Available Leases

Listed below are nine potential production horizons to be discussed.

Beginning at the deepest:

1. Sligo reef prospect

Of the two attempts to explore this deep zone, both wells were drilled based on unmigrated 2D data and were plugged or abandoned despite good gas shows and log data. Shortly thereafter, the Wheeler #1 well was completed in the Sligo up the trend approximately 20 miles. The Wheeler #1 produced over 32bcf prior to a casing collapse. The logs of the Wheeler #1 look very similar to the Cities Service #2A (well data 2 below). Nueces has 28000 acres of 3D seismic (reprocessed January 2006!) covering this prospect. With improved technology and higher gas prices this prospect has real merit. See well data 2 and 3 for more information on this high potential prospect.

2. Edwards

Successful production exists around the property. Horizontal drilling has improved the economics of the Edwards. See well data 1,2,3. Well one #1 shows significant gas shows in Edwards.

3. Taylor Shale

Wells 1 and 4 had good gas shows and high porosity in core samples in this 300 foot thick geopressured Shale.

4. Olmos

The AWP field 15 miles to the north has been a prolific Olmos find. See well 4 for best data.

5. Escondido

This formation is a large producer in LaSalle County. See Wells 5 and 6 for data.

6. Wilcox Upper and Lower

The property is surrounded by production from the Wilcox. Reprocessed 3D should give good leads. A number of wells had shows in the Wilcox, that at current pricing are probably economic.

7. Queen City

Twenty wells on a two small structures just north of our property have yielded approximately 900,000 barrels of oil. The 3D seismic shows some small structures in the Queen City.

8. Yegua – Shallow gas sands

Shows have been seen throughout the property. See 7 for more info. Shallow seismic might better identify most productive prospects. Four shallow (900′) Yegua gas wells were drilled in the 1990’s. Two of the wells produced around 200,000 mcf.

9. Shallow oil fields

See data package 7 for more info about these successful fields and future possibilities.
The Munson field was a small half section field that was water driven. Open hole completions and poor water disposal techniques (originally developed by several competing operators in the 1930’s, operators were disposing of the water in open hole completions on each lease) left significant oil in place. The Munson field was plugged out in the early 1970’s. New wells with perforations in the top of the zone should extract significantly more oil. The Miranda sand in the Rodriquez field located on the property has produced approximately 1,900,000 from 400′. This shallow zone does not have a good water drive, so it is difficult to get good recoveries. There are several thousand acres of oil laden sand, North of the existing field that are waiting for the proper production technique. Shallow seismic might identify new prospects.