered, and mailed it to the Company’s stockholders. He was so confident in the outcome of the Norvell #1, he directed four 210-barrels tanks to be erected before #1 was commenced. Mr. Wiley correctly predicted eleven oil zones, including their measureable porosity, with two not showing, and was 100% correct in the zones which would NOT show any oil. (SEE OUR PREDICTION CHARTS BELOW FOR THE NORVELL #7, #8, and the PURYEAR #3, TO BE DRILLED IN THE SPRING OF 2013).
With that success, the Numatex stockholders provided enough money to finish the well and immediately drill a second, which was likewise predicted by chart and mailed to the stockholders. Once again, Mr. Wiley was correct eleven out of thirteen calls, including zones which did not occur in #1, and again was 100% correct in his calls for non-shows. Once again the stockholders responded to where a third well was immediately commenced. A third prediction chart was mailed to the stockholders, and once again the well was eminently successful, encountering a flowing well in the Mississippian O’Hara. The stockholders continued to respond, and a fourth well was drilled, which became historic as the largest well in Kentucky at the time and the second largest well in the entire Illinois Basin, flowing the equivalent of 3,000 barrels per day (choked back to 200 bpd) from the O’Hara, and continued flowing for 161 days without a pumpjack. Because of Mr. Wiley’s anticipations, the Company’s flowline had been previously routed from #3 to within 120 feet of the #4 location, including a connecting valve. The fourth Norvell well was perforated through 5 1/2”casing at 8:00 A.M. Oil flowed to the surface within three minutes into swab tanks. The 120-foot flowline was completed to the awaiting connection valve within hours, to where Numatex was selling the oil by midnight. Contrary to public and political opinion, it does not take five years to complete many of the thousands of potential “shallow” wells in the United States, nor most other wells which provide 75% of all the oil produced in the United States.
With the success of the Norvell wells, Numatex leased three adjacent properties and with stockholder support and the use of its own oil revenues drilled seven wells in 2005 and 2006 on those properties. In each case Mr. Wiley provided his stockholders with a prediction chart. Out of the eleven wells drilled by Numatex in 2005 and 2006 near Poole, Kentucky, over 100 shows of oil and gas were encountered. Mr. Wiley’s NMR predictions were 85% correct, and only three zones of oil showed up by surprise. One well was plugged but will eventually be re-opened and deepened. Those wells are producing from seven different zones with reserves behind the pipe. Since 2005 they have produced in excess of 80,000 barrels of high quality oil, all from only 100 acres of drainfield. As with the Norvell, at many of those seven wells Numatex has prepared connecting valves along its flowlines in anticipation of future success. NMR tells us there is much more oil to be found from numerous local zones on those leases, as well as in deeper zones not common to the area but common to the Illinois Basin. The Norvell #7, #8, and Puryear #3 Prediction Charts below perfectly illustrate how oil deposition can be very fickle at locations within 1,000 feet of each other. Our intent is to prove to the industry that NMR can provide you thousands, if not millions of barrels of bypassed oil on your leases.
Within the context of nationwide oil production, 80,000 barrels of oil over seven years is meager. In context, however, those 80,000 barrels of high quality oil have provided one tank of gasoline for 46,000 cars at 18 gallons per car, not to mention diesel fuel for trucks and 232,000 gallons of airline fuel, mostly from one 69-acre farm. To fill each of those tanks would create a gas line 156 miles long, and at five minutes per car working around the clock would take 160 days, or 5 months to fill each tank. While 80,000 barrels of oil is not newsworthy, a 156-mile gas line certainly would be. If Numatex had not drilled those wells, those 80,000 barrels would still be in the ground due to lack of drilling in the area. How many small farms and ranches around the United States contain similar potential from multiple pay zones? How many operators are sitting on top of reserves they don’t know they have? The fact is, Numatex plans to drill even deeper wells on the four properties making up the Webster County block and has staked several more locations on those properties for offset and infill drilling. This Company’s intent is to maximize oil and gas production from every property it examines by Nuclear Magnetic Resonance in view of proving that America has more oil than has otherwise been estimated.
Since 1998 Numatex, Inc, has examined extensive areas of the Illinois Basin for future production, as well as in every area of the United States to which we have traveled for acclimation. The Company’s immediate plans are to drill within its own area and to pursue business relationships with operators nationwide for the NMR evaluation of their leases.
In the interest of transparency and truthfulness, Numatex’s main target in each of its 2006 wells was the O’Hara limestone. What became much of the Company’s dilemma from 1993-1999 and again in 2006 with “Anomalies,” as described below, the O’Hara was encountered only twice in the seven new wells and both with low porosity, all within a few thousand feet of the prolific #4. With an 85% “success” rate in the first four wells, how could we “miss” the O’Hara? This last major grasp of NMR interpretation remained elusive until 2011, barring the Company’s ability to file a legitimate claim for patent protection and the qualifications to serve the industry with more than 85% “success”. Do NOT skip the ANOMALIES paragraph below! It is one of the most important paragraphs of this site.