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This oil reserve consists of 7,325 Acres located in northeast Maverick County, Texas. Previously drilled test wells indicated the presence of heavy oil in the San Miguel formation. The area of south central has had an ongoing development and production of this same heavy oil for many years with significant recoveries in excess of 30% and as high as 50%. Well logs provide the bed thickness to be in excess of 70’.
Currently, there are wells near offset being drilled and developed using the cluster of 5 procedure. Calculated recoverable reserves are 174,396,199 Bbls of oil at 30% recovery. Calculated value is now placed at $7,847,000,000 using a net $45.00 per Bbls of oil. Newer enhanced methods of recovery, currently used in Canada, should increase the recoveries making them closer to 348,792,398 Bbls of oil and a value of $15,695,000,000.
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