South Gladiola Prospect
Lea County, New Mexico

New South Gladiola Prospect Feature Image

Prospect Summary

  • Upon execution of a Participation Agreement, Participant will pay its proportionate share of the sum of Four Hundred Forty-Nine Thousand and no/100 Dollars ($449,000.00) for land and seismic costs and Fifty Thousand and no/100 Dollars ($50,000.00) for G&G cost for a total of Four Hundred Ninety-Nine Thousand and no.100 Dollars ($499,000.00). This sum includes costs to date for acreage acquisition, Drilling Title Opinion and title curative, and hearings at the New Mexico Oil Conservation Division.
  • Participant will pay third for a quarter on all costs described above and drilling costs to casing point on the first well.
  • The leases will be assigned to Participant at a seventy-five percent (75%) net revenue.
  • Operator will be Sojourner Drilling Corporation and will operate under an AAPL 1989 Form Operating Agreement.

This prospect is subject to prior sale and/or withdrawal without notice.

New South Gladiola Prospect Stratigraphic Cross Section

Geology

12,250’ Proposed TD

The South Gladiola prospect is a multi-pay prospect targeting the Siluro-Devonian, the Atoka sands, and the Wolfcamp Carbonate. The primary target, the karsted Siluro-Devonian has been a very prolific oil producer in the area with several wells potentialing at over 700 BOPD and cumulatives of over 1 million barrels of oil per well. The Gladiola South prospect is located in sections 1 and 2 of T13S R37E, approximately 1.5 miles south of the Southwest Gladiola field which has produced 4.2 MMBOe from the Devonian(9 wells), 477 MBOE from the Atoka Sand(5 wells) and 1.58 MMBOE from the Wolcamp carbonate(6 wells).

New South Gladiola Prospect Locations

Siluro-Devonian
The Siluro-Devonian is unconformably overlain by the Woodford Shale and is comprised of highly leached and karsted dolomite. Porosity and permeability are encountered on and off structure in the area, with the onstructure wells drill stem testing very large volumes of oil and off structure wells drill stem testing very large volumes of water. The prospect is seismic identified; four way trap on the top of the Siluro-Devonian with 60 feet of structural closure. It is important to note that every structure lying within this seismic interpreted area that has been drilled (albeit drilled before the shooting of the seismic), has been a prolific oil producer from the Siluro-Devonian.

New South Gladiola Prospect Acreage

Although the prospect is 70 acres, it is a very similar size and relief as the Stallion field, which has produced over 730 MBOE from 2 wells (90% form the higher well). Because of its proximity to Stallion field and structural/size similarity, we are projecting the Southwest Gladiola prospect to produce 500,000- 700,000 BOE from the Siluro Devonian.

Atoka Sand

The Atoka sand produces on the Southwest Gladiola structure and made 477 MBOE. This sand is seen in an offset well and should be productive on the prospect structure with reserves estimated at 100 MBOE.

New South Gladiola Prospect Costs Summary

Wolfcamp Carbonate

The Wolfcamp carbonate produces from dolomitized “patch reefs” of the Lower Wolfcamp on structure in the area with the Southwest Gladiola Field Wolfcamp producing 1.58 MMBOE. The Wolfcamp should be productive on the prospect structure with reserves estimated at 125 MBOE.

New South Gladiola Prospect Structural Cross Section

Subject to Prior Sale

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For Project Details contact:

H & S Producing, Inc. /
Atoka Operating, Inc.
Office (972) 407-0058
E‐mail sgh@hspi.net

Mid-Continent Geological, Inc.
Jerry S. Stokes
Office (817) 236-2877
Cell (817) 925-5436
E-mail jerrystokes@midcongeo.com