Projects

State A Lease

The State A Lease by a third party estimate is believed to have 2,200,000 barrels of original oil in place. The lease has delivered 15% or 335,000 barrels of primary oil production in the early1980s, before low oil prices forced the original operator out of business. The field plan is to complete primary production and, with secondary water flood and pressure injection methods, recover another 15% or 335,000 barrels of additional oil reserve in place.

Most good oil reservoirs are less than 8,000" in depth, which requires less costly equipment to maintain and operate.

The State A Lease comprises of 104.75 acres 9 miles south of Interstate 20 on Highway 206 in Cisco, Texas. The primary formation is the cross-cut encountered at 1400 feet. The cross-cut formation averages 50 feet in thickness on the State A Lease. The original wells flowed nearly 500 BBL. per day. Ten new wells and 2 disposal wells have been drilled to the cross-cut structure. Three wells have had submersible pumps installed that are producing 300 BBL. of fluid per day with a 10% cut of oil resulting in 30 BBL. of oil production per day. A fourth well is producing 5 BBL. of oil per day with a standard pump jack, bringing field production to 35 BBL. per day on average. Cal North believes field production can reach 100+ BBL. of oil with installation of additional submersible pumps.



SHIP SHOAL 72 / Gulf of Mexico



Zinfandel - Producing about 1.2 MMCF per day with about 15 barrels of condensate.

Shiraz "A" - Producing about 400 barrels of oil per day with approximately 1.5 MMCF per day.

Shiraz "C" - Producing about 1.5 MMCF per day with approximately 1,000 barrels of oil per day.

CL&F # 17 "Turtle Bayou" / "English Turn" - Producing 20 MMCF of gas per day and 500 barrels of oil per day.




THE MONTROSE PROSPECT

The Montrose Prospect comprises nearly 6,800 net acres which spans a little over 10 square miles. The Montrose and Reese estate properties will be focal due to leases in hand as well as the quality of the well control (12 wells) on the properties, although the A.M.I. (area of mutual interest) is likely to expand over six full townships or 216 square miles. The prospect is structurally diverse giving way to opportunity of success at depths of 4,400 feet with the upper and lower Frio Natural gas sands as well as both oil and natural gas in the upper and lower Tuscaloosa formations at 12,500 feet. Both Frio and Tuscaloosa intervals run contiguous for several hundred miles. There is also potential in a fifth pay zone in the Wilcox formation which is being encountered more and more within the proposed A.M.I. All of the proposed drilling locations that the Montrose Energy Partners I, L.P. will participate and will be based on extensive 3-D and 4-D survey data to best exploit these various pay zones. The Frio sands studied from the Reese and Montrose well control show an average thickness of 15 to 30 feet in density. The Tuscaloosa formation can average between 50 to 100 feet in thickness. Geologists within the area have long believed both formations vein out on the primary leases the Montrose Energy Partners I, L.P. will participate on. Generally, a reserve estimate can be calculated by using the following formula: 50 feet of net pay x 160 acres (spacing as well as drainage) x 1000 M.C.F. per acre foot = 8,000,000 M.C.F. or 8 B.C.F. of natural gas alone. Our projections will be based on 6 B.C.F. recovered, 75% of total reserves in place. oil reserve from the Tuscaloosa formation within the primary leases have exceeded 300,000 B.B.I. recovered per well. At least 40 to 50 proposed drilling prospects are expected to result from the 3-D Bright Spot Technology. Cal North Petroleum, Inc., the Managing General Partner ("Cal North") (G.P.) plans to obtain first right of refusal on the first 10 locations that it believes has the best potential for oil and gas production. Cal North Petroleum, Inc. intends to conduct a due diligence process and participate on up to 5 wells, assigning a 20% working interest to Montrose Energy Partners I, L.P. on each of the 5 (five) wells Cal North participates. Cal North believes there are several factors ensuring the Montrose Energy partners I, L.P. potential success, a few being high oil and natural gas reserves, 3-D and 4-D seismic imaging, experienced and competent driller, and a very strong and bullish oil and natural gas market.

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