Blue Chip Oil, Inc. is an independent Colorado Corporation, privately owned, oil and gas company founded in October of 1984 by Timothy S Hager. Blue Chip Oil, Inc. is engaged in the exploration for, acquisition, development, and production of crude oil and natural gas. Since it's inception, Blue Chip has been an oil and gas operator in Colorado and is engaged in daily oil and gas property operations and management. The company’s current activities are principally conducted in the Wattenberg Field of Colorado’s Denver Julesburg Basin. One of the most attractive features of Wattenberg is the presence of multiple formations. In a drilled section only 4500 ft. thick there may be as many as 8 producing formations. At least three, the Niobrara, Codell, and J Sand are considered blanket zones. This makes drilling in Wattenberg relatively low risk from the perspective of finding oil and gas reserves with around 98% of the wells drilled encountering sufficient reserves to be considered economic producers.
Blue Chip started acquiring leases in the Wattenberg field in the early 80s and has continued to do so over the past several decades. Having drilled vertical wells on all of the leases Blue Chip now has established a position in the basin to take advantage of the new horizontal drilling and fracing technology. All of the leased properties have the presence of the Niobrara and Codell formations. This gives Blue Chip the potential to drill, or participate in the drilling, of at least 100 horizontal wells. The properties have long reserve lives and predictable production profiles. In general, these properties have extensive production histories and production enhancement opportunities.
From inception Blue Chip Oil, Inc., through its president Tim Hager, has focused on consolidating ownership of the properties and developing increasingly efficient operations. Tim graduated from the University of Nebraska in 1980 where he was a quarterback for the 1979 football team. Blue Chip Oil, Inc. has grown nicely from factors such as low production costs, efficient operations, technological advances in the field, and higher prices for the products. These advantages, combined with Tim’s years of experience in the basin position Blue Chip to increase reserves, production, and cash flow through development projects with a focus on projects near currently owned productive property.
The Wattenberg field is in the early stages of a growing play and industry,related to the utilization of horizontal drilling through the Niobrara and Codell formations. Blue Chip Oil, Inc. is in the midst of a two stage plan to establish drilling and completion funds through private investment, and increase oil and gas production from it's properties through horizontal drilling.