Chermac Energy Corporation was incorporated under the laws of the State of Oklahoma in 1982 to provide services in petroleum engineering and oil/gas lease property operations. Chermac Energy Corporation is a Registered Petroleum Engineering firm in the State of Oklahoma since 1996. Due to the volatility of oil and gas prices, Chermac Energy Corporation has continued to diversify its holdings. In 1987, Chermac Services Corporation, a precision measurement calibration laboratory was opened and in 1999, Chermac Energy Corporation started development of renewable energy wind projects in Oklahoma.
Chermac has acquired, developed, and reviewed oil and gas properties in Oklahoma and the Texas Panhandle for 26 years. Its experience includes complete drilling and completion engineering services for those areas. In 2006, Chermac was responsible for $15 million in drilling/recompletion proposals and/or workovers for its clients. Chermac has designed, constructed, and maintained pipelines for high gas pressure, low gas pressure, as well as salt water. Chermac has been responsible for the day-to-day engineering operations for over 500 wells for its clients that had daily production of over 55 MMCFGD and 2,000 BOPD. Chermac has been responsible for waterflood design and implementation for secondary recovery projects (largest 130 wells +/- with 650 BOPD and 16,000 BWPD productions). Chermac's experience also includes auditing of existing gas purchaser statements and gas measurements for verification of quality of gas sales. Chermac has provided expert engineering witness testimony at the Oklahoma Corporation Commission and other legal bodies relating to properties in Oklahoma. Chermac also provides reservoir engineering evaluation for producing and non-producing properties in Oklahoma. Chermac maintains $2 million in liability insurance for its oil and gas services. Presently, Chermac is acquiring potential secondary and tertiary recovery projects as well as working on CO2 injection and sequestration opportunities in Oklahoma.
In 1999, Chermac began work on alternative energy wind development in the State of Oklahoma. Chermac has acquired over 100,000 acres of wind lease and easement rights in Oklahoma, over 70,000 acres in Texas, 13,000 acres in Kansas and over 20,000 acres in New Mexico representing approximately 3,000 MW of nameplate capacity that it intends to develop over the next five years. Chermac was the original developer of the Oklahoma Gas & Electric 120 MW Centennial Wind Farm, the Edison Mission Energy 94.5 MW Sleeping Bear Wind Farm both completed in 2007 and the Edison Mission Energy 19 MW Buffalo Wind Farm that was completed in 2008, all in Harper County, Oklahoma as well the Edison Mission 130 MW Taloga I Wind Farm in Dewey County, Oklahoma, completed Spring 2011. Chermac has secured the services of WeatherBank, Inc. to provide verification certification of the company's wind data.
The same principles were applied to wind energy development that applies to oil/gas exploration: commercially productive location, interconnection and transmission availability, surface owner acceptance of energy production from their property, and cost effective project management. Chermac has acquired the most state-of-the-art wind farm design software (WindPro) available as well as established relationships with many engineering and technical service companies to provide a "complete wind development" package for its projects. Chermac has worked in development of precise financial models to provide a complete in-depth economic analysis of each project. Other relationships established by Chermac during the preconstruction phase to bring the projects to operation include GE, ABB, CEG, Vestas, Suzlon, Pioneer Telephone, Tennessee Valley Infrastructure Group, White Construction, Enercon, Arcadis, Western Farmers Electric Cooperative, C.H. Guernsey, Oklahoma Wind Power Initiative, Western Electric Coordinating Council and Southwest Power Pool.
Chermac maintains $20,000,000 in liability insurance for its wind development activities.