Mission River

Refugio County, Texas

Pipeline Resources acquired several leases located in the Mission River Field area of Refugio County, Texas. The Mission River Field is located within a portion of the Frio Trend unequaled for its prolific oil and gas production.

Structurally, the area is situated within the Sam Fordyce-Vanderbilt Fault zone, which created abundant structural traps that range from large anticlines to very subtle fault closures. Depositionally, this portion of the Frio is commonly referred to as the Greta-Caranchua barrier strandplain system, characterized by highly porous and permeable sands that serve as excellent reservoirs. This combination of structural and depositional elements made this portion of the Frio a premier producing area for over 60 years. It remains one of the most attractive areas for additional development along the Texas Gulf Coast.

Nine wells, the Scanio #1-8 and the St John Heirs, have been drilled on this project. One, the Scanio #3, is plugged and abandoned. The #8 well was a dry hole. Current monthly production exceeds 350 BO and 2500 thousand cubic feet (Mcf) of gas. Several reworks are planned for 2010.