MPG Petroleum, Inc

Executive Summary

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


Terms:  MPG Petroleum, Inc., offers non-operated, JV Participation and will deliver 70% NRI.  MPG backs in for 25% Working Interest after payout.


Contact:  Margaret P. Graham, President   MPG Petroleum, Inc.       


8700 Crownhill Blvd., Suite 804, San Antonio, Texas, 78209    *   1-210-822-7770    *