LONE OAK 1, 2, 3 & 4 PROJECTS

Overview

The Lone Oak Prospect is located in the prolific Frio-Vicksburg trend of Chambers and Galveston Counties, Texas, (Houston Salt Basin) where over 4 TCFG and 4 BBO have been produced since 1900. The prospect is nine miles northeast of Eagle Bay Field, which produced 11 O+BCFG and 10 MMBC from Oligocene age textularia warreni (Vicksburg) sandstone reservoirs. The prospect consists of three buried high side closures, in the Vicksburg, situated immediately up thrown to a large regional growth fault and a high side closure at the Frio tex miss and the anomalina interval. Similarly, the trap style at Eagle Bay Field is a buried high side closure up thrown to a branch of the same regional growth fault at Lone Oak. The prospect has multiple primary objectives which are the same textularia warreni sands produced at Eagle Bay Field as well as otherfields in the trend. The prospect is defined by excellent quality Proprietary 3-D seismic tied directly with subsurface well control from a check shot survey and a synthetic tie.

Lone Oak is located within the Houston Salt Basin which has been a prolific producer for the Frio-Vicksburg trend of Southeast Texas. The basin extends from eastern Brazoria County eastward through Galveston and Chambers Counties and into Jefferson County. A Vicksburg east to west trending growth fault sets up the trend giving its northern boundary and a series of down to the coast growth faults create structural traps both up thrown and down thrown. At the Basal Frio down through the Vicksburg the basin sees an increasing amount of buried faulting and counter-regional dip that is not present in the Upper to Middle Frio. Shallow piercement salt domes, regional growth faults and buried growth faults represent most of the major structural features found within the Houston Salt Basin.