The Company feels this is an analog field and the down trend reservoir is the primary target on the Brazos River Prospect. Based on geological and geophysical similarities with the Ocho Juan Field, the total potential reserves at the Brazos River deep play are 8.33 million barrels of oil and 7.21 billion cubic feet of natural gas.
Geologically, basin margin normal faults define preferred areas of reef growth during Pennsylvanian time. These reefs are prime exploration targets because of their large oil and gas reserves. Underlying the Ellenburger, monoclinal and subcropping oil and gas traps are also associated with these basin margin fault trends. The geological and geophysical similarities of the Brazos River Prospect with the Ocho Juan (Canyon Reef) and Swenson Garza/Barron (Ellenburger) oil and gas fields indicate success for the initial prospect well.
The Company has estimated that at the Texaco Fisher No. 1A, reserve potential is 320,000 barrels of oil with 285,000 mcf of natural gas from the Canyon Reef. As well, the potential for 275,000 barrels of oil with 230,000 mcf of natural gas exists in the Ellenburger.
With 15 offset wells planned, total reserves for the Brazos River Prospect from the Canyon Reef and Ellenburger zones are estimated at 8.33 million barrels of oil with 7.21 billion cubic feet of natural gas. At today's oil and gas prices of $31/barrel of oil and $4/mcf gas, these potential reserves are valued at $286,840,000.
"The development of this deep play on the Brazos River Prospect in conjunction with our joint venture partners Exor Oil Co. L.L.C of Dallas Texas, is a very exiting opportunity for the Company" states Dixon Oil and Gas President, Mr. Shane Lowry. "Based upon the track record of Exors' exploration and development team, they have been responsible for the development of many significant oil and gas fields. We feel that the potential degree of success of this offset well is high".
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