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GeoSpectrum is offering for sale the subject prospect located in T9S, R37E, northern Lea County, New Mexico. The primary objective is oil production in the Devonian Formation at 12,300‘ with estimated reserves of 250 MBO and uphole potential in the Pennsylvanian Bough C Formations with estimated reserves of 375 MBO. The Devonian prospect is identified using 3D seismic, well control, and offset production data. The offset well immediately to the west of the prospect has a EUR of 190 MBO from the Devonian. Another offset well to the west of this well produced over 5 MBO from the Devonian before recompleting in the Morrow Formation. The Devonian in this well produced about 200 BWPD immediately upon completion as the well was drilled too deep into the Devonian and encountered water bearing zones before the well was completed. Further to the west a well has an EUR of 57 MBO from the Devonian and is located on a much smaller structure than this prospect. Devonian fields in north Lea Co. generally produce on faulted anticlines with 50 - 100 feet of closure. The Allison Prospect is no exception as it is located on the north side of a down-to-the south, east-to-west reverse fault with ~ 100 feet of throw. It is also upthrown by a minor fault to the west of the prospect which creates over ~ 90 feet of closure on this prospect. Seismic lines illustrate the east-to-west fault and show the upthrown block west of the minor fault. The Allison Prospect could have Devonian reserves of about 250 MBO that could be developed with one well, as average reserves for a Devonian well for this size field in north Lea Co. are about 250 MBO. Natural gas production is not significant in these fields. GeoSpectrum will deliver 87.5% working-interest (WI), 75% net revenue interest (NRI), for a prospect bonus of $150,000. The bonus covers acreage, seismic costs and prospecting fees. GeoSpectrum will retain a 12.5% WI and be carried to completion point decision on the first well drilled on the prospect. The Pennsylvanian Bough C Formation has also produced in this area from the Allison (Penn) Field. A seismic inversion generated by GeoSpectrum indicates that the reservoir extends onto our leased acreage. Three Bough C wells could be drilled with 125 MBO/well or a total prospect reserve of 375 MBO. If your company is interested in reviewing the interpretation or terms of this prospect with GeoSpectrum, please contact Dr. James J. Reeves at the contact phone numbers below. You will be asked to sign a non-disclosure and non-compete agreement that will cover the specific area of the prospects. This agreement will be effective for two years from the date of execution. This prospect is subject to prior sale. All reasonable offers will be considered. Please contact us if you have any questions or desire additional information on the prospect.
Dr. James J. Reeves, Ph.D. |
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P. O. Box 3399, Midland, TX 79702-3399 |
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