EnDevCo Encounters Virgin Reservoir Conditions in Hunton Pay Zone

EnDevCo, Inc., the Energy Development Company, released important reservoir information from the first horizontal well drilled in the Company's Short Junction Field in Oklahoma.

The WSJU #109StH well was drilled as a re-entry from the surface location of the pre-existing WSJU #109 well and is the first well in the Field producing from a open hole horizontal lateral drilled 3,354 feet through the prolific middle Bois d' Arc member of the Hunton limestone reservoir.

The entire horizontal lateral was logged open-hole on drill pipe using the state-of-the-art TLC logging system supplied by Schlumberger. EnDevCo's evaluation of the porosity logs indicates 1,081 feet of porosity greater than 6% was cut by the well bore. In addition to the porosity logs, the Company also ran Schlumberger's advanced Formation Micro Imager (FMI) log which revealed multiple fractures and vugs (caverns) in porous intervals, many of which exceeded one foot in diameter.

"These horizontal well logs confirm our geological interpretation that during the Pennsylvanian period, the Short Junction Field was uplifted, which created a karst terrain. The resulting erosion of the Hunton limestone created a complex network of fractures and caves which are filled with oil, but are not all interconnected. As a result, many untapped pools exist within the Field that can only be produced by drilling horizontal wells. Our preliminary flow testing of the well indicates that much of the horizontal well bore has encountered virgin reservoir conditions even though the Field has been under production for over sixty years," stated COO Richard G. Boyce.

A recent flowing pressure test conducted on the well measured a static bottom hole pressure of 3,745 psia and after a 24 hour flow period indicated only 93 lbs of pressure drawdown. EnDevCo is currently installing an electric submersible pump in the well capable of moving up to 4,000 barrels of total fluid per day. Additionally, the Company is upgrading electrical service to the well site, installing additional oil storage capacity and improving the water disposal system at the Stage II oil processing facilities in order to produce the well at high flow rates. Once the infrastructure improvements are in place, the well will be subjected to an extensive flow test to determine the stabilized rate of oil and gas production.

EnDevCo is preparing the location for the WSJU #111StH, approximately 1/2 mile due east of the WSJU #109StH as the next step towards full horizontal development of the Field.