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GeoSpectrum, Inc. is offering for sale the Dragon Development Project in Hockley County, Texas with an additional proved and probable reserve recovery 6-9 MMBO. This project has been identified with offset well, 3D seismic data and production data. The Canyon, Wolfcamp, and Wichita-Albany are all productive oil reservoirs in the project and the Strawn produces on structure five miles to the northeast. The Strawn Formation is shelfal carbonates with a porous zone 10 to 15 ft thick at a depth of 9800 ft. Well production should average about 250 MBO/well on 40 acre spacing for a total of 1 MMBO from four wells. Three Canyon locations are also located updip from three commercial Canyon producers and will have reserves of 700 MBO. In addition, eight Wichita-Albany/Wolfcamp wells updip from current Wichita-Albany/Wolfcamp production at 7900 to 8500 ft may produce another 1500 MBO in this shelf trend. The Clearfork is a dolomite reservoir with numerous porosity stringers scattered throughout the formation and ranges in depth from 6200 to 7000 ft. The Clearfork production offsetting GeoSpectrum's acreage is economic when waterflooding is initiated. The average primary recovery is 60 MBO/well and increases to 150 MBO/well under secondary recovery operations. More pay zones would be perfed and flooded than even the offsetting successful waterflood operation, increasing reserves up to 200 MBO/well. Geospectrum has acreage leased and farmed-in for 32 development wells that may produce 4.8 to 6.4 MMBO. The Clearfork waterflood is not a part of this initial Phase I development program, but will continued to be studied utilizing new data obtained from the deep drilling program and will be the Phase II part of the development program. Depending on what each party contributes to this development project as investment and operational expertise, GeoSpectrum’s terms will include a bonus for the geological, geophysical and engineering interpretation, including 3D seismic and land fees to date, as well as a negotiated equity position in the project. GeoSpectrum will deliver our 1380 gross acres of farmed-in and leased lands with a 25% royalty burden or the current royalty burden if it is greater than 25%. If your company is interested in reviewing the subsurface interpretation or terms of this project 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 project. This agreement will be effective for two years from the date of execution.
This project 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 project.
Dr. James J. Reeves, Ph.D. |
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P. O. Box 3399, Midland, TX 79702-3399 |
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