Eldorado Exploration Adds Multiple Prospects
Eldorado Exploration has entered into an agreement with Stable Resources of Lubbock, Texas, to acquire 4,300 acres in the Palo Duro Basin in West Texas. The acreage covers eleven prospects identified by Passive Induced Polarization (PIP), a process used by Eldorado to identify potential oil and gas accumulations. The wells will be drilled to test Canyon Reef formations which could have recoverable reserves of 500,000 BBLS or more per location. At prices of $60 per barrel (42 U.S. Gallons), each well could produce $30,000,000 over 15-20 years. Eldorado would earn a 75% working interest in each well. The company now has rights to drill on 62,000 acres under lease in Texas and New Mexico, with over 100 identified well locations.
The first large well to be drilled on a PIP-located site for Eldorado is expected to start drilling in Texas on June 15th, 2006. The second well in New Mexico will drill soon after in July. Additional wells will depend on rig availability.
Eldorado Exploration, Inc. is an independent oil and gas company
that utilizes a process called Passive Induced Polarization, "PIP," to
detect electromagnetic signals given off of some geological anomalies.
In most cases a positive response indicates a hydrocarbon accumulation
and a negative reading almost is always a dry hole. When used with the
standard geological tools and methods, the PIP process enhances the
odds of success for discovering oil and gas. Stable Resources LLC has
recently completed a gas well discovery in Runnels County, Texas,
using the PIP process.
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