EnDevCo, Inc., the Energy Development Company, announced that the highly regarded petroleum consulting firm, DeGolyer and McNaughton (D&M), recently completed their proved reserves assessment for the Company’s Short Junction Field (the Field) located in Cleveland County, Oklahoma. Historically the primary zone of interest for oil production in the Field has been the Hunton limestone formation. However, above the Hunton, the Bartlesville, Prue, Red Fork and Skinner sandstones along with the Pink Lime zones are present and appear to be productive on existing well logs.
The D&M proved reserves evaluation for the Field (all zones) as of December 31, 2006 is 27,281,645 barrels of oil equivalent (BOE).
It is important to note that the Hunton formation is divided into the following four members: Bois d’Arc, Haragan, Henry House and Chimney Hill reservoirs. The D&M report focused primarily on the Bois d’Arc formation estimating reserves for 73 proved undeveloped (PUD) locations projected to produce an average of 164,400 barrels of oil (BO) and 486,000 thousand cubic feet (MCF) of gas per location. D&M estimated only 7 PUD locations for the Haragan/Henry
House and 14 PUD locations for the Chimney Hill reservoirs. The Haragan/Henry House locations are projected to produce 164,000 BO and 312,000 MCF of gas, while the thicker Chimney Hill zone locations are projected to produce an average of 192,000 BO and 453,000 MCF of gas per location.
Since SEC reserve guidelines only allow for a single undeveloped location away from proved production, D&M was unable to estimate proved reserves for an additional 66 locations in the Haragan/Henry House and 59 locations in the Chimney Hill. However, once additional drilling is performed in the Field penetrating, logging and producing those zones, D&M will be able to estimate proved reserves for those locations. EnDevCo estimates that an additional 22,178,400 BO and 47,319,000 MCF of gas will eventually be added to the Field’s gross proved reserves to increase the Field’s total gross proved reserves to 57,346,545 BOE.
