Pipeline Resources has a leasehold interest in the Spanish Camp prospect which is comprised of one lease. The Corbett lease has 1173 acres and is located in Wharton County . The area is noted for its prolific shallow gas production from the Miocene and Frio formations. Several major discoveries have also been made in the area, especially in the over-pressured Cook Mountain and Wilcox Formations. In 1998, a 3D seismic survey was conducted across the area to delineate prospects in these deeper formations in order to define by-passed shallow gas reservoirs.
In July 2000 development of the Corbett lease began, and to date seven wells have been drilled. Two of those wells encountered the Miocene sand productive and produced 750 MMCF and 680 MMCF respectively per day through 2003. The dry holes that we encountered, when correlated to the 3-D seismic, determined the shows to be very thin shaly and hard limy reservoirs incapable of production. Even with the dry holes, this lease produced over 2 billion cubic feet of gas and, at present, is down to 25 MMCF per day. There are no future development plans for the lease at this time. |
