Oil and Gas Mineral Interest For Sale 2,145 acres in Cotton Valley/Hosston Sligo/Edwards Trend Exploration Trend Milam County, Texas Fee Mineral interest is located in shallow oilfield discovered in 1940 s. There is currently no production on the mineral tract but there is nearby shallow oil production. Huge Deep Gas Potential: A Discovery well drilled on the mineral tract in 1955 - The Texas Gulf Sulfur Baker #1 well was a deep gas wildcat well drilled in the Rockdale- Minerva Oilfield, a shallow oilfield discovered in the 1920 s. The Baker #1 well reached a total drilling depth of 12,600+ ft and drilled through oil and gas bearing formations known as the Taylor, Georgetown, Edwards, Silgo, Hosston, Cotton Valley, Smackover and Buckner Shale. Many formations had potential hydrocarbon shows, most likely natural gas vs oil. There were no natural gas pipelines or even a natural gas market in the area at that time, so a completion as a gas well would not have made economic sense. Mineral Leasing in the area has increased significantly in the last year. A large independent, XTO Energy, recently drilled a deep exploration well in the same county and has leased up significant acreage positions.
Log Analysis of Texas Gulf Sulfur Baker #1 well drilled in 1955 on subject acreage tract Schlumberger Petrophysical Analysis indicates multiple intervals of gas bearing sands and carbonates. Milam County, Texas
Engineering Report Summary of Texas Gulf Sulfur Baker #1 well drilled in 1955 on subject acreage tract Milam County, Texas Strong hydrocarbon shows from original well logs and the new Schlumberger logs indicate multiple potential pay zones in the Cotton Valley, Hosston, Silgo, Glenrose and Edwards formations from 4,000 ft to 9,000 ft below the surface. Cotton Valley - Zone from 7900 to 8510 consists of numerous sand and shale stringers. Appears to have very good potential. Count rates, water saturation, porosity, and characteristics in the variable matrix sigma readings indicate multiple sand lobes between shale with very good potential down to 8220. Hosston - Interval is a large carbonate formation extending from 6197 to 6386. Data indicates the presence of distinct gas, oil, and water intervals. Count rates in upper interval between 6197 and 6288 qualitatively indicates gas with fairly good porosity and good permeability. Water saturations are fairly low. Below this, from 6305 to 6360, count rates are indicative of oil. Porosity is good. Permeability is also good as indicated by the variable matrix sigma values. Edwards Lime - Upper Edwards Lime formation, from 4435 to 4488, shows outstanding potential as an oil bearing zone. Porosity and permeability are both good. Data indicates porosity is in the range of 18 20 porosity units. Water saturation is low. Separation in count rates suggests the formation contains oil.
JURASSIC COTTON VALLEY/HOSSTON TREND Dr. Robert Berg, former senior staff geologist at Texas A&M University reviewed the original Baker #1 well log and was of the opinion that the Hosston and Cotton Valley formations have good potential for oil and gas production. Seismic and other geological data indicates that the acreage could hold as much as 100 Billion Cubic Ft of gas and associated liquids (BCFGE). 2002 USGS Report on the Cotton Valley Trend. The Jurassic System is contains four Cotton Valley Formations that hold an estimated resource of more than 29 million barrels of oil, 605 billion cubic feet of gas, and 19 million barrels of natural gas associated liquids. Prospect Area Milam County, TX
REGIONAL SEISMIC DATA Seismic line across prospect area identifying potential pay zones Taylor est. 1,200 depth Geologic Time Edwards est. 4,500 depth Cretaceous Glen Rose est. 5,000 depth Sligo/Hosston est. 6,500 depth Cotton Valley est. 8,000 depth Jurassic Smackover est. 12,000 depth Deep Potential - Triassic era est. 15,000 + depth Triassic