Simmental Prospect

Pipeline Resources, Inc. proposes to drill a 4750' well in Colorado County to develop the Frio 3750' reservoir and test a Frio 4050' seismic amplitude anomaly. The objectives have a combined reserve potential of 1.416 Bcf. 

The Simmental Prospect is a low risk Frio/Miocene prospect that targets two amplitude anomalies. The proposed location will test the 3750' Frio reservoir updip to the SPG Hruzek #2, which logged 5' of gas on water in a 20' thick sandstone at 3955'. The Shell East Graceland 3D reveals a seismic amplitude anomaly at this objective which covers 37 acres. The primary objective has a potential of .888 Bcf and a conservative reserve potential of .277 Bcf.

The secondary objective for Simmental is the Frio 4050' seismic amplitude anomaly which covers 22 acres. This objective is the analogous section to the Rhinehard 4200' reservoir which produced 700 MMCF just 1.5 miles to the NNW. This zone has a reserve potential of .528 Bcf and a conservative reserve potential of .11 Bcf.

The Simmental Prospect is on trend with prolific shallow producers. Shallow Frio/Miocene reservoirs in the immediate vicinity have produced as much as 7.9 Bcf. Area Frio peak rates average 600 MCFD. Larger reservoirs produce at rates as high as 2.4 MMCFD. Area Miocene peak rates average 390 MCFD. Larger reservoirs have produced at rates as high as 850 MCFD. The majority of the Miocene production and approximately a quarter of the Frio reservoirs in the trend are not associated with amplitude anomalies, so there is a good chance that additional reservoirs will be discovered in any well drilled in the trend. Non-anomaly associated pay in the Frio and Miocene increases the reserve potential.

Examples of Analogous Frio/Miocene Reservoirs in southern Colorado County :

Nada Field
Frio 3650' Reservoir 5.3 Bcf 2 wells (.9 Bcf remaining) 2 MMCFD
Frio 3970' Reservoir 2.75 Bcf 4 wells (1.2 Bcf remaining) 2 MMCFD
Miocene 2300' Reservoir .63 Bcf 1 well

Eaton Field
Miocene 2100' Reservoir 7.9 Bcf 3 wells still active
Miocene 2000' Reservoir 2.3 Bcf 2 wells still active

Root Field
Miocene 2170' Reservoir 2.9 Bcf 3 wells active
Miocene 2150' Reservoir 1.02 Bcf 1 well active

Schiurring Field
Miocene 2250' Reservoir 1.48 Bcf 1 well active

Garwood, N.E. Field
Miocene 1900' Reservoir 1.4 Bcf

Partners

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

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