Resource target estimateFor the purposes of target estimation a...

Resource target estimate

For the purposes of target estimation a combined net sand thickness of 250 feet was used (125 feet each
for upper/lower sands) and a 50% net-to-gross ratio was applied. The recovery factor of 750 Thousand
Cubic Feet Equivalent (MCFE) per acre foot which was used is lower than the known recovery factor at
Port Hudson, however, the formation tests and sidewall cores indicated lower permeabilities than at Port
Hudson. Utilizing these parameters, a potential total of 1.2 TCFE of recoverable gas equivalent is
estimated. The drive mechanism is most likely to be water as in the Port Hudson Field.




ATOCHA PROJECT INFORMATION
The Tuscaloosa Trend was discovered in 197
(TCF) of natural gas and 120 million barrels of condensate over the past 32 years.
Atocha is located five miles north of BP’s Port Hudson Field which is the best producing field in the trend.
Atocha contains the HM Brian No.1 well which was drilled by Shell Oil in 1980. Petrophysical analysis has
concluded that this well contains over 125 feet of bypassed Tuscaloosa pay sand. With the benefit of
hindsight and some 30 years of experience in the Tus
discovery of this calibre would typically be completed for production.

Geographic Stratigraphy

Two sand packages are targeted in the project area with each of the upper and lower sand targets
averaging 250 feet gross thickness. Well log correlations indicate that the upper sand is faulted out in the
HM Brian No.1 well which is supported by the seismic data.

The sand with net thickness of 125 feet and porosity averaging 13%. These reservoir attributes compare
favourably with other productive wells in Port Hudson Field. For exa
produced over 60 Billion Cubic Feet (BCF) from coarse grained conglomerates with lower average
porosity.
Formation tests were conducted at five depths in the HM
indicated a formation pressure of 9,264 pounds per square inch (psi). The target sand was drilled with
12.2 pounds per gallon (ppg) drilling mud while the pressure equates to a 10.5
environment. Technical evaluation has indicated that the formation was drilled 1,450 psi overbalanced
which would have tended to force drilling fluids into porous and permeable intervals of the formation.
Even in an overbalanced environment, the mudlog indicates a continuous gas
the intersection. Near the bottom of the sand, the gas show ends abruptly indicating a possible gas/water
contact.
Formation test results of the HM Brian et al No.1 well
1975 by Chevron. It has produced over 2.8 Trillion Cubic Feet.