Description

Location.
The total TM Squared acreage position comprises 935 acres in portions of Section 122 WE Pritchard Survey in Coleman Co. and portions of Sections 121 ETRR Survey and 130 WE Pritchard Survey in Runnels Co. The lease is located 4 miles north of Talpa.

General Geology
The lease is situated on the Eastern Shelf of the Permian Basin. Production in the area is from Lower Permian and Pennsylvanian reservoirs. Trapping is primarily stratigraphically controlled with some structural influence in the form of nosings and possibly small closures. Regional dip is to the west.

Lower Permian and Pennsylvanian aged reservoirs, productive in the area include the Serratt Sand, King Sand, Palo Pinto Lime, Dog Bend Lime, Upper and Lower Fry Sands, Jennings Sand and the Gardner Sand.

The ensuing section will outline the recompletion potential of the TM Squared Ellis #1. Following this, the potential for drilling additional wells on the 935 acre lease will be discussed.

Ellis #1

The Ellis #1 was originally drilled and completed by Valley Petroleum Company in 2015. It was completed initially in the Gardner Sand from 3572-76’ and fraced with 80 sxs of sand. It initially produced between 40-60 BOPD but declined to 3-4 BOPD.

When the well declined a bridge plug was set and the Dog Bend and Lower Fry Sand were both perforated. As will be discussed in ensuing sections, both zones have potential but were not adequately treated and need to be recompleted and re-stimulated in order to produce economically.

Subsequently the Gardner Sand was returned to production and TM Squared added perforations in the lower portion of the Gardner Sand at 3578-84’ and fraced with 200 sxs. Present production is averaging 5 BOPD and 20 MCFGD. Cumulative production through November 2016 is 2,063 BO and 6,484 MCFG.

The Gardner Sand possesses porosity of 14% in the upper portion with good microlog separation and 7-9% porosity with fair microlog separation in the lower section. Log analysis by Schlumberger indicated 35% SW for the upper portion of the Gardner Sand and further analysis of the lower section indicates an SW of 49% (See Table).

Comparison of this data with the New Horizon Rhone #4 located the SW in Section 120 (467’ FS&EL), which produced 8,562 BO and 66,847 MCFG from 12% porosity and poor to fair microlog separation, indicates additional reserves for the Gardner in the Ellis well at 10,000 BO and 100,000 MCFG as the Ellis #1 Gardner Sand possesses better reservoir quality (For justification see logs provided).

Posted Jul 18, 2016

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