Oil and Gas Prospects
CURRENT OIL & GAS PROSPECTS
a) Western Capital, Inc. recently participated with industry partners, in the drilling of an 18,324 ft. well, in Southeast Avery Island, Iberia Parish, Louisiana. The Iberia #1 well, was logged, and tested through perforations from 16,788 to 16,800 ft., in the Siphonina Davisi oil bearing sand. The well tested at a rate of 864 barrels oil per day, with 450 mcf gas, through an 18/64 choke. The well should be eminently capable of producing at a rate of over 1,000 bopd and 750 mcf gas once the hook up of production facilities is completed, and the well is turned on The well is situated in a known producing field, and the closest offset well, Cabot McIlhenny #3 is currently in production at a rate of 1,500 bopd , having been placed into production in April 2002. The second closest offset well, McIlhenny #2, has already produced 3.3 million barrels of oil, and 2.4 billion cubic feet of gas.
Western is making available a limited amount of production working interest in this well, to select investors on a first come, first serve basis. Obviously the drilling risk has already been assumed by the working interest partners in the well, so prospective investors at this point are looking at buying in to the production. For details and a brochure on the opportunity, contact Western Capital by phone, fax, or email. This information is provided in the “Contact Us” section on the home page.
b) Western Capital, Inc. is planning to drill a 9,000 ft. gas well on a proven undeveloped 50 acre farmout, in the North Monte Christo Field, Hidalgo County, Texas. This well will tap the F-14, and F-14A upper Frio sands, which have proven to be contain significant gas reserves, both in the field, and in the same fault block as our well. Our location is offset by a number of prolific wells, drilling time is anticipated to be relatively short, and the economics of the joint venture, indicate a multiple return on investment. Working interest is still available to a limited amount of select investors, and indications are that the project will fund quickly. Contact Western for details, and a brochure on the prospect. Again this is a typical Western Capital prospect, in that it fits the criteria of being located on a prime piece of acreage, in the heart of one of the biggest gas fields in South Texas, surrounded by significant offset production in the same fault block. In addition significant tax advantages accrue to investors in joint venture oil and gas projects ( contact your personal tax advisor ).For more information on the subject of tax treatment for oil and gas ventures, click on the heading “Tax Benefits” located on our home page.
The Macha Prospect
DeWitt County, Texas
The Macha Prospect located in DeWitt County, Texas, consists of 786.606 acres and will be drilled to + 12,700’TVD to test three objectives. The first objective is the gas productive 3,400’ Sand. The first key well is the Tri-C Resources #1 Mathews located just west of our lease. This well tested at the rate of 900 thousand cubic feet of gas per day. 3-D Seismic shows that our Gas anomaly is twice the size of the Tri-C Resources #1 Mathews Well at the 3,400’ horizon. (see enclosed 3-D map of 3,400’Sand)
Our second key well is the Humble Oil & Refining Company (EXXON) SW Terryville Gas Unit #1. Drilled in December 1962, this well has the Middle Wilcox Structure Sand at 10,300’ (see Middle Wilcox Structure 3-D). Our Lease is structurally high (updip) to the EXXON well as indicated on the enclosed 3-Dimensional Seismic map. We have significant gain up dip with 485 acres of structural closure creating 3 potential drill sites with an estimated 3-5 Billion Cubic Feet of gas per well recoverable.
Our third and main target is the Lower Wilcox Structure, which covers 1,000 acres up dip to the Humble Oil & Refining Company (EXXON) SW Terryville Gas Unit #1(see 3-D seismic map enclosed). This well made 950 Million Cubic feet of Gas at 11,900’. Our well locations are also on strike with El Paso and EOG’s Hope Field new discovery of 3 Wells, producing 76 Million Cubic Feet of Gas per day combined.
El Paso and Hunt Oil Company have both submitted farmout requests to us for drilling a well to this depth, but we declined their requests because we have most of the prospect sold to people that we have done prior business with.
Calculated reserves exceed 50 Billion Cubic feet of recoverable gas for the Lower Wilcox structure. Moving up dip from the SW Terryville Gas Unit to our lease provides a low risk, high potential location. The enclosed 3-D Seismic indicates excellent fault closure with estimated total reserves of 62.5 Billion Cubic Feet of Gas.
3,400' Gas Sand - 2.5 Billion Cubic Feet of Gas Avg. per Well = $86,626.00 to the 1% Working Interest
Middle Wilcox Sand - 4 Billion Cubic Feet of Gas Avg./Well = $138,600.00 to the 1% Working Interest
Lower Wilcox Sand - 16 Billion Cubic Feet of Gas Avg./Well = $554,400.00 to the 1% Working Interest
Total Estimated Reserves/Well = $779,626.00 to the 1% Working Interest
Above figures are estimated figures. 10% of revenue was deducted to offset estimated gas/oil taxes and LOE. Calculations were made using an average yearly price of $30/Barrel oil/condensate and $5.50/mcf of gas. No assurances are given that the well will encounter production, achieve the levels of production shown above or that the returns/payouts will be the same if the above production levels are met.
FUTURE OIL & GAS PROSPECTS
Consult this page on a regular basis for upcoming details on an exciting multiple well prospect, located on prime acreage in South Texas. Details will be posted as soon as the engineering work is completed.
Please fill out the form below or call directly to speak with one of the principals at 713-471-9727 to request more information.