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Discussion
GeoSpectrum is presenting the results of our 18-month study of the Minnelusa oil prospect in Crook County, Wyoming. We have identified 4 wildcat locations and are offering to the industry the opportunity to earn a 75% Net Revenue Interest in the project for the drilling of one well to 8,000 feet to casing point, at which time GeoSpectrum will pay their 25% interest should information indicate the well should be completed and put on production. In the drilling of subsequent development wells GeoSpectrum will pay their 25% share of production cost.
Recommended Exploratory Well Sites numbered 1,2 and 3 are within the prospective area defined by a pinchout mapped on 3D seismic and well data that crosses a strong structural nose plunging westward. On the crest of the nose there is an area of structural closure. Recommended Exploratory Well Site 1 is located at the high point of the structural closure.
Recommended Exploratory Well Site 4 is located on the “One Well Field Impedance Anomaly” on a sand dune that is encased in the Minnekahta Limestone and Opeche Shale.
The trap involving the pinchout covers approximately 320 acres. Economics analysis of a possible oil field containing 8 wells each producing 630 MBO of oil with initial per well production rates of 400 BBLS a day and 25% decline rates result in a return on investment of 8 discounted at 10 %. The internal rate of return is 384 %.
At this point we invite you to visit the following individual displays we have prepared in the sequence they are presented.
Figures and Tables
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Figure 1, Field and Prospect Locations
Figure 2a, Structure at the top of the Minnekahta, B Sand
This display is to demonstrate the most favorable aspect of this prospect, the fact that this is a closed structure. The area under closure within the –3200’ Contour is just over 400 acres. The primary objective we are drilling for will be the B Sand that pinches out across this structure as is demonstrated by the green pinchout line.
The fact that this structural information is very critical is borne out by a cursory look at the Robinson Ranch field, located 6 miles north and east of here that has produced over 7 MMBO of oil from the A and B Sands from 35’ of closure at the B level and a pinchout of the A Sand across a plunging nose. A map of Robinson Ranch is provided in Figure 12.
Figure 2b, Structure at the top of the Minnekahta, A Sand
There is the potential for one or two wells having production from the A Sand that is present in the Pursel well on the northern plunge of the structure and the Klaenhammer well on the east side of the bounding syncline.
Figure 3a, Structure Map on the top of Dakota Sand
Contours are at the top of the Dakota Sand. Our area of interest is indicated by the closed structure (shaded in red) immediately east of the Donkey Creek field. The seismic data combined with the subsurface information from the wells to the east of the structure leads us to conclude that this is indeed a deep seated structure and that this closure does persist from the Dakota level through all horizons to basement. Green star indicates a live oil show at the top of the Dakota.
Figure 3b, Drill Line Dakota Sand
This line indicates the impedance recorded at the Dakota level. It’s primary purpose is to demonstrate the relationship between the oil show recorded in the dry hole drilled in 1987 at the top of the Dakota and GeoSpectrum’s proposed location. Note that we are mapping the Dakota 40’ structurally high at our proposed location to the referenced oil show.
Figure 4a, Structure Map and Timeslice – Objective Sand
Shown here are the geologic structure at the top of the Opeche Shale and a timeslice through the objective sand at a position 140 feet below the top of Opeche. The brown and yellow colors reflect the favorable porosity of the Minnelusa B Sand where present. The serrated line indicates the position of the B pinchout into dolomites. The position of this pinchout is further defined by well control as there are no B Sands present in the well indicated by the red arrow. Also shown by the red outline is the area of the trap. For details, please refer to Figures 7a and 10.
Figure 4b, Structure Map and Timeslice – Objective Sand (with Area of Interest)
The box indicates GeoSpectrum’s acreage position. The 7 red dots on the Donkey Creek field indicated wells that have produced 1 MMBO each from either the A or B Sands.
Figure 5a, Structure and Isopach Map
Contours are on the top of the objective sand. The colors indicate the thickness of the objective sand. Color key for the thickness is indicated by the legend to the right.
Figure 5b, Isopach Map - Top of Opeche to Top of B Dolomite
This isopach interval contains the A and B Sands where they are present. The thinnest value for this isopach is located at the location of the well indicated by the red arrow. This map demonstrates a long, narrow isopach thin that coincides with the pinchout of the Minnelusa B Sands on the west flank of this thin. Further, this map also shows us a thick area > 220 ft that coincides to the presence of the favorable stratigraphy within the B Sands.
Figure 5c, Isopach Map - Top of Opeche to Top of B Dolomite and Timeslice 140’ below Top of Opeche
Timeslice through the objective sand at a position 140 feet below the top of Opeche. The brown and yellow colors reflect the favorable porosity of the Minnelusa B Sand. The point of this display is to emphasize that the pinchout of the B Sand is occurring between the edge of the seismic data and the well indicated with the red arrow (Figure 10). As the Opeche Shale is resting directly upon the B Dolomite in the referenced well and there is no A or B Sand present, we conclude that the pinchout occurs within the area of the steep contours indicating the 160’ of thickening between the well and the seismic.
Figure 5d, North-South Seismic Line 1090
This seismic line is the furthest east seismic control we have within the data set. We are displaying it here to point out the presence of the B Sand referenced by the pink arrows. We are also pointing out the A Sands, indicated by the yellow arrows, transgressing onto the topographic high that is indicated by the well 1100’ to the east of this seismic line.
Figure 6, Structure Map - Top of B Dolomite and Timeslice 140’ below Top of Opeche
This figure is to demonstrate the relationship of the stratigraphic features to the structure map on the top of the B Dolomite.
Figure 7, Timeslice - A Sand
This is a timeslice showing two channels of A Sand located 70 ft below the top of the Opeche. The recommended drill sites are at the highest structural position where these dune sand channels terminate. Please refer to Figures 7b and 8a for details.
Figure 8a, Decline Curve – Simpson – Above Average
This is the decline curve for the Simpson 23-12 Minneulsa producer in the Terrace Field, WY. It is shown because it is the best well we have identified to date producing from the Minnelusa. It came on production in 1986 at around 400 bbl/day and is currently producing about 120 bbl/day. Its cumulative production to date is a little over 4 MMBO.
Figure 8b, Decline Curve – Thorson - Average
This is the decline curve for the 3-6H well in the Thorson Field, WY. This is a more average decline curve for the Minnelusa. The well came on production in 1985 at around 400 bbl/day and has declined to make about 3 bbl/day currently. Its cumulative production to date is about 1.179 MMBO.
Figure 9a, Crossline showing Actual Pinchout of B Sand - Seismic
This seismic line demonstrates the pinchout of the B Sand as it occurs on the seismic data. An interpretive outline is shown on the seismic. Please refer to Figure 7b to see the elements of the interpretation and the relationship of the reservoir sand to associated sealing units. IN this well, the B Sand is 66‘ thick and has porosity between 15 and 20 %. See Figure 7c.
Figure 9b, Crossline showing Actual Pinchout of B Sand - Overlay
This seismic line is located north of the recommended drill site and shows the relationship between the reservoir sand and the sealing members.
Figure 9c, Tie from production at Donkey Creek to Synclinal Dry Hole
This is to show the relationship between the productive well in Donkey Creek, and the key well in the syncline that separates Donkey Creek from our Recommended Drill Site 1.
Figure 9d, Tie from Synclinal Dry Hole to Recommended Drill Site 1
This is to demonstrate the relationship between the well located in the syncline that has favorable reservoir quality rock in the B Sand, and Recommended Drill Site 1 that is 100’ structurally high to the well in the syncline and shows favorable reservoir quality rock from the inverted seismic data. The seismic line changes direction at the Recommended Drill Site 1 and proceeds due south to the end of the data set.
Figure 10a, Crosslines A & B Pinchout - Seismic
This line is located on the axis of the plunging nose and shows the detail of the A& B Pinchout. The seismic shows the impedance as determined from inversion of the seismic data, and the interpretive area is outlined.
Figure 10b, Crosslines A & B Pinchout - Overlay
This line is located on the axis of the plunging nose and shows the detail of the A& B Pinchout. The seismic shows the impedance as determined from inversion of the seismic data, and the interpretive area is outlined.
Figure 11a, Inline A & B Pinchout - Seismic
This line shows the two recommended drill sites, as well as the position of the pinchout of the B Sand to the right into the overlying A and underlying B Dolomites as they merge. Drill Site 2 (to the left of the section) is positioned to test a sand dune protruding upward into surrounding A Dolomite. The seismic shows the impedance as determined from inversion of the seismic data, and the interpretive area is outlined.
Figure 11b, Inline A & B Pinchout - Overlay
This line shows the two recommended drill sites, as well as the position of the pinchout of the B Sand to the right into the overlying A and underlying B Dolomites as they merge. Drill Site 2 (to the left of the section) is positioned to test a sand dune protruding upward into surrounding A Dolomite. The color overlay shows the interpreted relationship of the A and B Sands and their respective seals.
Figure 12, Northwest Ridge Cross Section
This shows the relationship between the seismic and the Northwest Ridge well where the B Sand pinches out within the 1100 ft that separates the well from the edge of the seismic data. It is on the basis of this interpretation that the pinchout line for the B Sand is positioned as it is.
Figure 13, Seismic Profile Locations
This is to show the locations of the four seismic profiles that are included in this presentation. The pinchout line and the 3 Recommended Drill Sites are included for orientation.
Figure 14, Robinson Ranch Field
This field is being shown because it is a reliable analog to GeoSpectrum’s Minnelusa prospect, both as to size and potential reserves.
Table 1, Economic Analysis
Please note the very favorable economics. Given 20% chance of success and discounted at 10%, this project still yields a ROI of 7.9 and Internal ROR of over 380%.
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