East LaSalle Field

Jackson County, Texas

In 2006, Pipeline Resources, Inc. and its partners purchased leases in Jackson County which became the LaSalle Field Prospect. These leases were acquired for the purpose of conducting an aggressive infield development program. The field was identified as a geologic setting considered ideal for additional infield drilling. To date, six new wells have been successfully drilled and completed on the prospect acreage. These wells contain multiple pay zones which represent a combination of new reservoirs, thin bypassed reservoirs, incompletely drained pressure depletion reservoirs, and water driven reservoirs with additional “attic” reserves. The pay zones encountered are perhaps most notable as being very high quality reservoirs capable of producing at very favorable rates. At least two additional wells are planned for this prospect.

Because of the success on our original LaSalle Field Prospect, additional geology was done in the area and that work resulted in the acquisition of the 188.246 acre East LaSalle Field.

The East La Salle Field is a well-defined anticlinal feature elongated in the northeast-southwest direction parallel to the trend of a significant fault. Nearly all production from the field is structurally controlled to some degree. Subsurface mapping along the trend of the structure indicates the presence of a smaller structural anomaly located about one mile east-northeast of the main feature. Such small “satellite” structures are often found in association with larger structures. The presence of minor production and/or shows in multiple zones in several wells that map to be located on the flanks of this small structure indicate this feature does trap hydrocarbons and suggests a well drilled on the crest should encounter multiple pay zones. Based on the available data, potential reserves of about 1.5 billion cubic feet (BCF) of gas can reasonably be expected to be associated with this structure.

The Gallia-Wright #1 was successfully drilled on the East LaSalle property in June, 2009. The well had five potentially productive zones and came on at over 600 thousand cubic feet per day (Mcf). The well is currently producing over 30 million cubic feet (MMcf) of natural gas per month.