As well as constructing, operating, and maintaining hundreds of miles of natural gas gathering pipeline, compression, and dehydration facilities; cumulatively producing more than 15 BCF of gas and 750,000 barrels of oil.
After thorough evaluation of the Company’s newly acquired assets, the Development Team at TriStone believes there exists a great opportunity for the Company to expand rapidly over the next 12 months through the drilling and development of the potential oil reserves located on the ‘Viola Prospect’ acreage and by taking full advantage of the Team’s existing relationships and superior knowledge of the Cherokee Basin.
Hatch Field Lease, Coffey County, Kansas, U.S.
Cherokee Basin – Multiple Sand & Limestone Formations:
Our primary focus is on the ‘Squirrel Sand’ for the initial development on the Viola Prospect.
Squirrel Sand Characteristics – Upper Squirrel Sand Section:
1421 – 1442 feet: Sand; grey, tan, very fine-grained, subrounded, fair sorting, friable, fair intergranular porosity, trace green clay infill, micaceous, good brown to dark brown stain and saturation, good show of free oil and good odour in fresh samples, calcareous in part (83 – 90 unit gas kick).
Squirrel Sand Characteristics – Lower Squirrel Sand Section:
1502 – 1526 feet: Sand; white, clean, medium-grained, subrounded, fair to good sorting, friable, good intergranular porosity, brown to dark brown and black stain, a show of free oil and questionable odour in fresh samples (68 – 100 unit kick).
Viola Prospect Key Points
Depth: 1,000 – 2,600 feet
Hatch Field Lease acreage: 2,200
Existing Geological information
Existing Wells, Equipment and Infrastructure
Over 40 miles of gas pipeline
Over 40 miles of a water pipeline
The company determined after further evaluation of the geologist oil well drilling reports and thorough analysis of the open-hole logs taken after drilling, that the Squirrel sand formation located within the Hatch Field at approximately 1,500ft deep showed excellent potential for oil production. The company then proceeded to test the Squirrel sand formation on the Hatch lease located within the Northeast quarter of Section 2, Township 22 South, Range 13 East, Coffey County, Kansas, by commencing with the re-completion of the No. 41 coalbed gas well to a Squirrel sand formation oil well.
The Company believes the Viola Prospect represents an excellent opportunity for land acquisition and development due to the following unique circumstances:
Prior Proven Development:
The previous lease owner had drilled throughout the acreage upon the prospect’s acquisition, thereby providing geological drilling reports, open-hole logs, water-flood engineering reports and historical drilling and production analysis across the entire 2,200 acres.
Favourable Development Infrastructure:
The previous lease owner had already spent millions of dollars on drilling wells, installing lease equipment, gas and water collection infrastructure, tank batteries and disposal wells.
Experienced Management Team
The management team and operating personnel who will execute the Company’s Viola Prospect are highly qualified and experienced in the development and implementation of projects of this scale. The Company’s Kansas and Oklahoma based field management team has more than 35 years of industry experience.
Viola Prospect Area:
The ‘Viola Prospect’ Area is located in the central portion of the Cherokee Basin structural province of southeastern Kansas. This maturely explored basin is best known for its oil and gas production from shallow Pennsylvanian Sandstone reservoirs. In the immediate prospect area, oil and gas production occurs from numerous pay zones ranging from Pennsylvanian to Ordovician in age at depths of 1,000 to 2,600 feet. Both stratigraphic traps in sandstones and structural traps in carbonate rocks are common producers in the area.
Our team’s geological research and oil production economic models for the targeted oil reservoirs of the Viola Prospect indicate that there is excellent potential for commercial production of oil. We believe that the information reviewed provides ample justification to implement the Company’s proposed development program. Also, there exists considerable upside potential for future development of multiple oil and/or gas projects on the Prospect’s approximate 480-acre oil and gas lease block.
As exploration and development of coal and shale formation gas continue to expand throughout the Cherokee Basin, there exists a considerable amount of upside potential for natural gas production on the lease. The main upside potential is derived from the coal and shale formations that are shown to exist on the lease which may prove to be commercially produced in the near future if the price for natural gas continues to rise.
For further information regarding our services as an oil and gas venture capital firm, please contact us and we shall be happy to oblige in assisting you further.
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