Diversified Oil and Gas Holdings (DVFI)

[Peak Oil]

About that 01/11/07 BIGN Press Release:

Has anyone wondered what they were talking about when the PR stated this:

"...Part of this transaction will include future well sites for offset drilling production on the current leases involving the Lower Stringer and Main Woodbine/Ashe Stringer zones...."


The conventional approach to operations of the marginal wells in the East Texas Field has been to pump at higher rates as the oil percentage drops. Across the field the wells are progressively becoming uneconomic because of water encroachment and this issue was a prime consideration in the project. Basically the objective of this task was to improve the decision making process about whether to abandon wells or purchase larger production capabilities.

Pumping nearby wells with conventional pumping units indicated that the total "fluid production" for this area may be limited to the 100 to 200 barrels per day range. A submersible pump would provide pumping capacity of over 1000 barrels of fluid per day,
but obviously would be excess capacity and non-economic at present. Discussions with DOE allowed a modification. An alternative to increasing oil production from potentially
productive zones by increasing volume while maintaining oil percent, is to increase oil percent of the existing producing capability.

Schlumberger was contracted to set a bridge plug in the No. 1 well to isolate the target zone at the top of the Woodbine from two sets of perforations in the lower Woodbine. New perforations were shot in the upper zone at the interval computing saturations or 50% or greater.

The well immediately was producing approximately 3 BOPD and this continued to the end of the grant period. It is anticipated that oil content will increase as the fluid level in the borehole declines. This zone is one that was originally produced as an open hole when the well was drilled. The operator set a liner in the well in 1975 when the production was uneconomic for the current prices. The deeper sand zones often referred to as the “lower stringer” were opened to production (3714’ – 3768’) and the upper Woodbine was left isolated from production behind the liner. This project identified that residual oil was still present in significant quantity and tested this observation by opening the behind pipe reserve to production.

http://72.14.253.104/search?q=cache:paQRE-noVYQJ:www.osti.gov/bridge/servlets/purl/834361-zWx03R/nat....

*****