 St.
John Heirs
Pipeline Resources, Inc. has recently made a
production acquisition in the St. John Heirs Field area of Refugio
County , Texas . The acquisition includes a producing oil well,
the #3 St. John Heirs, which was originally drilled by George
Taggert in 1958, as well as leases covering a total of 257.72
acres. Although the producing well is considered to be an excellent,
low risk investment, the acquisition was made with the primary
intent of conducting additional infield development drilling on
the leases.
The St. John Heirs 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 the 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 .
The #3 St. John Heirs was drilled in 1958 by
George Taggert and was completed in the FT-8 reservoir through
perforations at 5517-22 ft. The initial flow rate of the well
was 86.6 barrels of oil per day with a flowing tubing pressure
of 510 psi . The well has produced a cumulative total of 171,743
Bbls . and 31,978 Mcf through the end of February, 2005. The well
is currently being produced on beam pump at a rate of between
8-10 barrels per day. It is estimated that the well has an additional
16,589 Bbls . to produce.
The St. John Heirs was primarily developed in
the late 1930's through the 1950's. The field has an excellent
structural setting and has produced a total of more than 3.4 million
barrels of oil and 14 Bcf from more than 17 separate middle and
lower Frio reservoirs. Recently, we have been conducting aggressive
infield development programs on acreage just to the west of the
St. John Heirs lease. To date, a combined total of nine (9) new
wells have been drilled and successfully completed with no dry
holes. These new wells have encountered a combination of new reservoirs,
thin bypassed reservoirs, incompletely drained pressure depletion
reservoirs and water drive reservoirs with additional "attic reserves"
or untapped compartments. The very favorable results of this infield
drilling have confirmed that the reserve potential of the field
was not fully exploited by previous exploration due to the extremely
complex stratigraphy exhibited by the Frio section.
Several potential drilling locations are being
considered and an initial test well is scheduled for the third
quarter of 2005 with plans to drill an additional well every 60-120
days until the project has been completed. The available data
indicates that this additional drilling should significantly increase
the existing production on the lease and further enhance the value
of the lease.
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