Posted by
theoilpatchplug on Thursday, December 07, 2006 8:09:07 PM
Just recieved this writeup from a PhD Geologist and Geophysist concerning our prospect.
CENTRAL TEXAS TRAVIS VOLCANIC MOUND PROSPECTS
A Texas based company has leases on a magnetic anomaly in central Texas that appears to be a Travis volcanic mound, and thus a potential undiscovered oil field. Travis mounds are ancient volcanoes that erupted during the Late Cretaceous (70 to 80 million years ago) and formed mounds on the shallow sea floor. The mounds were partially eroded and then covered with younger sediments. The mounds in central Texas are generally referred to as “Travis volcanic mounds” for the surface exposure of one of these mounds in Travis County. The mounds are commonly called “serpentine plugs” because the mineral serpentine commonly occurs in the mounds. Some of the minerals that occur in these mounds are magnetic, hence the magnetic anomalies over these mounds. The mounds have formed structurally high areas in the subsurface that provide traps for oil and gas.
Thirty-eight oil fields in central Texas are associated with Travis volcanic mounds. These fields range in size from 3000 barrels to 11,500,000 barrels of oil recovered, and occur at depths between 900 feet and 1800 feet. Some wells in the mound fields have produced as much as 5000 BOPD (barrels of oil per day) initially, but the initial production of most wells was between 25 BOPD and 100 BOPD. Most of the better wells were located near fractures that are prevalent in the mounds. Most of the oil fields that are associated with Travis volcanic mounds were discovered in the 1930’s, 1940’s, and 1950’s, although six fields were discovered between 1913 and 1929 and three fields were discovered between 1964 and 1977. Over half of the fields are still active including some of the early discoveries. Some of the first oil fields found on the Travis volcanic mounds were discovered by farmers drilling water wells.
Oil is found in at least four different geologic settings in the mounds. Much of the oil occurs in porous areas within the generally altered volcanic igneous rocks that form the mounds. Some oil is found in sedimentary rocks (sandstones and limestones) within the mounds, some oil occurs in sedimentary rocks that overlie the mounds, and some oil is trapped in sedimentary rocks that pinch out on the flanks of the mounds. Thus there are non-productive areas within the confines of the fields associated with the mounds. This prospect appears to cover about 300 acres.
The magnetic anomaly associated with this prospect is comparable to the anomalies associated with one million to three million barrel fields, although the size and intensity of magnetic anomalies is sometimes misleading. Most of the magnetic anomalies that occur in the area are associated with Travis volcanic mounds. The other magnetic anomalies have not been drilled but are believed to be Travis volcanic mounds. A geochemical survey acquired recently found significant (anomalous) concentrations of petroleum hydrocarbons in the soil over the prospect. This suggests minute leakage from an accumulation of hydrocarbons at depth. Additionally, the operator has acquired satellite data that suggest the presence of soil within the prospect that has been altered mineralogically. This condition has been observed in soils over known oil and gas fields. All of these data together suggest a fairly high probability that a commercial accumulation of hydrocarbons (likely oil) exists under the prospect.
There is no record of a well having been drilled on the prospect. There are few records pertaining to wells that were drilled before 1930, so it is possible that an old unrecorded dry hole has been drilled on the prospect. A local fellow born in 1920 is not aware of an old well having been drilled in the prospect area, however. About seven or eight percent of the wells drilled within the Travis volcanic mound fields are dry holes because they were drilled in the small non-productive areas within most of the fields. We believe that there is a fairly high probability that this prospect is a Travis volcanic mound with a commercial accumulation of oil. There is a five to ten percent probability, however, that the first well would miss the oil field and be a dry hole. A discovery well would likely find a field with 500,000 barrels to 3,000,000 barrels of oil recoverable, although the field could be larger or smaller. A dry hole (1300 feet deep) would cost about $80,000, and a completed producing well would cost about $200,000 or less. This is a very small risk when one has the potential to find $10,000,000 to $60,000,000 net income. Additionally, the operator has two other Travis volcanic mound prospects that would be available.