Barfield #2 Duval Co. Texas
BARFIELD & BIG FOOT
Starr County, Texas
LOCATION: South, Texas
PROPOSED TOTAL DEPTH:
Wilcox Hinnant: 12,500’TVD; directionally deepen well from 10,000’ to 12,500’ TVD. Offset well was temporarily abandoned with 9 5/8 casing @ 10,000 feet.
PRIMARY OBJECTIVES: Wilcox 12,400’ Hinnant sand;
POTENTIAL RESERVES: Wilcox 130 BCF. 4-20 BCF/well, 1500 acres, lease 1,240 key acres.
EXPECTED INITIAL FLOW RATE: Wilcox; 10-20 MMCFD.
AVERAGE NET REVENUE INTEREST and BURDENS (8/8): 72% or higher contingent on base lease terms.
TERMS: Pay $50,000 prospect fee, $150,000 for 10 squares 3-D (in operators name). 3% ORRI to generators and Teal. 5% carry to the tanks, to Teal Energy USA, Inc. on first well, five % BIAPO on second well and option to participate ground floor in subsequent wells on a well by well basis.
PIPELINE: 8” Tejas Gas 4,000’ West ANALOGS: Bob West, Lopeno, Arcos.
INITIAL PROJECT COST FOR COMANCHE PROSPECT ONE DIRECTIONAL DEEPENING TO SALES
$ 50,000 PROSPECT FEE
$ 300,000 LEASE, LESS IF SHORT LEASE/OPTION $150,000
SEISMIC TO SEITEL $10,000
LEGAL AND BROKERAGE $2,000,000
DIRECTIONAL DEEPENING, AND COMPLETION $ 400,000
PIPELINE & TAP (PIPELINE $150,000, TAP $250,000)
$ 90,000 CONTINGENCIES
$3,000,000 ESTIMATED PROSPECT COST AND INITIAL DIRECTIONAL DEEPENING WELL COST TO SALES
GEOLOGY AND GEOPHYSICS:
The prospect is a downdip Wilcox Hinnant prospect located on a large 3-D seismically defined structure just southeast of the Wilcox Flexure. The prospect is based on twinning a Hinnant penetration which encountered 18-21 feet of high porosity (22% average, 28% max) and permeable sand just below 12,000’. A partner in the well attempted to twin the initial well, however encountered fault just above the target sand faulting the reservoir out of the well. Later another company re-entered the initial borehole and produced at significant rate (5-8 MMCFD) before the tubing sanded up and they completed up the hole in the Queen City.
Reserve potential will be on the order of 5-12 BCF for the first well depending upon bottom hole location. Sand thickens Westward from 20 feet in the key well No 1 to 200 feet in the Key well No 2. Well reserves as great as 24 BCF/well are possible on the west side of the prospect. The prospect reserve potential ranges from 80 to 130 BCF for the first Hinnant sand. Drainage is estimated at 160 acres.
Secondary objective: The Queen City is mostly developed by Thorp, but the 3-D survey has defined a few low risk Queen City locations gaining structural relief to two productive Queen City wells located 500 feet apart which are reported to have produced 1.4 and 1.1 BCFG.
MARIE H. LLANOS/PANDURA
UPDATING PANDURA SUMMARY & TERMS
PROSPECT: Steamboat:Jim Hogg County No pipe Queen City 4 MMBO 50 BCF
PROPOSED TOTAL DEPTH: 8200 feet Queen City or 12,900 feet Wilcox Hinnant
PRIMARY OBJECTIVE: Queen City Sands, “no pipe”, and Wilcox Hinnant
POTENTIAL RESERVES: 4 MMBO + 50 BCF QUEEN CITY(192,000 BO/well for Queen City-2,000 acres); 50-100 BCF WILCOX (5-10 BCF/well-900-1200 acres)
EXPECTED INITIAL FLOW RATE: Queen City 100-200 BOPD & 2-3 MMCFD and Wilcox 10 MMCFD with frac.
DHC ESTIMATED: $ 741,000 QC (no pipe) and $4,000,000 Wilcox COMPLETION: $660,000 QC and 1 MM Wilcox.
ACRES UNDER CLOSURE: Approximately 2,000+ acres Queen City; 900-1200 acres Wilcox.
AVERAGE NET REVENUE INTEREST and BURDENS (8/8): NRI shall be 100% of leased interest less the Mineral Owners’ royalty and the Teal Group’s 3%. Most likely 72% (if mineral owners royalty is 75%).
TERMS: Pay lease, legal and brokerage costs; pay a prospect fee of $50,000 to Teal Energy; and pay about $100,000 with field tapes for 73 for miles of seismic (license goes to Operator). Carry Teal 5% to the tanks on the first well, and Teal has a 5% BIAPO on the second well. Teal has a well by well option to join for a 5% ground floor working interest.
WORKING INTEREST AVAILABLE: 50-100%.
GEOLOGY AND GEOPHYSICS:
The Steamboat prospect is a seismically defined crest ally faulted rollover structure lying east of the main Wilcox flexure. It is comprised a Queen City and a Wilcox Hinnant and Cook Mountain objectives which should be tested with separate wells. An antithetic fault forms a trap for a Wilcox gas accumulation discovered and tested in the mid-1980’s. This well tested 3.5 MMCFD without fracture stimulation from a Wilcox Hinnant sand below 12,000 feet. Seismic interpretation indicates the trapping fault for the Wilcox gas accumulation migrates east of the Wilcox location and should form a similar antithetic trap in a section of well-developed Queen City and Cook Mountain sands. There is greater than 60 feet of sand with >15% porosity in the off-structure Sante-Fe Helen No 1 giving upside of three BCF and 100,000-300,000 BO/ crestal wells. The Wilcox Hinnant sands have a blocky log character and may be a turbidite feeder channel facies, similar the prolific Travis Ward Field sands.
Additional 2-D or a 3-D seismic survey should be acquired over an area covering approximately 20-30 square miles to adequately image the deep structure before drilling new Wilcox tests (The existing Western shoot could be extended by about 15 squares as an alternative). Two million is a good estimate for the cost of a 3-D survey.
Subject to prior sale.