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
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