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Message: Deep well permit location well #6, HUGE NEWS

Deep well permit location well #6, HUGE NEWS

posted on Sep 19, 2005 04:31PM
Deep well permit location #6/HUGE NEWS

Here we go ladies and gentlemen. Deep well location!

read article, then the permit unamended, but location correct.

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A deep well drilling program is planned for the fall of 2005 at location # 6. This well will be drilled to a depth of more than 10,000 feet.

A deep test will involve setting intermediate casing just above 8,000 ft before the formation pressures start to rise. From that point, a well can safely be drilled and completed to 10,000 feet. This would still provide the option to re-complete at a later time to a number of shallower pays that are anticipated to be present. The initial engineering is to assume a test located between 8,000 and 8,500 ft.

Most of the reserves are calculated above 6,700 feet. Additional reserves are anticipated between 6,700 feet and 8,500 feet. A reserve estimate report completed by Ralph E. Davis and Associates, Houston Texas has valued the ``behind pipe`` reserves for 100% of the Mission River property at US$190,000,000.*

The chief geologist for the operator, Mr. Wes Franklin, has indicated, based on previously drilled deep producers on the property, that a successful deep test could produce 5 million cubic feet of natural gas a day, generating revenues to the Company that could more than double present production revenue. The success of the first deep test could lead to follow-up drill program of additional deep tests on the property

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THE AMENDED PERMIT SHOULD BE FORTHCOMING~

Scanio/Shelton Well No. 6

Location 1.8 miles south of Refugio, Texas

District: 2 County: REFUGIO Date: 7/12/2004 Report: 1

Type: DRILL 42-391-32607

Operator: HIGH PLAINS GAS SYSTEMS

Address: P. O. BOX 56769

City, State: Houston, TX Zip Code:

Lease: SCANIO/SHELTON Well: 6

Size: 620 acre unit Depth: 6800`

Location: Refugio Town Tract Survey, A-345

Test Data: 798` from SE line and 958` from NW line of lease.

Well Calls: 5698` from S line and 12,882` from E line of survey.

Well Type: Oil & Gas Well

Direction: 1.8 miles S of Refugio Field/Zone: Wildcat

Latitude: 28.27027778 Longitude: -97.27583333

Signature: J. B. Beckley, Agent

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