 Refugio
Heard Field Prospect
Pipeline Resources, Inc. has recently acquired
leases covering a total of 1225 acres located in the Refugio Heard
Field area of Refugio County, Texas. The Refugio Heard Field is
located within a portion of the Frio Trend that is unequaled for
its prolific oil and gas production. Structurally, the area is
situated within the Sam Fordyce-Vanderbilt Fault zone that has
created abundant structural traps that range from large anticlines
to very subtle fault closures. Depositionally, this portion of
the Frio Trend is commonly referred to as Greta-Caranchua Barrier
Strandplain System and is characterized by the extensive deposition
of highly porous and permeable sands that serve as excellent quality
reservoirs. This combination of structural and depositional elements
has made this portion of the Frio Trend a premier producing area
for over 60 years that remains one of the most attractive areas
for additional development along the Texas Gulf Coast.
Previous exploration in the Refugio Heard Field has delineated
a geologic setting that is considered to be ideal for additional
infield drilling. The field has an excellent structural setting
and has produced a total of more than 9.31 million barrels of
oil and 46 Bcf of gas from more than 29 separate reservoirs within
the Frio and lower Miocene sections. Most of this production has
occurred from several intervals which are extremely complex stratigraphically.
Detailed mapping and a review of the production records suggest
that many of the reservoirs were not efficiently drained due to
this stratigraphic complexity and indicates that substantial infield
reserve growth potential exists.
The planned infield development program is expected to encounter
some combination of new reservoirs, thin bypassed reservoirs,
incompletely drained pressure depletion reservoirs and water drive
reservoirs with additional “attic” reserves or untapped
compartments. This expectation is based, in part, on the results
of several infield development projects that have been conducted
by Pipeline in nearby fields. Since 2001, numerous successful
wells have been completed on these projects. The attached appendix
contains several examples of these wells which serve to illustrate
the very significant potential that remains to be developed in
these premier multi-pay structural settings.
The economics of developing the remaining reserve potential of
the Refugio Heard Field should be excellent particularly at the
current level of oil and gas prices. With the assumption that
the previous exploration in the field was successful in exploiting
approximately 80% of the recoverable reserves present in the field,
additional recoverable reserves of about 2.32 million Bbls. of
oil and 11.5 Bcf of gas can be attributed to the field. Because
the reservoirs are typically highly permeable sands, flow rates
of 500-1000 Mcf per day for gas and 75-100 Bbls. per day for oil
are common. The available data indicates that ten (10) and possibly
based upon success as many as twenty (20) additional wells may
be necessary to develop the reserve potential of the leases.
An aggressive drilling program has been planned to develop the
remaining reserve potential of the Refugio Heard Field. An initial
test well is scheduled for the fourth quarter of 2006 with plans
to drill an additional well every 60/120 days until the project
has been completed.
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