Sabine Parish Phase 2 Well Fundalphaseadmin2018-06-21T17:13:11+00:00
This is a single well project (well holds 40 acres) in Sabine Parish, Louisiana. The vertical depth of this well is approximately 4,700’. Geological support, using a seismic data visualization system, has been instrumental in our team’s ability to successfully locate target pay zones. The zones hit from this well include: 2 Glen Rose intervals; 3 Fredericksburg intervals; 1-2 Ozan Intervals; 1-2 Saratoga intervals.
Status: This well is currently going into production.
The “Sabine” project is a Saratoga Chalk development in Sabine Parish, Louisiana. This 12,400 acre project is in one of the most prolific, historical shallow fields in the State of Louisiana. Less than 4,000 feet away from our position, production yields more than 1.5 million barrels of oil, and over 64 billion cubic feet of natural gas, just within our reservoir formations.
A detailed geological analysis reveals large remaining oil and gas reserves in both the Saratoga formation (2,500 feet) and the Fredericksburg formation (3,500 feet), also with deeper untapped opportunities in the Austin Chalk, Tuscaloosa, Petite, Paluxy, James Lime, Glen Rose and Haynesville. Over the past decade, majors such as Chesapeake, Shell, Comstock, and Vine have completed major Haynesville developments upon hundreds of thousands of net acres, all surrounding our acreage.
In 2013 large companies were paying $3,000, per acre for large tracts in the Haynesville development. Shell expressed an interest in purchasing this lease position, which had not been drilled in 25 years due to a continuous family litigation. Our partners were able to settle the family differences, paying over $6 million, to obtain one lease that includes the entire 12,400 acres with all depths. The initial intention was to flip the lease to Shell for profit, however after the lease was acquired in 2014, the natural gas prices dropped. Shell had suspended their Haynesville drilling program and eventually sold their position to Vine Petroleum. As a result, our partners started to evaluate the shallow zones with their in-house 2-D lines and discovered a lot of historical production. An opportunity presented itself to develop low cost, conventional reserves, with substantial upside and revenue stream to support continuous development.
The next layer of the geology consisted of purchasing the complete set 3D/5D Seismic Surveys over the entire 12,000 acres position from Veritas. The quality controlled data works remarkably well with our state-of-the art visualization software which is proprietary to our partners. It gives a very clear picture of how production occurs in the Saratoga, Fredericksburg and Glen Rose formations.
We successfully drilled our Phase 2 well on this lease. Two of thePhase 3 well locations are on this lease. We have successfully drilled the first of those two wells, which is currently under completion.