USA Superior Energy Plans Drilling 333-Acre 'Rust Lease' in Texas

Angelina County, Texas
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USA Superior Energy Holdings, Inc. has renegotiated the 333 acre "Rust Lease," in Zavalla, Texas, in Angelina County, and expects to begin drilling wells with 20 acre to 40 acre spacing this year. The depth of the drilling at the desired pay zone is 3,500 to 4,000 feet keeping in line with the company's focus on shallow wells.

International demand for oil is expected to continue rising as emerging markets develop their economies across the globe. This growth, coupled with a dwindling supply of traditional recoverable oil sources, is expected to continue driving oil prices to historic high levels through 2008 and beyond. Higher margins in the oil recovery business have now made it possible to apply USA Superior Energy Holdings, Inc.'s cased hole horizontal drilling and nitrogen generation technology to many existing properties.

Much of the composition of the field at the Rust Lease is volcanic lava which is pushed up into the overlying beds as serpentine plugs. This causes structural traps for oil and gas in the sediment above. The volcanic serpentine plugs have a unique magnetic signature from the iron within the lava. This signature can be identified from the air with sensitive magnetometers flown from an airplane.

In analyzing the lease, gas samples are extracted from 30 inches underground in a grid pattern every 300 feet. The gas is analyzed using a gas chromatagraph capable of reading individual gas components. Each sample station's value is mapped for each individual gas component to determine the area of leaking hydrocarbons. Positive results should show large values and a clustering of large values within a definable area. John Sandy, the chief geologist of Geochemical Exploration Services Inc., said, "These are very strong values and some of the strongest seen in 100+ surveys we have done in the Zavalla County area over the past 15 years. The readings indicate a strong probability of gas and condensate."


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