The Hailey Tannehill Field is located in southwestern Knox County, Texas, approximately 80 miles northwest of Abilene and 80 miles west of Wichita Falls. It is located on a productive east-west Tannehill trend that extends out of Baylor County westward into Knox and King Counties and is situated on the south flank of the Knox-Baylor Basin.

The Hailey Tannehill Field was discovered by subsurface and stratigraphic work in an area that had seen very little exploration activity since the 1950’s. The reason for drilling this prospect is basic: There was a 50-50 chance for extending an old field that had not been fully developed. The philosophy: There are three sectors involved in prospecting for subsurface channels - 1.) define the channel limits; 2.) find structural highs within these channel limits; and 3.) locate the highest structural and results: A new field discovery with reserves estimated at approximately 2-1/2 to 3 million barrels of oil at a depth of 2500 feet.