MSEV to Begin Operations at Manahuilla Creek

Goliad County, Texas
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Micron Enviro Systems says that operations on its Manahuilla Creek Prospect in Goliad County, Texas is scheduled to commence next week. A 6,700-foot test well will be located on approximately 1,265 acres of oil and gas leases covering the expanded Yegua trend. The Middle Eocene sands of the expanded Yegua trend of the onshore Gulf Coast basin has been a prolific over pressured gas-condensate producer with total gas production to date exceeding 800 billion cubic feet, with an estimated trend recovery close to 2 trillion cubic feet of gas. The first well is scheduled to commence on or about March 15, 2004 barring any unforeseen issues. Bernie McDougall, President of MSEV stated, "It is quite exciting to have so many different projects all being worked on at once. This is definitely the most active time the company has had in its oil and gas drilling. When this prospect starts it will give us two separate prospects occurring simultaneously. Considering our recently announced negotiations in Ukraine and our two recent successful wells, this shows that MSEV's management is busy trying to build the growth of the company."

Several fairly prolific fields have been discovered and exploited in Goliad County, the two most recent being the Jobar and Perdido Creek fields located approximately five miles north. The Jobar field is located in a normal pressured Yegua sequence with bottom-hole pressures of 2,600 pounds per square inch at 5,400 feet. The Perdido Creek field is down dip and geopressured, having bottom-hole pressures of 3,600 pounds per square inch at 5,600 feet with recoverable reserves of 1.1 million cubic feet per ac.feet and a condensate content of 30 barrels per million cubic feet. Initial production rates are approximately two million cubic feet per day. Both fields above were discovered by drilling 2-D seismic amplitude anomalies, which produced oil, gas and condensates in various proportions. Reservoirs are discontinuous small fluvial sand bars and channel deposits of the Yegua formation. Comparative 2-D data have identified similar amplitude anomalies within the Yegua sands on the Manahuilla Creek prospect which are much more extensive and contiguous. Geological interpretation indicates the sands were deposited as extensive deltaic sands at the edge of the ocean basin. As such, these deltaic sands are much more widespread and stratigraphically lower than the smaller discontinuous river deposits to the north.

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