The Marietta Prospect
Texas
Gulf Coast
Due to the highly proprietary status specific geographic
information will be provided subject to a certain Non-Compete, Non-disclosure Agreement
and imminent to a transaction.
Horizontal Drilling and Fracture Stimulation of a Series of Tight
Oil and Gas Sands:
MPG Petroleum, Inc. has identified a series of stacked,
hydrocarbon bearing sands that have never been produced. Charge has been proven and the hydrocarbon
source rock has been geochemically matched to this series of sands. The
reservoirs contain (unrisked) PUD
reserves of high-gravity (59 API) oil and
high-Btu (1450) natural gas. Supporting data include Flow Tests, Mud Logs,
Petrophysical Logs and 3D seismic data exhibiting direct hydrocarbon indicators (“DHI’s” aka bright
spots or amplitude anomalies).
Individual amplitude anomalies range in size from 40 to 170 acres
and appear to be Deltaic Crevasse Splay (sand-shale
sequence) deposits with porosity ranging from 15- 22%. The prospective reservoirs
are geopressured below ~8,500 ft, with oil and gas shows present from ~5,750 ft
to 9,350 ft. Several zones were
perforated and flow tested at impressive rates, producing oil, natural gas and
condensate but they did not sustain flow due to low porosity and permeability
inherent to the reservoirs. Permeability was likely further reduced and
sustained flow impeded by formation damage caused by the use of a water-based drilling
mud drilling system. Poor cement isolation is also obvious, created by gas flow
into the well during drilling and cementing operations.
Drilled in 2009 and completed with 5.5”, P-110, 17 lb/ft
casing, the well is shut-in currently at 3600 Psi. It is a good candidate to be
utilized as a Pilot Hole to cost efficiently access the by-passed resources of
the series of tight oil and gas sands.
A Sidetrack Lateral well will be drilled from the Pilot Hole with an
oil-based mud system and landed horizontally in the thickest and largest of the
series of tight oil and gas sands, the “8900 ft Deltaic”. This reservoir carried the strongest
show at 3102 units of gas (Show No. 9). The initial objective of the Marietta
Prospect is to access and produce the PUD reserves in this reservoir, then to maximize
all assets accessible from the Pilot Hole with future Sidetrack Laterals. Horizontal
drilling and sand fracture stimulation of tight oil and gas reservoirs has
proven successful in many other areas but MPG will be first to apply this approach to this specific area and formation.
Robust flow rates and high cumulative recoveries
are expected. Ample infrastructure is
present, creating the conditions necessary for a rapid turnaround from investment to revenue.
Risked Reserves: 965,700
BOE (145
Ac. amplitude anomaly, 36 ft avg. thickness)
Net Valuation at $ 80 Oil: $ 51,591,557 (Net
of Royalty and Tax)
Project Cost: $ 3,980,750 (D&C,
GG&L)
Return on Investment: 13 : 1 (Based
on $80 oil price est. over life of well)
Estimated Proceeds Net/Month: $ 624,766 (Based
on 392 BOEPD, $ 80 oil)
Pay Out Projection: 6.4 Months
Contact: Margaret P.
Graham, President •
MPG Petroleum, Inc. mpgraham@mpgpetroleum.com
8700 Crownhill Blvd., Suite 804, San Antonio, Texas, 78209 * 1-210-822-7770 * www.mpgpetroleum.com
