St. John Heirs

Refugio County, Texas

In 2005, Pipeline Resources, Inc. made a production acquisition in the St. John Heirs Field area of Refugio County, Texas. The 257.72 acre acquisition includes a producing oil well, the #3 St. John Heirs. Although the well is considered to be an excellent, low risk investment, Pipeline made the acquisition primarily to conduct additional infield development drilling.

The St. John Heirs Field is in a portion of the Frio Trend unequaled for its prolific oil and gas production. Structurally, it is part of the Sam Fordyce-Vanderbilt fault zone which created abundant structural traps ranging from large anticlines to very subtle fault closures. Depositionally, this portion of the Frio is characterized by extensive highly porous and permeable sands that serve as excellent reservoirs. This structure and deposition 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.

The #3 St. John Heirs drilled in 1958 and completed in the FT-8 reservoir at 5517-22’. Initial flow rate was 86.6 barrels of oil per day (BOPD) with 510 pounds per square inch (psi) flowing tubing pressure. It made 171,743 BO and 31,978 thousand cubic feet (Mcf) of gas through February, 2005, and is now produced on beam pump at 8-10 BOPD. Estimated additional production is 16,589 BO.

The St. John Heirs was primarily developed from the 1930's -1950's. The field produced over 3.4 million barrels of oil (MMBO) and 14 billion cubic feet (Bcf) of gas from 17+ middle- and lower-Frio reservoirs. Pipeline conducted aggressive infield development programs west of the St. John Heirs. Nine new wells have been drilled and successfully completed. These wellbores exhibit a combination of new reservoirs, thin bypassed reservoirs, incompletely drained pressure depletion reservoirs and water drive reservoirs with additional "attic reserves" or untapped compartments. These results confirmed the field’s reserve potential has not been fully exploited due to its extremely complex stratigraphy.

The #3 St John Heirs continues to produce at a steady 7-10 BO/day. Production exceeds 250 BO monthly. A second well is under consideration, pending evaluation of the primary zone of interest in a well nearby on an offsetting lease, an oil sand at 4100’. This well is down dip to any location on the St John’s Heirs lease.