EXECUTIVE SUMMARY
JX/YEGUA 3-D OIL PROJECT
PROSPECT HIGHLIGHTS:
The OIL PROJECT is a multi-well shallow oil and gas drilling program consisting of an oil test well identified by well control,
2-D and 3-D seismic in highly productive oil and sands. The Jackson/Yegua Oil and Gas Sand Trend is characterized by
strong shallow (less than 6000 feet) oil production and wells which initially flow at 150 barrels of oil per day from the
Hockley (Jackson Fm.). 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 highly commercial oil reservoirs.
PROSPECT LOCATION:
The identified shallow oil prospects are located in Northeast Duval County, Texas and are structural look-a-likes to other
nearby highly productive oil and gas fields in these shallow horizons.
STRUCTURE OF THE PROSPECT AREA:
The known oil producing fields in this trend trap on high-side closure against a 50 to 150 foot faults in blanket sands.
TRADE TERMS:
MULTIWELL PROGRAM:
Proposed Location 1 – Shallow Hockley(Jx) step-out test well (5600 ft)
Potential Reserves (est.): 150,000 bbls oil (Hockley oil zone); 450,000 to 750,000 bbls oil from development wells
Number of Wells: 1 structural test well with 3-5 potential development wells
Working Interest Available: 100% (0% BIAPO to Seller)
Operator: Open at time of posting (To be determined by largest WI Buyer)
Total Seismic Purchase: None required
Total Leasehold: 400 acres
Net Revenue Interest: 75%NRI on 100% Working Interest.
Costs:
Land, Geology & Geophysics: $50,000 for all proposed wells (to be paid upon execution of Participation Agreement)
*SELLER may consider alternative offers on 100% WI. Subject to prior sale.