Brief Overview
PROPOSAL:
Drill one well and Re-work existing well in the Hrubetz “Ellen” Ellenburger Field at a depth of
4,600’.
Well Logs show we have the potential of finding 400,000+ BOE. Wells average 114 BOEPD Per Well.
OBJECTIVE:
Ellenburger Formation, which underlies the subject oil and gas lease, between the subsurface depths of 4,350’ - 4,550’
POTENTIAL RESERVES:
400,000+ BOE
ESTIMATED DAILY RATES:
IP 50-400 BOEPD
NUMBER OF WELLS:
TWO (2) 1 NEW 1 EXISTING
NET REVENUE
56%(NRI)
TOTAL INTEREST AVAILABLE:
80%(WI)
TOTAL COST
$1,388,115.50
The objective of this drilling program is to drill a well and Re-complete #117 on the West Taylor Oil,
Gas and Mineral Lease, in order to develop and produce the Ellenburger Dolomite Formation. The
proposed new well is to be drilled 150’ from the existing West Taylor #112 oil well.
Ellenburger Dolomite Oil Production:
The West Taylor Oil & Gas Lease contains 338.5 acres and is situated in the heart of the Hrubetz
(Ellen) Ellenburger Dolomite Field, 4 miles West of Novice, Coleman County, Texas .
The Ellenburger Dolomite Formation underlying the prospect was created on a wide, shallow
Ellenburger limestone shelf which was transformed into Dolomite. This transformation process is
known as “dolomitization” and occurs when limestone (CaCO2) becomes dolomite(CaMg(CO2)2).
Dolomite is generally observed to have more effective primary porosity than limestone. The
“secondary porosity” increase due to dolomitization, the voids ( known as vugs or vugular porosity )
created by percolating surface and subsurface waterborne carbonic acid and other organic acids, and
the faulting and folding of the subsurface strata allows for significant accumulations of hydrocarbons
within the dolomite.
From studies of other area well logs, it has been determined that the secondary porosity created
by structural faulting and folding extends vertically as well as horizontally within the formation. The
naturally occurring connection of vertical and horizontal fractures presents the opportunity
for increased initial production rates and enhanced primary hydrocarbon recovery when the
interconnection of fractures within the formation is augmented by lateral boreholes and the well
bore is properly stimulated with acid and hydraulic fracturing.
A prior operator of the lease drilled the West Taylor #112 & #117 well and proved a large
Ellenburger Dolomite reservoir trapped by a Northeast by Southwest oriented Ellenburger structure
situated beneath the prospect. The electric and mud log profile of the #112 well indicates
+/- 32 feet of fractured net pay zone. The well tested an initial potential (IP) of 102 BOE (BOE = Barrel
of Oil Equivalent = approximate energy released by burning one barrel, or 42 US gallons, of crude
oil; +/- 6,000 cubic feet (6 MCF) of natural gas is equivalent to one BOE). Ellenburger Dolomite wells
within close proximity of the proposed drilling location have IPs ranging from 48 BOE to 211 BOE
(see satellite map above ).
Shortly after drilling and testing Well #112, the prior operator declared bankruptcy and the lease
was eventually acquired by the present operator, Taylor Operating Company. The lease is held by
production from oil and gas wells producing from the Gardner Sand, which is situated +/- 600’ above
the top of the Ellenburger Dolomite Formation.
