AMBERJACK PROJECT

Geological Discussion

The Amberjack 3-D Prospect is an amplitude supported, 10500’, normal pressured, drilling venture located in inland waters of Plaquemines Parish, Louisiana.  The project targets multiple Middle Miocene (Tex-W, Big-H) sands on a well defined structural closure.  This test is surrounded by quality, mature, fields which define the prolific nature of the objective section.  Reserve potential for the prospect is 10.7 BCFE, with an expected flow rate of 5-8 MMCF/D.

The fields surrounding the Amberjack Prospect have produced vast quantities of oil and gas from the objective sand section in numerous fault blocks.  These fields are East Point a la Hache, 1.5 miles to the southeast, 13.9 BCFE; Pointe a la Hache, 3 miles to the southwest 175 BCF and 15 MMBO; Delacroix Island Field, 3.5 miles to the northwest, 230 BCF and 24 MMBO; and E. Crooked Bayou Field, 4 miles to the northeast, 8 BCFE.  It is important to note that all four of these fields produced significant quantities of oil and gas from the subject prospect objective section, the UL-4 and UL-5.  East Pointe a la Hache is particularly significant since the 13.9 BCFE is produced came from only 2 wells in one sand, the UL-5.  Both Pointe a la Hache and Delacroix Island fields are old fields with multiple pay sands that were produced on a unit basis, so exact UL-4 and UL-5 cumulative productive production in undeterminable.  Log and test data clearly establish these sand as significant producers in each of these fields. East Crooked Bayou field also has significance in that it is the only amplitude based 3-D discovery in the area.  This 2001 discovery was defined using the same Western 3-D data set that defines the Amberjack prospect and is therefore an excellent analogy.

The structural configuration of the Amberjack Prospect is a double up-thrown closure between down-to-the-north and down-to-the-south faults.  A key well, the Bass #1 SL 16339, is present in the prospective fault block approximately 110’ of net sand.  Both sand shows some regional variation, but are present in quantities similar to the Bass well in all wells in the area immediately surrounding the prospect.

The Bass #1 SL 16339 well also provides a key point of sand control, having all objective sands present.  These sands are the UL-4 sand with approximately 70’ of net sand and the UL-5 sand with 110’ of net sand.  Both sands show some regional variation, but are present in quantities similar to the Bass well in all wells in the area immediately surrounding the prospect.

The greatest strength of the Amberjack prospect lies in the geophysical interpretation with demonstrates a 90 acre UL-5 amplitude anomaly of exceptional quality.  This anomaly is the same type of high amplitude, low frequency, trough-peak geophysical event witnessed over the other UL-5 reservoirs in the area.  The amplitude anomaly fit’s the structural picture and displays the highest amplitude near the crest of the structure, two characteristics which area excellent gas indicators.  Also, the seismic gather data displays an AVO anomaly in the prospective amplitude consistent with the AVO’s seen in other fields in the area.

In addition to the UL-5 anomaly seen at 10,200’ is a 45 acre UL-4 at 10000’.  While the UL-4 anomaly displays the same anomalous characteristics necessary to define it as a quality amplitude objective discussed above, it is not as high amplitude as the UL-5 sand.  Pay thickness, reservoir size and therefore ultimate recoverable reserves are likely lower than those expected in the UL-5 sand.  (See reserve estimate below)

The third Amberjack prospect objective in the lower UL-5 sand at 10350’.  The is no obvious amplitude anomaly associated with this sand section, making this a purely structural objective.  The sand is still a quality objective since gas reservoirs in the area frequently do not have associated amplitude anomalies.  Also, since the upper UL-5 sand is a very high amplitude of “hot” it is possible that a lower UL-5 amplitude could be masked.  This masking effect is common for multiple pay structures in southeast Louisiana.

One additional geophysical characteristic both the UL-4 and UL-5 amplitudes display is the presence of the anomaly in an area that is distinctly away from and up-dip to established wet sands in the Bass #1 SL 16339 well.  The significance here is that a geophysical calibration point for clean wet sand is established.  In the area up-dip of the well the amplitude changes character and displays all of the previously discussed anomalous characteristics.  This calibration significantly reduces risk, making the drilling of a gas bearing sand far more likely.

Reserves

Conclusion

The Amberjack Prospect is an opportunity to test a amplitude of exceptional quality on a tightly controlled and well defined up-thrown structural closure.  Nearby well control provides very positive sand control and geophysical calibration which significantly reduces risk.  The prospect sits in a fairway outstanding production from numerous fields which provide excellent production and geophysical analogies.
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(**)            detailed analysis performed and provided by Yuma Exploration and Production Company, Inc.