Diversified Oil and Gas Holdings (DVFI)

[Peak Oil]

THE WOODBINE Formation, named for a small town in east-central Cooke County, Texas, is the basal formation of the Gulf Series. It is best known for being the source of the East Texas oil field, one of the largest oil fields on the North American continent. It unconformably overlies the Grayson Marl, uppermost member of the Washita Group, and is unconformably overlain by the Eagle Ford Group.
Two major members are widely recognized in the Woodbine Formation. They are the Dexter Member (lower sandstone) and the Lewisville Member (upper shale).



The East Texas Field was discovered in 1930 and quickly became identified as the largest
contiguous oil field in the world, extending over 4 counties, 140,000 acres, and at its peak
had 35,000 wells (Figs. 1-2). Total production to date is in excess of 5 billion barrels of
oil and an estimated 1.4 billion barrels still remain to be recovered. The field has a strong
water drive and oil has been pushed to the eastern edge of the field as production
proceeded; consequently, the Woodbine sand zones on the eastern or up-dip edge of the
reservoir have produced in excess of 100 per cent of the oil in place due to the migration.
Wells on the western edge of the field have progressively gone to a high water percentage
and have either been shut-in or plugged. Many leases have been abandoned and the
Texas Railroad Commission has been required to assume the plugging liability. A large
number of these leases have shut-in wells and are available to us for this project.
Currently fewer than 7000 wells remain in production. Oil production has been reduced
in half over the past decade and expectations are that it will reach two-thirds in the
coming decade.

BIGN wants to use well enhancement technologies to address these facts. More later....