Riverdale is in final negotiations with Nettlecombe Oil Co., Inc., a geophysical consulting company located in Houston, Texas, to provide 3D seismic bright spot technology on this prospect. Nettlecombe has been successful in the identification of shallow Frio and Miocene gas sand production on the Gulf Coast, and its technology has had a 92.3% success rate in those sands over the past 15 years. Nettlecombe will also utilize on these prospects, in recent addition of state of the art process technology, utilizing Neural Networks and Artificial Intelligence, which are powerful extensions to its 3D seismic analysis.
One prospect area encompasses acreage with several separate bright spot locations, with some locations having multiple pay potential. The depths of the prospective gas sands range from 2100 to 5000 feet; and, cover an area from 30 to 100 acres each. The estimated gas reserve for 6 projected gas sands could be as much as 3,000,000 MCF. At a market price of $7.50 per MCF, the gross revenue would be $22,500,000. The estimated development expense is $1,500,000.
Riverdale looks forward to the opportunity to develop prospects that are based on state-of-the-art science; situated in known areas of economic success; and are very cost-effective to drill and complete. The company intends to begin development of these prospects in the third quarter of 2007.
Riverdale was formed in August 2005 to engage in the acquisition of currently producing properties, leases with proven reserves, and the exploration, development and production of oil and natural gas properties. The principal assets of the Company are composed of: (i) a 75.00% working interest (52.50% net revenue interest) in five existing wells (the Foster Workover) located on the Foster Lease in Jim Wells County, Texas consisting of 600 acres with additional drill sites; (ii) a 37.50% working interest (26.25% net revenue interest) in one existing well (the Koomey #2) located in Waller County, Texas; (iii) a 5.50% working interest (3.85% net revenue interest) in 2 existing wells (the Koomey #4 and Koomey #5) located in Waller County, Texas; (iv) a 5% working interest (5% net revenue interest) in a salt water disposal well (the Koomey #1) on one acre located in Waller County, Texas; and (v) a 75% working interest (52.50% net revenue interest) in 2 existing wells (the Bains #A-1 and the Vie-Del #4-1) and all related equipment (i.e., tanks, wellhead equipment, etc.), which covers a total of 480 acres and is located within the S.E. Raisin City Oil Field region of Fresno County, California.
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