Opportunity Overview

Basin Geology

Historical production in the area has been from the Olmos formation, one of three upper Cretaceous terrigenous elastic wedges deposited in the Maverick Basin of south Texas. Each wedge gradually thickens to the south.

These shallow producing sands range from 1,400 – 1,800 feet in depth allowing for very economical workovers.

The Navarro-Taylor Group – A New Resource to Pursue

The Navarro-Taylor group in South Texas is comprised of Cretaceous aged nearshore Tidal Flat deposits. In the Somerset area the Navarro-Taylor contains multiple zones with up to 120 feet thick. The Navarro-Taylor is very extensive, covering all of the Somerset lands.

Note: competent rock sits above and below the Navarro-Taylor sands, which allows for solid and stable fracture stimulation.

Regional Resource potential

  • Historic logs indicate the presence of an unconventional tight oil zone tested up to 24 b/d unstimulated from several different wellbores
  • Somerset completed three vertical fracs in 2021 which confirmed the viability of this zone; each well producing up to 15 bopd
  • Up to 120’ thick and has similar properties to prolific resource plays in Canada
  • ~100 mapped targets for horizontal fracs that could produce up to 200 bopd (350 bopd IP) producing an aggregate of 20,000 bopd

Known technology and expertise

Analogous Assets

Analogs between well understood Canadian basins and Texas assets:

  1. The Navarro-Taylor unconventional zones is a cleaner but shallower version of the Montney with better permeability and porosity (lower pressure)
  2. The Olmos and Kyote are shallower versions of the Viking (very analogous)
Leveraging Expertise
  • Derek Stonehouse (Chief Geoscientist) made early discoveries in the Montney (now owned and operated by Storm)
  • Toby Pierce (CEO) & Suneel Gupta (Director) both have extensive Western Canadian & US experience (Permian Basin)
Directly Applicable Knowledge
  • The ability to use Montney and Viking completion technology adds value
  • Completions technology: using mechanical cleanouts alongside chemical treatments has demonstrated the ability to rehabilitate old wells and increase production by up to 10-times.
  • Proven fluid technology for cleanouts and drastically improved production

Technical Advancements Through Chemistry

Using new chemical products, production and recovery from not only existing oil fields can be improved, but also those fields that were uneconomic in the past due to technological hurdles. These new compounds are formulated to be injected downhole into oil bearing formations for the increased recovery of hydrocarbons and improved flow characteristics. The unique multi-modal characteristics interacts with the attached hydrocarbons on formation surfaces by destabilizing the weak hydrogen bonding which causes the hydrocarbons to be released from the oil-bearing formation. This results in an increased surface water wetting and reduction of surface tension allowing the oil to be recovered with higher efficiency.