755 PROSPECT
SOUTH KELSEY FIELD
STARR COUNTY, TEXAS
PROSPECT HIGHLIGHTS:
The 755 OIL PROSPECT is a multi-well shallow oil in-fill drilling program consisting of an oil test well identified by close order well
control in known oil sands. The Miocene-Frio Oil Sand Trend characterized by strong shallow (less than 6000 feet) oil and gas
production and wells which initially flow at 120 barrels of oil per day. The program seeks to capitalize on higher oil prices and
lower drilling and lease costs while utilizing close-in well control in a highly oil-productive area to identify overlooked commercial
oil reservoirs.
PROSPECT LOCATION:
The identified prospects are located northeast of San Ysidro in Northeast Starr County, Texas and are look-a-likes to other
nearby productive oil fields in these shallow horizons.
STRUCTURE OF THE PROSPECT AREA:
The known oil producing fields (fault blocks) trap on high-side closure against 120 to 150 foot down-to-the-coast faults which is
several well locations long and two well locations wide.
TRADE TERMS:
MULTIWELL PROGRAM:
Proposed Location 1 – Shallow Miocene step-out test well (5000 ft) with up to 3 additional oil pay sand and three to four
shallow development wells
Potential Reserves (est.): 200,000 bbls oil (primary oil zone), 600,000 to 800,000 bbls oil from development wells
Number of Wells: 1 structural test wells with 3-4 potential development wells
Working Interest Available: 100% (0% APO)
Operator: Open at time of posting (To be determined by largest WI Buyer)
Total Seismic Purchase: None required (two locations are offsets to wells which faulted-out oil pays)
Total Leasehold: 400 acres
Net Revenue Interest: 75% NRI on 100% Working Interest.
Costs:
Land, Geology & Geophysics: $150,000 for drillsite tract to proposed test well (to be paid upon execution of Participation
Agreement)
*SELLER may consider alternative offers on 100% WI. Subject to prior sale.