Pipeline Resources, Inc. Oil & Gas Company

The Jupiter prospect is located 5 miles north of Banquete, Texas and immediately west of Corpus Christi, Texas. The purpose of the Jupiter prospect is to drill a 7050 foot well to test the Basal Frio and Vicksburg section.

The Jupiter prospect is located in the heart of the rich Frio-Vicksburg trend in Nueces County. The immediate area surrounding this prospect has made 2.6 TCF, and 88 million barrels of oil. Some of the more notable fields and their respective production are as follows:

Knolle Farms------------------Northwest-----------------------3.1 BCF & 649,814 B.O.

Riverside and East-----------East------------------------------118.5 BCF & 9.1 MM B.O.

Farenthold Field-------------- Southwest---------------------- 20.1 BCF & 2.1 MM B.O.

Aqua Dulce Field------------- Southeast---------------------- 2.4 TCF & 53.7 MM B.O.

Richard King Field----------- Southwest---------------------- 80 BCF & 22.5 MM B.O.

The Jupiter prospect is a multi target 7,000 foot top of the Basal Frio test well. Locally the top of the Basal Frio is primarily responsible for the huge oil and gas accumulations found in all the aforementioned fields. There is a multitude of trapping mechanisms that cause this production.

The Jupiter prospect is set up by the drilling of the Appell-W.F. London #1 log (1) in July 1957. The 1 st Koehler had a 51 cubic feet of gas test at 6155.5 feet. The 2 nd Koehler had a 10 foot gas and oil column from 6,195 to 6,206 foot level. A 10 minute formation test at 6,201 recovered 53.6 cubic feet of gas, 810 cc oil and 640 cc of filtrate and water (2300 ppm). The sampling pressure was 2,400#’s, and shut in pressure was 2,500#. This well was subsequently completed through perforations 6,193 to 6,196 feet, and came in flowing 32 million cubic feet of gas per day. The shut in tubing pressure was 2,084#’s. The well made 11,600 MCF gas and went to oil flowing at a rate of 110 BOPD on a 10/64” choke with 1250#’s tubing pressure. This 2 nd Koehler oil leg on water made 10,472 barrels of oil before watering out. Mapping on the base of the 2 nd Koehler ( Frio 6,200’) sand shows normal coastward regional dip up to the northwest, however the 2 nd Koehler sand buildup creates a northwest-southeast striking anticline. This anticline is due to the 2 nd Koehler sand buildup (see isopach). A well at the proposed location should be fifty feet higher than the Appell-London #1 log (1). If the sand deposition stays the same , or is greater as indicated by the isopach, then you could have a substantial oil column in the 2 nd Koehler ( Frio 6,200’) sand (see cross section).

The 1 st Koehler ( Frio 6,150’) sand is also prospective on this closure. This sand tested 51 cubic feet of gas, and 200 cc condensate with 1,600 cc of mud filtrate and water. The sampling pressure was 2,400 #’s, and the shut in pressure was 2,400#’s. This zone didn’t have any reported production, and is behind pipe.

The last zone of interest on the Jupiter prospect is the often overlooked Vicksburg section. The Sun-Stevens #1 log (2) was an offset to the Appell-London #1 log (1) discovery in July 1957. In March 1958 Sun moved southeast of the discovery well, and drilled a 7,200 foot well on the Stevens lease log (2). This well was low to the discovery well pay sand, however it was a deeper test to the Vicksburg sand series. The operator encountered some gas shows at 6,967 feet in the Vicksburg series. A 7 minute formation test was performed at 6,968.5 feet, and recovered 2.4 cubic feet of gas and 3,900 cc of water (4,400 ppm). The sampling pressure was 300#’s and the shut in pressure was 3,600#’s, which is slightly geopressured for this depth. The well was plugged and abandoned. The author found a well that is northeast of the prospect area 2.3 miles, that probably didn’t have 3 feet of sand, and produced .4 BCF in the exact Vicksburg zone. This example well drilled by Viking on the E. Kleberg lease was slightly deeper at 7,495 feet. The cores were 165 millidarcies, 194 millidarcies and 206 millidarcies, and all called water. This well averaged 680 MCF/day over the first full year production, and as mentioned, produced .4 BCF from 3 feet of sand. This Vicksburg zone appears to be overlooked in the past, because of its thin nature, and poor gas prices. However this zone appears to be a viable target. Deeper mapping and approximating points show the existence of a Vicksburg structure at 7,000 feet.

In summary, with the available geologic data it is our recommendation to drill a 7,050’ well to test the Basal Frio and Vicksburg section.

2 nd Koehler ( Frio 6,200’) sand
105 ac. (17’ sand)(450 bbls/AF)=803,250 BO and .89 BCF gas

Pipeline Resources, Inc.
P.O. Box 1969
57 FM 3356
Van Alstyne, TX 75495
Phone: 800-523-1560