APX Energy, LLC operates principally in the Illinois Basin. The Illinois Basin is located in portions of Illinois, Indiana, Kentucky and Tennessee. Major oil production began in 1905 in the basin, and since then has produced more than 4 billion barrels of oil. The basin is composed of predominantly conventional reservoirs that are generally oil prone with small amounts of non-commercial associated gas. More recent non-conventional shale gas exploration in the New Albany Shale has been confined to the eastern portion of the basin. Most oil reservoirs in the basin are considered conventional, although new frac techniques and horizontal drilling are changing the way producers approach the basin.
We are often reminded by a profound statement made by Parke A. Dickey in 1958, a renowned petroleum geologist who stated, "we usually find oil in new places with old ideas. Sometimes, also, we find oil in an old place with a new idea, but we seldom find much oil in an old place with an old idea. Several times in the past we have thought that we were running out of oil, whereas actually we were running out of ideas." We take this quote to heart as we apply new technologies to the Illinois Basin.