US Oil & Gas Production – Illinois Basin
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Tina Vital | Managing Director
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(917) 432-8474
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OVERVIEW
Dover Energy is a privately held, US-based oil and gas operating company. While Illinois remains the core operating focus, Dover is also developing complementary mineral and growth strategies beyond the basin, leveraging its operating, technical, and land expertise across a broader U.S. footprint.
Seeking $16 million of senior secured debt to refinance existing field-level debt and fund a low-risk development program across its operated Illinois Basin assets. The strategy prioritizes capital efficiency, rapid payback, and downside protection, while offering meaningful upside through improved recovery factors.
- Focused Illinois Basin exposure – wholly-owned and operated positions in a shallow, conventional oil field characterized by long reserve lives, low decline rates, and modest operating costs; mature asset base supports stable production and near-term cash generation, providing visibility on returns and flexibility in capital allocation
- Low-risk production growth – production expansion driven by proven, repeatable initiatives including waterflood optimization, re-perforations, equipment upgrades, artificial lift upgrades, and selective low-cost infill drilling
- Capital-efficient development model – incremental investments deployed into existing infrastructure and known reservoirs, avoiding the geological, execution, and cost risks associated with unconventional drilling
- Hands-on field execution – direct operational control enables rapid decision-making, tight cost management, and continuous optimization of field performance
- Experienced management – deep experience in conventional reservoir development, field operations, land management, and upstream finance, with a track record of acquiring and improving undercapitalized assets
OPPORTUNITY FOR SMALL OPERATORS
The Illinois Basin is a mature oil province where shifts in upstream capital allocation have left shallow, conventional assets underinvested despite stable production and cash flow. As larger E&P companies have prioritized scale-driven shale and offshore developments, many Illinois Basin fields have been deprioritized for portfolio reasons rather than asset-level economics, creating an attractive environment for focused conventional operators.
- Capital migration away from conventional assets – upstream capital has increasingly shifted toward large-scale shale, offshore, and energy transition projects, leaving smaller, shallow conventional fields undercapitalized
- Attractive underlying field economics – shallow drilling depths, low decline rates, established infrastructure, and a highly favorable fiscal regime (production tax ~0.1%) support predictable cash flow and rapid payback from targeted capital programs
- Opportunity for focused owner-operators – hands-on operators with direct control and disciplined capital deployment; positioned to execute incremental, low-risk production enhancements across proven reservoirs
- Compelling risk-adjusted profile for lenders – capital deployed into existing infrastructure and known reservoirs at a fraction of replacement cost reduces geological and execution risk while supporting stable cash flow and downside protection
ILLINOIS BASIN – CONVENTIONAL OIL
The Illinois Basin presents a compelling opportunity for senior secured lending against mature, shallow, conventional oil assets characterized by stable production, low decline rates, and predictable cash flow.
- Long-lived reservoirs, shallow drilling depths (approximately 400–1,100 feet)
- Extensive existing infrastructure
- One of the most favorable fiscal regimes in the US with production taxes of approximately 0.1%
- Relatively low operating cost which support faster paybacks on incremental capital and resilient cash flow – providing a strong collateral base for debt financing
SOLUTION/STRATEGY
Dover Energy is executing a low-risk production optimization and infill development drilling program across its existing Westfield Pool assets in the Illinois Basin. The strategy prioritizes immediate cash-flow uplift from existing wells, followed by disciplined, low-cost infill drilling in proven shallow reservoirs.
- Current production of approximately 140 barrels of oil per day (bpd) provides a stable cash-flow base
- Near-term field optimizations (including re-perforations, cleanouts, and infrastructure upgrades) are expected to add approximately 405 bpd, with first uplift occurring within weeks to months
- Second phase includes drilling up to 50 shallow infill wells, adding approximately 400 bpd, targeting the St. Louis Limestone and Carper Sand formations at modest per-well costs
- Planned production increases are supported by existing reserve estimates and reflect accelerated recovery and development of known reservoirs rather than speculative exploration or unproven reserve additions
- Capital deployment is front-loaded to support early debt service, followed by steady-state operations with higher sustained cash flow and lower operating costs
TIMELINE
- 0-6 Months
- debt paydown, re-perforate, cleanout, and upgrade begins
- first uplift within weeks/months
- 6-18 Months
- complete optimization investments
- drilling of up to 50 wells (St. Louis and Carper)
- 18-24+ Months
- final wells completed
- transition to steady-state operations
CORE ASSET – WESTFIELD POOL, ILLINOIS BASIN
The Westfield Pool is in the prolific Illinois Basin, a mature but undercapitalized hydrocarbon province spanning Illinois, Indiana, and Kentucky. The Illinois Basin ranks among the largest US basins by cumulative production, with more than 4.5 billion barrels produced across over 58 recognized pay zones.
- Asset Advantages
- established, low-risk conventional geology
- shallow drilling depths (approximately 400 – 1,100 feet)
- extensive production history and reservoir data
- favorable fiscal regime (Illinois production tax ~0.1%)
- in-place infrastructure and service availability
- Current Footprint
- 327 operating wells across 17 Dover leases (217 producing; 59 water injection; 51 inactive but capable of production)
- Proved Reserves
- Proved Developed Producing (PDP) – gross oil 2.28 million barrels (MMbbls); net oil 1.91 MMbbls
- Proved Developed Non-Producing (PDNP) – gross oil 2.27MMbbl; net oil 1.90 MMbbls
- Proved Undeveloped (PUD) – gross oil 1.38MMbbl; net oil 1.12 MMbbls
- Estimated PV-9 Valuation (using oil prices range of $58-59 per barrel, over 2025-2029+)
- PDP – $16.7 million
- PDNP – $28.4 million
- PUD – $19.0 million
MANAGEMENT
Mark Wilson – Founder, Chairman, President & Chief Executive Officer
Over 37 years of executive leadership with strong record of building, scaling, and restructuring oil and gas businesses across global markets. Founded Dover Energy in 2011, focused on US-based exploration & production opportunities. Former Chairman, President & CEO of Northstar Energy and Coronado Resources; senior leadership roles at Williams Companies, Koch Investment Group, and Flint Hills Resources. Board experience includes Independent Director at Coldstream Energy. MBA from Harvard Business School; BS in Chemical Engineering (Summa Cum Laude), Oklahoma State University.
Roy Snively – Vice President, Dover Illinois
Over 40 years of oilfield services for US-based natural resources companies. Since 2012, Vice President of Operations for Dover Illinois I. Previously served as Operations Manager for Horizontal Systems and Horizontal Systems Drilling; Manager – Sales and Purchasing for M&M Pipe & Supply; and head buyer for various oilfield service stores. BA in Business Administration, Eastern Illinois University.
Roberto Bencini – Senior Vice President (Geosciences) & Chief Technology Officer
Over 48 years of multi-disciplinary experience in the energy sector as a geologist. Since 2022, Senior Vice President – Geosciences for Dover Energy. Former Chief Geologist at LASMO (now ENI) and senior geoscience roles at Gulf Oil E&P. Founder of GA.I.A. srl and Technical Director of Echo Energy plc. Advisor to the European Commission and World Energy Council on petroleum geology, CCS, hydrogen storage, and geothermal energy. MS Earth Sciences, University of Pisa.
John Hopkins, CPA – Financial Controller
Over 20 years of financial accounting experience across the energy sector. Since 2011, Controller for Dover Energy. Previously served as Controller for Northstar Energy and Coronado Resources. Certified Public Accountant (CPA). Master of Accountancy from University of Arkansas. BS in Business Administration in Accounting, University of Arkansas.
FOOTNOTES:
CORE ASSET – WESTFIELD POOL, ILLINOIS BASIN
(1) Dover Energy – Lipparini Consulting – Westfield Oil Field County Clark IL – Est Reserves Future Net Revenues – 250401
SPECIFIC RISKS
Financial models and other supporting information regarding historical data, hypothetical target returns, contextual analysis, and other pertinent matters will be made available to prospective investors upon request. There is no guarantee of success, and there is a potential for loss of your investment.
Risks related to liquidity
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- Delayed or limited access to capital could slow the pace of optimization and development activity
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Risks related to commodity prices
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- Oil price volatility may impact cash flow and debt service capacity
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Risks related to operational
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- Higher operating costs, equipment constraints, or aging infrastructure could affect production performance
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Risks related to the key person risk
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- Lightly-staffed and expertise is concentrated in a few key personnel; expansion will require finding experienced personnel to fill open new positions
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Risks related to regulations
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- Changes in environmental or oil and gas regulation could affect operating costs or timelines
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Risks related to capital markets and private securities
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- Private securities are speculative, illiquid, and carry a high degree of risk – including loss of the entire investment
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