Start Scientific, Inc. (STSC) Purchases Option to Acquire 1,500 Acres of Leases in Southeast Texas
Start Scientific announces today that it has acquired an option to purchase 1,500 acres of leases northwest of the town of Palacios, Matagorda County, Texas. Collectively known as the Airport Lease, the acres of leases require tendering of $150,000 to the city of Palacios by February 5, 2015. The company is required to pay gross revenue royalties of 18.75% to the city of Palacios and 1.25% royalty to XXI Oil & Gas, LLC upon production in accordance with the lease. After making the payment, the company will have three years to get the Airport Lease into production.
The Airport Lease covers part of the Palacios Field which was discovered by Glen McCarthy in 1937. Numerous shallow wells have been drilled in this structure including 80 wells in the early 1940’s. This field is located on a complicated fault system which creates traps of hydrocarbons near the surface to 30000 feet or deeper. In 1984 Hunt Oil drilled Harold Hunt #1 well immediately west of the airport lease and found multiple pay zones from 4000 feet to 16000 feet. At 16000 feet they encountered deep over-pressured Frio Sand. The deepest sand was 165 feet thick contained gas and condensate. In an attempt to complete this sand the casing collapsed. Hunt was never able to complete the Frio zones because they were not prepared for bottom hole pressures of 16000 pounds. They came up the hole and completed the well at shallower levels, where they have produced 700,000 barrels of oil equivalent to date. We intend to drill a well offset to the Hunt well on the western part of the airport lease and complete the zones where Hunt has been producing. After we have established production to hold the lease, we plan to drill a 16000 foot well and complete the Frio sands. We know from experience that over-pressured sand can contain major gas and condensate products.
“Start Scientific intends to drill and test a well offsetting the Harold Hunt 1 which was drilled in 1984 and has produced 700,000 barrels of oil equivalent from zones above 12,000 feet at first to gain production,” stated Chief Executive Officer Norris R. Harris. “Deeper zones which are lost in the well need to be tested after production is established toretain the Airport Lease. The Hunt Well logged oil and gas below 16,000 feet where extremely high pressures indicate potential gas and condensate. We believe the strongest performance will come from these deeper zones now with modern drilling technology.”
For more information on Start Scientific, visit www.startscientificoil.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
Start Scientific announces today that it has acquired an option to purchase 1,500 acres of leases northwest of the town of Palacios, Matagorda County, Texas. Collectively known as the Airport Lease, the acres of leases require tendering of $150,000 to the city of Palacios by February 5, 2015. The company is required to pay gross revenue royalties of 18.75% to the city of Palacios and 1.25% royalty to XXI Oil & Gas, LLC upon production in accordance with the lease. After making the payment, the company will have three years to get the Airport Lease into production.
The Airport Lease covers part of the Palacios Field which was discovered by Glen McCarthy in 1937. Numerous shallow wells have been drilled in this structure including 80 wells in the early 1940’s. This field is located on a complicated fault system which creates traps of hydrocarbons near the surface to 30000 feet or deeper. In 1984 Hunt Oil drilled Harold Hunt #1 well immediately west of the airport lease and found multiple pay zones from 4000 feet to 16000 feet. At 16000 feet they encountered deep over-pressured Frio Sand. The deepest sand was 165 feet thick contained gas and condensate. In an attempt to complete this sand the casing collapsed. Hunt was never able to complete the Frio zones because they were not prepared for bottom hole pressures of 16000 pounds. They came up the hole and completed the well at shallower levels, where they have produced 700,000 barrels of oil equivalent to date. We intend to drill a well offset to the Hunt well on the western part of the airport lease and complete the zones where Hunt has been producing. After we have established production to hold the lease, we plan to drill a 16000 foot well and complete the Frio sands. We know from experience that over-pressured sand can contain major gas and condensate products.
“Start Scientific intends to drill and test a well offsetting the Harold Hunt 1 which was drilled in 1984 and has produced 700,000 barrels of oil equivalent from zones above 12,000 feet at first to gain production,” stated Chief Executive Officer Norris R. Harris. “Deeper zones which are lost in the well need to be tested after production is established toretain the Airport Lease. The Hunt Well logged oil and gas below 16,000 feet where extremely high pressures indicate potential gas and condensate. We believe the strongest performance will come from these deeper zones now with modern drilling technology.”
For more information on Start Scientific, visit www.startscientificoil.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
