PROSPECT LOCATIONS

All of the oil prospects in which we are participating share certain characteristics that define our philosophy for finding economically recoverable oil reserves in the U.S. today.  A respected Oklahoma geologist was often quoted that "to find oil you should go to where the oil is". The mid-continent region of the United States contains numerous oil fields that have produced some of the nation's and the world's most prolific historical production. According to the Ohio State Engineer publication dated March 28, 1928 article titled "Seminole the World's Greatest Light Oil Pool" reported that "the peak of production of the greater Seminole field was reached on July 30, 1927. Total amount produced that day was 527,000 barrels or roughly 1/5 of all the oil produced in the US at that time". Due to the Seminole field's excessive production "the excess of production of petroleum over consumption this year (1926) is about 7% of the total. On October 31, 1926 the price of mid continent crude was $2.45 per barrel and on October 1, 1927 the same crude sold for $1.32 per barrel". This historic article is important because it describes the boom or bust nature of the oil business and explains why many potential reserves found in these areas were abandoned or bypassed due to the economic and technological considerations of the day.  All of our identified prospects are located in these historically productive areas and are targeting those bypassed and/or abandoned reserves.

WELL CONTROL

The mid-continent region of the United States is our "geological area of interest".    Due to the large number of oil and gas wells drilled in this area, since its discovery in the early 1900's, we have the advantage of significant "well control" in our prospect and resource play identification process.  Well control is oil industry terminology that refers to the interpretation of the electric logs from these older wells that allows a Geologist to create sub-surface maps to predict the potential existence of recoverable hydrocarbons in a particular formation.  After a potential prospect has been identified through well control we then utilize other technological tools such as seismic interpretation, and petro-physical analysis for futher qualification of the prospect.

SEISMIC INTERPRETATION

Reflection Seismic is a method that allows us to image changes in the subsurface geology by inducing an acoustic wave from near the surface and listening for the echoes from deeper stagraphic boundaries.  This technology helps us indentify stuctural highs in target formations as well as measure the depth, thickness and continuity of those formations. This is especially important in the planning and design of horizontally drilled wells. 

PETRO-PHYSICAL ANALYSIS

Petro-Physical log analysis utilizes Nuclear Magnetic Resonance to identify pay-zones in individual wells that can assist in the development of reserve calculations over a larger area in a particular prospect or resource play. We use the services of NuTech Energy Alliance, whose founders pioneered the Nuclear Resonance Technology for both Hallibuton and Schlumberger. These services include proprietary analysis and interpretation that help identify pay-zones to stimulate and predict well performance including the statistical Oil in Place (OIP) reserve estimates over a designated area. These calculations are further used in our economic studies of the prospect and/or resource play.   

SEMINOLE UPLIFT

Within our geological area of interest there is a broad subsurface feature, referred to as the Seminole Uplift, that is approximately 50 miles wide and over 75 miles long. The feature itself has a number of anticlines and faulted noses that account for much of this historic, prolific oil production.  These oil reserves were produced from numerous significant reservoirs that were discovered in multiple formations (pay-zones) found in this area.  Substantial reserves were encountered in the Pennsylvania Sands, the Hunton group, the Viola, the Simpson Dolomite and the first and second Wilcox formations. Many of these wells that were drilled in the 1920's, 30's and 40's are still producing today.