The report prepared by Kevin Hill, Geophysicist, states that these prospects have a combined potential reserves of approximately 570 BCF total of natural gas. Given the current natural gas prices, the prospects could potentially have significant value.
Kevin Hill bases his conclusions on the high quality 3D seismic data and the fact that all three prospects are located in the Avoca Mineral Area, one of the richest natural gas producing areas in Louisiana, the 3rd largest gas producing state in the USA.
According to the report, "The Avoca Minerals Area has shallow bright spots and three separate deeper prospects that are defined by sub-surface well control and 3D seismic data. Each prospect has significant reserve potential with varying degrees of risk. The shallow bright spots have recently been found to be gas productive, and many other shallow anomalies remain to be tested. The deeper prospects have good structural closure seen on 3D seismic data. Well control shows good sands in the prospective intervals. While the area is generally described as marsh, all of the prospects can be drilled from dry land locations with easy access. This saves up to 50% of the costs incurred when wells are drilled over water."
"Falcon's Avoca Mineral Prospects have perfect location, very attractive potential reserve numbers and involve relatively low exploration risks," said Kevin Hill, Geophysicist. "A discovery in the Marg 3 prospect, which has a maximum reserves potential of 500 BCF, would become a company maker. This prospect is located close to the Garden City and Paterson Fields, which have already produced over 688 BCF and 250 BCF of gas respectively since their discovery in 1977. Success with the DB3 prospect (20 BFC of proven undeveloped gas) could fund the drilling of the other two prospects and still leave a fine return on investment. A Criss A prospect (50 BCF of gas potential) discovery would also yield a handsome return."
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