Weatherford Barnett Shale &
Atoka Prospect


* * * SOLD * * *
Shale Gas & Basin-Centered Tight
Gas Sand Project

Parker County, Texas

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Republic Energy Drilling the Westbrook Unit #1H


EXECUTIVE SUMMARY

         The Weatherford Barnett Shale & Atoka Project is a multi-target natural gas development prospect based on advances in geologic, drilling, and completion technologies. Basin-centered Upper Atoka tight gas sands are over 350’ thick and are productive in the prospect area.  The Barnett Shale is over 240’ thick and has excellent potential in this area, which is also due to advances in technologies.  This is much more of a technology risk prospect with very little geologic risk.  The rocks are present and have proven to contain hydrocarbons.

          Upper Atoka basin-centered tight gas sands of Parker County were drilled and tested over twenty years ago with very limited success.  Research strongly suggests these reservoirs were severely damaged when drilled and completed.  There were enough successful completions to establish the existence of extensive gas reserves in place for these tight gas sands.  Estimates for Atoka tight gas reserves are in the 10’s of TCF of gas in place in the basin.  Successful completion and production of gas from other basin-centered tight gas sands support successful gas production in the Fort Worth Basin.

         The Barnett Shale produces gas in many areas of Parker County and should be over 240’ thick in the prospect area.  Regional mapping indicates a 400’ throw reverse fault near this area and probably trending along the eastern edge of the prospect.  This has the potential of fracturing the Barnett Shale and creating a "Sweet Spot" for production.  Recent Barnett Shale gas completions using much smaller water fracs south & west of the Weatherford Project are very supportive of  successfully completing the Barnett Shale in this area. 

The Weatherford Barnett Shale & Atoka Prospect has excellent potential for economic hydrocarbon success.   The Upper Atoka tight gas sands calculate to have in excess of 750 MMCF of recoverable gas per well.  The Barnett Shale also has the potential to add an additional 750 MMCF or more to the wells total reserves.

            The Weatherford Barnett Shale & Atoka Project consists of over 2,100 acres to date.  The plan is to put together leases to form a 640-acre unit that can be pooled and then held with a single well.  The Atoka and Barnett Shale can be drilled and tested with the production holding the pooled acreage.  Once a focused drilling program can be established, then the pooled acreage can be drilled with offset wells.  We expect the drainage will be between 40 to 80 acres.  This will give 7 or more offsets to be drilled.  This is the same approach Mitchell Energy used to establish their “gas farming” operation in the Barnett Shale.

            We are offering the project for $ 125 per acre for a 79.33 percent net revenue lease on the 2,100+ acreage.  An AMI would need to be established and an override provided in the AMI that is determined by the purchaser and seller.  We have an excellent landman and could continue the leasing as desired by the purchaser.  Our focus has been to get the large blocks of acreage and then start adding smaller tracts to that acreage.  This creates a barrier to entry for competitors that try to offset us later.

            We are presently leasing and still tying some of the blocks together.   We are also exploring for additional sites where this “gas farming” procedure might work in the Fort Worth Basin.  The Barnett Shale & Atoka Tight Gas Sands are extensive targets and are considered giant status as a potential gas field.

           This is a complex project that can be approached with different strategies.   We are open to new ideas and feel we are flexible enough to make this project work for the right operator.  Contact us for additional information.