new taiton might surprise

New Taiton is a project that's easy to take a " ho-hum " attitude towards, because of the 25% working interest, and the lack of raz-ma-taz,,, but Garcitas Ranch was about the same, and now has the potential to be a large money earner for the company, with an additional 8 production wells planed..!!

There has previously proven to be a degree of " prediction value ", in looking at the success rates of surrounding wells in the same fairway, and adjacent to the AZZ.....joint venture leases..

New Taiton is of course in Wharton County, and the surrounding wells of interest are owned by two American companys,,,,,Coastal Oil & Gas,,,,,and ,,,,Trans Texas Gas Corp.....Some as close as 10 klm.

Trans Texas Gas Corp:-

Two old wells , 10,300 ft to 11,700 ft. :- One has been producing for more than 2 years and still produces 13mmcf/d...
One new well producing at 15mmcf/d

Coastal Oil & Gas :-

5 new wells deeper at approx 14,500 ft :- Producing at between 6 to 23 mmcf/d..
These wells encountered Wilcox sands at the old original level of 10,300 ft to 11,700 ft ,,, but also encountered 5 additional Wilcox pay sands at the 14,000 ft plus level..!

All of the above wells were " over pressured ",, just like New Taiton.
The over pressure level seems to kick in at around 10,000 ft,,, and increases progressively at a rate of .8 to .85 psi per foot of additional deepth.

A gas analyses indicates that gas from the upper and lower levels are similar in composition,, and contain traces of nitrogen,, and about 2.5% of CO2...
This composition tends to be a bit corrosive , and shorten the life of the wellbore,,, BUT the other companys seem to be managing this OK..

New Taiton is a fault play,, So they need to have the targeting correct.
This should'nt be a problem, as it has been described as a " robust trap, clearly defined by 3D seismic "..
At the 17,000 ft level, they should have encountered at least one upper and 3 lower zones.
With the lease at 1787 acres, if successful,,should sustain 5 wells all up..[ that's an opinion, NOT a fact ].

My prediction, is that they may produce from three zones,, one upper and at least 2 lower,, IF they get it right...!!!!

AND if they DO,,,, It may be surprisingly good ..!!