Transcript Monoco Petroleum, Inc. La Jolla Prospect

Monoco Petroleum, Inc.
La Jolla Prospect
McMullen County, Texas
May 2008
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Release and Hold harmless:
Any party viewing this Power Point agrees to hold MPI
harmless
from
representations
regarding
Prospect
representations made herein. The viewer agrees to do their
own due diligence and warrant that they are knowledgeable in
evaluating oil and gas Prospects and that they will not rely on
MPI for its evaluation decisions of any kind.
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MONOCO PETROLEUM, INC.
La Jolla Prospect
McMullen Co., TX
• Play Type: An extension of reefal producing field discovered
in 1982 by the Clifton Wheeler Kilroy #1. 3-D demonstrates
strikingly similar seismic character at the Prospect Location.
• 16,800’ to penetrate reef, 17,500’ to see entire Sligo
• Lower Cretaceous Sligo Reef facies Multiple Locations
• Reserve Potential High Side 400 BCF
• Risked Reserves 7 BCF
31% POS
• Terms: 1/3 for 1/4 Carry thru hook-up on the 1st well
Up front costs $950,000 to 89% W.I. 74.5% NRI
• $6.67 MM DHC
$1.7 Completion Costs Total: $8.4MM
• Pipeline on Lease Short Distance Access to Processing Plant
• Operations: Available
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La Jolla Prospect
Comparison of A Proposed Location and Wheeler #1
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Miles
La Jolla
Flat Spots (Sag)at
Wheeler #1
32 BCF
3-D seismic shows a seismic thickening & “pull down” of a 2nd peak in the upper
Sligo section and in the prospect area possibly indicating Ф development & HCs.
This seismic anomaly is not seen in the other wells in the area.
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Prospect Attributes
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Primary objective is the Sligo Fm (L. Cretaceous)
The prospect also has a large Edwards Fm anomaly
The 3-D shoot: 48 fold @ 18,000 ft.
Prospect enhanced by High Resolution Color Inversion
“Flat Spot” seismic anomaly unique to La Jolla & Wheeler #1
Anticipated accumulation size: 30 Bcf/well
Upside potential: Multiple Wells 300 - 400 BCF
Estimated initial production rate: 10 – 15 MMCFD
Overpressured, minor amounts of H2S (100ppm)
8% CO2 anticpated
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MPI’S HIGH RESOLUTION SEISMIC DATA CUBE HAS GENERATED
MULTIPLE REEFAL DRILLING TARGETS.
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SHELF EDGE,
ATOLLS,
BACK REEF,
BIOHERMS &
FORE-REEF
High Resolution Color Inversion Time Slice (not to scale)
Similarity of Modern Day Reef System to
Carbonate Features of Previous Slide
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Isolated Highlight of Cretaceous Rocks
La Jolla has
SIGNIFICANT
Reserve
POTENTIAL!
This
Feature
Produced
32 BCF
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30+ Ft Bypassed Pay?
Across the perforated interval &
within the anhydrite layered
zone, Sw has a direct
relationship to the porosity (Ф),
such that in each flow unit, as
Ф increases, Sw decreases.
This occurs where Sw is a
function of pore type, and well
above any gas-water interface.
Ths is confirmed by a H20 free
completion & several months of
H20 free production.
Below the anhydrite layered
zone, the lowest Sw occurs
@16,700 ft in the highest Ф
flow unit in the entire well. This
is still in the free gas column –
a separate accumulation below
the anhydrite rich facies.
The base of the gas column
may occur @ 16,730 ft where
Ф remains in the 6-8% range
but Sw registers 89%. This
appears to be the top of the
transition zone where both gas
& H20 are mobile.
TOP SLIGO
Perforated Pay
Anhydrite Layers
Unperforated Pay
by Log Analysis
Moveable Water
By Log Analysis
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5,000 lbs. of pressure when
the casing collapsed
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Rudist Grainstone Facies in Slab
Core From Nearby Well
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Dip Line Across a La Jolla Prop Loc
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Internal Amplitude Evaluation
Amplitude Dim-out of More Porous Rocks
vs.
Stronger Amplitudes of Denser Rocks
Wheeler #2
La Jolla Acreage
Wheeler #1
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Possible Areal
Drainage
Calculated
Reservoir Thickness *
Wheeler #1
536 ac. (Green)
288 Ft.
La Jolla
844 ac. (Purple)
462 Ft.
(* Isopach T/ Sligo to Flat Spot)
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Pipeline Map
Pipelines thru and near the Prospect Leaseblock
leading to a sour gas processing plant
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AFE
Drill &
Complete
17,000 Ft.
Test Well
DHC
$6.65MM
Complete
$1.74MM
TOTAL
$8.4MM
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Independent
Risk
Analysis by
a Houston
O&G
Company
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Comments Re. H2S, CO2 & H2O
Corrosive gas quantities are quite low, ranging from
40-120 ppm
When combined w/ water, temperature & pressure
considerations, this becomes more than a nuisance.
Extreme care should be taken to use optimum
quality tubulars.
Had this been done @ the Wheeler #1, the casing
likely would not have collapsed.
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Drilling and Completion Considerations
• The key to a successful Sligo test is to hit the target within a
150 ft. radius of the defined site coordinates.
• This will require real time direction information and LWD data.
• In conjunction with an effective acid frac, this will make all the
difference between a good or a marginal well.
• Casing & Tubing must be high end anti-corrosive
• Overpressure & H2S require key decisions related to drilling
safety , casing & intermediate string placement.
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Thank You !
For Further Information
Contact David C. Montoya
Monoco Petroleum Inc.
(281) 358 - 5400
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