Baron Energy (BROE)

[OilStockReport]

Operating Area

Baron’s primary area of operations is an eight county region in the core of the Permian Basin of West Texas, one of the most prolific oil producing regions in the world. The Basin covers an area 250 miles wide and 300 miles long. The first well in the Basin was completed in Mitchell County, Texas in May, 1923 to a depth of 3,055 a process that took 20 months. Since then more than 4,500 oil pools and 1,000 natural gas pools have been discovered with a cumulative production of approximately 30 billion barrels of oil. Yet it’s estimated that more than 10 billion barrels of oil have yet to be developed. The basin is so named because it features one of the world’s thickest deposits of sedimentary rock from the Permian geological period.

The Deep Yegua gas play consists of Eocene Age sandstone conventional reservoirs producing gas from deep, over pressured reservoirs. In Starr County the Deep Yegua is found between 11,000' and 15,000' feet in depth. This is a lightly explored formation with only 39 gas fields discovered along the trend, but these fields are highly productive with an average cumulative production of 28 BCF (billion cubic feet) per field. The vast majority of these fields have been discovered since 1975 meaning the Deep Yegua is an emerging play. By integrating data and geologic information from existing wells we have identified a large structural and stratigraphic trend running diagonally across Starr County. Baron currently has approximately 800 acres under lease; this acreage is located on top of this formation and holds high potential for natural gas accumulations."