Ground Zero Prospect
Howard & Borden County, Texas
Prospect Overview
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Midland Basin/Eastern Shelf Transition area – Howard & Borden Co. TX - 5 zones. 2 primary
horizontal targets: Wolfcamp & Lower Leonard carbonate. Cline/Penn development South & East.
10,280 +/- acres on 3 ranches. 160 acre horizontal spacing. Room for 64 wells. 26–52 Million barrels
of oil recoverable using 4% recovery factor. Clear Fork & other formations could be developed
vertically on 40’s. Additional acreage can be acquired (10,000 acres+/-)
3 Primary Permian source shales (Woodford, Penn, Wolfcamp) underlie acreage and sourced large,
nearby fields (Reinicke, Vealmoor, Vincent, etc)
Repeatable, Multi zone, Hybrid Resource Play. Calculated Horizontal Reserves of 600-800 MBO per
160 acres in 2 zones. Proven consistent over large area (130+ miles). Analog wells 800-2000 BOPD.
Thick sections of hydrocarbon saturation. Wolfcamp section is 750’ thick. Leonard 250’ thick, 2
Finger–Cline 300’ thick.
Halliburton Shale Logs indicate almost 50% of column is high TOC, kerogen rich source rock
Correlative analog 120 miles away EOG, Approach, El Paso, Devon, Range & Pioneer. The recently
unveiled 2 Finger Shale(Cline) of Fisher County is present and productive in area. The 2500’ thick
Clearfork, Leonard, Wolfcamp(WolfFork) column is analogous to Approach & Three Rivers activity in
Irion & Crockett County
Horizontals & multi stage fracturing provide massive increase in volume of rock connected to
wellbore, thus providing economic, long term production of very low perm source rock
Comparable in age & targets to very active Delaware Basin
Extensive E-Log review, Compelling Mud Log Data, proof of hydrocarbons., movable 40 gravity oil
1500 BTU gas, heavy liquids. Excellent pipeline infrastructure. Ample water supplies
Apache, Chesapeake, SM Energy, Laredo, Nadel & Gussman and others actively leasing in vicinity
• Wolfcamp
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750’ thick lime, shale & sand mix. Depth 6400’-7200’
Halliburton Shale log analysis show appr 315’ (42%) of
column is kerogen rich, 3-5% TOC source rock. Limey, dirty
carbonates sandwiched amongst source rock. Shale Log
reserve calculations of 400 MBO per 160 acre tract
Mud logs exhibit off scale gas increases going thru
Wolfcamp. Carb & calc gas bleeding shale, fluorescence
Extensive E Log analysis. Mud log characteristics correlate
thru out study are and tie to production
Collectively, 90% of column has produced in vicinity, with
majority being from the “B” section. Newer completions
include upper
Type curve for 15-18 month vertical producers indicate 1520 BOPD. Extrapolated by 4X for horizontal, provides
economic 60-80 BOPD. Improved (larger) stimulations
could provide even better rates.
Historical WC producers 5-300 MBOE. One instance, 2’ of
perfs cum’d 43,000 BO
Lower Leonard
• 250’ Thick Shaley, limey & sand mix. Depth 6030’6280’
• Halliburton Shale Log analysis indicate 215’ of
column to be kerogen rich, 2-5% TOC source rock.
Carbonates sandwiched between dirty, shaley
source intervals. EUR’s of 200-400 MBO per 160
acre tracts
• Mud logs show off scale gas while drilling thru
interval with shows. Mud log gas correlates thru out
study area & ties to production
• Several 50-90MBO wells in vicinity. Produces in
Vealmoor & Reinecke Multi pay Field
• Might be excellent, tightly spaced, vertical project
utilizing advanced petrophysical analysis & multi
stage fracs
Other Targets
• Clear Fork: 3 intervals produce across region. Some high
cums, Would Have (3.8+ MMBO), Coahoma, North (600MBO)
and several 20-50 MBO fields
• Cisco/Canyon: Productive thru out region with some very
high cum’s 400+MBO/well
• Cline Shale/2 Finger: Range, Laredo & Apache have
horizontals 30 miles South. Apache completing interval near
prospect acreage. Presently, 2 Finger acreage to East & SE
trading feverishly with recent production tests. Possible
Chesapeake/Devon target
• Strawn: Productive to the East. High cum’s (400+MBO)
• Mississippi: Produces in region. EOG has Horizontal Miss
well, cum 700MM, 11 MBO, 2150 MCFD. Believe
Chesapeake/Devon/Apache chasing Horizontal Miss
• Overall: A very oily petroleum system
Land Position
• Appr 10,280 acres under 3 ranches
• Additional 5000-10,000+/- acres
available if pursued timely
• 100% WI - 75% NRI
• Oldest lease taken Nov 11’
• Ample well water for frac operations
Conclusions
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Major Permian source beds, long term production, high EUR fields within area, High Gravity oil,
high BTU gas- Heavy liquids
Modern Shale Log analysis provide new insight & pinpoint productive zones
Extensive E-log info, compelling, area wide, Mud Log Data
Shale Logs indicate 2200’ of liquids rich, porous intervals and recoverable reserves of 4+ MMBO
per section – PREMIUM ECONOMICS
Improved petrophysical analysis, Core work, fracture identification, MicroSeismic, horizontals and
multi stage fracs are breathing new life all across the Permian basin
Extrapolated type curve provide for economic horizontal development of prospect
Leonardian/Wolfcamp is equivalent to the Avalon/Bone Springs/Wolfcamp of the Delaware Basin.
ClearFork/Leonard/Wolfcamp/Penn Analog correlates 120 miles south to EOG/Approach/El
Paso/Devon/Range activity
Wolfcamp & Penn/Cline both being developed horizontally to the South
Relative shallow depth moderates drilling & completion cost. White/Ottawa sand can be utilized.
Low HHP Frac Spreads. Est CWC $4.0 MM, possibly decreasing to $3.5MM
Acreage Multiplier - Stacked pays offer substantial reserves across acreage block – A Very, very
Oily area