Bowtie Project
BOWTIE WEST HAS THE POTENTIAL FOR 33 BCF GAS
- Gross potential P50 is estimated at 33 BCF of gas
- Objective reservoir with high production rate potential delivering high rate of return
- The Company has acquired an initial participating working interest (“WI”) of 20% which will be reduced to a net 18% working interest after back-in on the initial well.
- Net revenue interest is approximately 72% after royalty’s and over-riding interests.
- The project adds another low-risk, high impact project to the Golden Gate portfolio.
- This new project is consistent with Golden Gate’s stated strategy to focus on hydrocarbon exploration onshore in the Gulf Coast region of the U.S. (Texas and Louisiana)
Details of Farm-in
The Bowtie project is located in Brazoria and Matagorda County, Texas as a non-operating participant. Total reserves are estimated (P50) to be 33 BCF of gas. Golden Gate has executed a participation agreement acquiring a 18% working interest in the project. The leases cover over 500 net acres and is in close proximity to existing production. Drilling is expected to commence in July 2008 and take approximately 30 days to reach total depth.
The Company drilled the bowtie east #1 well, which was subsequently plugged and abandoned. The results at Bowtie East do not impact our favourable view of the “Bowtie West” prospect which is expected to be drilled in the second quarter this year. Further analysis of analog data supports a potentially larger structure than originally anticipated. Additional acreage has been leased to correspond with the new data. Overall, management expectations on Bowtie West have improved.
General Description of Prospect
The prospect comprises one structures that are separate high-side fault closures, within a few miles of two large producing fields (500 BCFE and 4.5 TCFE), along a regional trend where the vast majority structures of this type are found to be productive. The fault traps are identified by 3D and well data. Prospective gas-condensate sands are expected between 9,000’ to 12,500’.
The productive Tex Miss reservoirs
are found at drilling depths of 9,000’-10,600’. These sands were deposited
as a barrier bar – strandline sequence that runs roughly parallel to depositional
strike. Growth faults expand the sands and trap hydrocarbons along the
axial crest of the structure. Progressive thickening of the sedimentary
prism into the growth fault causes a structural shift. With increasing
depth the deeper targets “roll out” from under the shallow accumulation
and trap on the southerly limits of the shallow field. Production has
been established high-side to the main fault five miles to the north by
a well in which 120ft of Vicksburg pay was logged in 2001. This well
had an initial rate of over 8mmcfpd & 500 bopd, which is a typical
example of the high productivity of these zones. Virtually all of the
surrounding Frio fields are trapped on similar fault closures, most with
very large reserves. Faults seal by mineralization adjacent to the fault
surface. The shallower (~9,000ft) Tex Miss sands (Truitt & Gravier)
produce with a water drive with an accompanying weak gas-cap expansion.
Lower Frio and Vicksburg reservoirs (11,500ft – 12,500ft) are geo-pressured
and typically produce as a depletion drive reservoir.
The high probability of success attributed to this prospect is
a result of:
- high quality, 3D seismic data which define the prospects;
- down-dip well with good shows at primary objective; and
- numerous direct, local analogs for these seismic characteristics and trap geometries.