"In June 2001 Amadeus acquired a 50.5-60% working interest in an oil exploration project located at the Red Creek Prospect, Jefferson County, Southern Oklahoma, 20 miles north of the Texas/Oklahoma border. The project aimed at exposing the company to a relatively low risk, but high return, exploration play.
The prospect area is operated by Trio Engineering Inc.
The Red Creek area is lightly explored and lies immediately northwest of fields that have produced over 150 mmb since the 1920's in Jefferson County, Oklahoma, and immediately across the state line in Montague County, Texas.
An extensive 3D seismic survey was shot and interpreted late 2001 with highly encouraging results. A total of 45 structures were identified on the Red Creek Prospect.
Drilling commenced in June 2002 on the Seay Heir #1 well, with a successful outcome. A drill stem test confirmed the presence of oil at a depth of 3,276 feet through to 3,288 feet. Drilling of the second location on the Rash Barrett 24-1 followed in July 2002, with oil recovered in a drill stem test of the Hoxbar formation sands.
Following the success of the initial wells in the prospect a step-out well Rash Barrett A 24-1 well was successfully drilled in February 2003, with the target containing well-developed oil bearing reservior sands, equivalent to the zone producing in the first Rash Barrett well. A third well on the Rash Barrett lease was successfully completed in July 2003.
February 2004 drilling recommenced with 2 wells being drilled back to back - Rash Barrett A-3 and Rash Barrett A-4. On the 23 February 2004 Rash Barrett A-3 reached target depth encountering two significant pay zones. 22 feet of gross productive section was encountered, 16 feet of which are high porous oil-bearing sand from the Hoxbar # 2 sand. The Rash Barrett A-3 is the fourth successful completion in the immediate area and is expected to add an additional 80 barrels of oil per day to the three existing wells. Oil shows in the Hoxbar # 1 sand were also drillstem tested and yeilded clean oil, commerciality of this zone is to be established.
Rash Barrett A-4 also proved to be a successful well with target depth reached on the 27 February 2004 (Oklahoma time) with two pay zones encountered. Rash Barrett A-4 is the fifth successful well in the immediate Rash Barrett area and is expected to produce 60-80 bopd.
Although nothing is certain until all drilling is completed, pre-drill studies indicate that a conservative reserves base of 9 mmb oil for Amadeus' share is possible."
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