The company expects that the multiple Frio sands identified in the seismic profile could contain significant gas and condensate reserves and proposes to drill one to two wells to test the Frio zones.
Jeremy Driver, president and CEO of Strategic American Oil, said: “This leasing effort is a major development in the company’s ongoing exploration and development program. We have been working on this project for some time aided by the 3D seismic survey purchased last year.
“We believe this structure, in the prolific South Texas Frio Sand trend, has the potential to be a significant gas and condensate producer. Successfully developing prospects of this magnitude increases our ability to grow our revenue and core reserves. The company will continue to review and evaluate its four additional 3D seismic databases with the goal of developing additional prospects.”
The Frio formation, a sandstone interval, is said to be a prolific producer in South Texas. The company’s prospect lies directly on trend with other major gas/condensate producing fields, many of them accumulating production exceeding 200BCF and 300MBO.
In general, these fields possess faults creating fractured pools of gas and oil. A desirable general characteristic of Frio zones is relatively higher permeability and porosity leading to higher flow rates. Additionally, with the multiple zones to be encountered, the company expects to achieve these higher flow rates and significant oil and gas reserves.
Strategic American Oil is an exploration and development company with operations in Texas, Louisiana, and Illinois.
