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GeoSpectrum is offering for sale the Ray Prospect with total reserves of One MMBO located in southern Roosevelt County, New Mexico. The primary objective is oil production from the Pennsylvanian Bough C Formation with estimated reserves of 500 MBO. The Devonian Formation at 12,500 ft is also prospective with estimated well reserves of 500 MBO. The Pennsylvanian Bough C Formation has produced in this area from the Allison and Vada (Penn) fields. A seismic inversion generated by GeoSpectrum indicates that the reservoir extends onto our leased acreage. Four Bough C wells could be drilled with 125 MBO/well or a total prospect reserve of 500 MBO. Devonian fields in north Lea County and southern Roosevelt County generally produce on the upthrown side of faulted structures with 50 - 100 ft of closure. The Ray Prospect is no exception as it is located on the west side of a down to the east, north-to-south reverse fault with ~ 300 ft of throw. The prospect has over ~ 120 ft of closure and seismic data clearly illustrates the west dip creating a structural trap against the north-to-south fault. The Ray Prospect could have Devonian reserves of about 500 MBO that could be developed with two wells, 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% revenue interest, for a prospect bonus of $150,000. GeoSpectrum will retain a 12.5% WI and be carried thru the tanks on the first well drilled on the prospect. You will be asked to sign a non-disclosure and non-compete agreement that will cover the leased acreage in Roosevelt County, New Mexico. This agreement will be effective for two years from the date of execution. The Ray Prospect is subject to prior sale. All reasonable offers will be considered. If your company is interested in reviewing the seismic interpretation or terms of this prospect with GeoSpectrum, please contact Dr. James J. Reeves at the contact numbers below.
Dr. James J. Reeves, Ph.D. |
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P. O. Box 3399, Midland, TX 79702-3399 |
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