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Re: daiello post# 1409

Thursday, 07/10/2014 12:35:57 PM

Thursday, July 10, 2014 12:35:57 PM

Post# of 3654
RVDO -

Executive Summary
http://drill5.com/Executive_Summary.html

Stowe 5 Prospect
Brookshire Salt Dome
Waller Co., Texas

The Stowe 5 Prospect is situated on the Brookshire Dome, in Waller County, Texas. Geographically, it is approximately 35 miles west of Houston and is bisected by the 4-lane IH-10 and service roads.The Prospect is located approximately 2 miles south of IH-10 and east of Peach Ridge Road in the William Cooper Survey (Abstract 20).

The Brookshire Dome is a shallow piercement salt dome with a caprock as shallow as 3,150 feet. It is a large dome approximately 4 miles by 3.5 miles in dimension. In cross section the dome is markedly steep-sided with a "mushroom" top which results in areas of substantial salt overhangs. The Stowe 5 Prospect is situated near the top of the dome with a caprock at approximately 3,400 feet in depth.

The Brookshire Dome (also known as the San Felipe Dome) was discovered by Gulf Oil Corporation seismic reconnaissance in 1927. Much of the earlier production from the Brookshire Dome was focused on deep production looking primarily for oil, as gas prices were considerably depressed prior to the early 1970s. Most of the recent production is from the shallower Miocene Sands, the Catahoula Sands, Frio Sands, and Yegua Sands.

Many of the recent discoveries on the Brookshire Dome has been attributed to a high definition gravity survey known as Affinity Survey, that had been operated by Neozoic Geophysical. Property Development Group, Inc. had used this gravity procedure to discover the Miocene and Frio Sand production that had been established on the Stowe Lease; the Catahoula Sand production on the Koomey Lease; and the Yegua Sand production on the Johnson Lease. The results have provided a very helpful tool in not only locating drillsites, but providing an insight into the subsurface geological picture. The basis for the Affinity Survey is rooted in its relationship to measure with high resolution, the gravitational fields over and around the area of the salt mass of the dome.

Neozoic Geophysical conducted their gravity survey over the Stowe Lease in October, 2001, which led to the discovery of the Stowe #1 well. The Stowe #1 was drilled to a total depth of 3,570 feet to the Caprock and was completed in a Miocene Sand at 1,184 feet and potentialed 1391 MCF/day. From October, 2001 thru November, 2002, the well produced a total of 314,734 MCF, averaging over 800 MCF gas per day with maximum production at 1.4 million cubic feet of gas per day.

The Stowe #2 well was drilled to a total depth of 1,180 feet to a shallow sand above the Miocene sand found in the Stowe #1. The well was completed in a Miocene sand at 1,029 feet and potentialed 322 MCF/day. From January 2002 thru May 2002, the well produced a total of 27,837 MCF.

The Stowe #3 well was drilled to a total depth of 3,440 feet to the Caprock and was completed in a Frio Sand at 2,888 feet. The well had an initial potential of 125 barrels oil/day, 26 MCF gas/day, with a flowing tubing pressure of 245 psi on a small choke (10/64th). The well still flows a small amount of oil today. Since its discovery in 2001, the Stowe #3 well has been free flowing with no artificial lift and to date, has flowed a total of 63,259 barrels of oil.

The Stowe #4 well was drilled to a total depth of 3,488 feet to the Caprock and was plugged as a dry hole. The Stowe #4 well was located off the positive area of the Affinity Survey, as a geologic prospect based on drilling activity to the wells discovered on a lease to the south of the #4 location. The well was plugged on February 13, 2004.

The Stowe #5 Location is situated on a very strong Affinity Survey station area. From the survey, it appears that there may be a potential oil accumulation at the intersection of two faults. The well should encounter numerous formations of above average to excellent porosity and permeability, from near the surface to the Caprock. The Stowe 5 Prospect contains an area of 1 acre around the Stowe #5 location. The nature of the deposition of sands on a salt dome creates a no spacing requirement rule by the Railroad Commission. The reserves on a salt dome are generally situated vertically rather than horizontally, and thereby, have the potential for large oil and gas recoveries.

The multiple potential of numerous formations; the economic history of the area; and, the excellent track record of the Affinity Survey over the Brookshire Dome in dozens of predicted wells, all combine to reduce risk and allow for an excellent chance for success in drilling economic reserves in the Stowe #5 well.