About the project
The Trinity Oil Project is situated at the intersection of Trinity, Houston and Walker counties in Texas, USA and is comprised of 3,128 net acres of oil and gas leases.
The oil plays contained within the Trinity Leases which have attracted the Company are contained within the thick, organically rich section located below the Austin Chalk formation all the way down to the Glen Rose formation. This overall “Eaglebine/BudaRose” section contains both conventional and unconventional oil reservoirs. However, the vast majority of the targeted sections should be classified as unconventional tight oil reservoirs.
One potential development option for the Company would be via drilling vertical wells and then comingling all zones in a single completion post fracking. This drilling could be undertaken by the Company or by a farminee brought into the Trinity Oil Project by the Company.
Another potential development option for the Company would be via drilling fracked horizontal wells into the Lower Woodbine interval. This drilling could also be undertaken by the Company or by a farminee brought into the Trinity Oil Project by the Company.
The Trinity Oil Project is located in an area which has seen recent oil exploration and production activity in the Woodbine, Eagle Ford, Buda and Glen Rose formations (“Eaglebine” and “BudaRose”).
The Trinity Oil Project is located about 100 miles north-east of Houston, Texas and can be considered as a north-eastward extension of the very well documented South Texas Eagle Ford trend.
There is established oil and gas production from wells nearby the Trinity Oil Project and the target section has proven to be prolific in the immediate area with cumulative production of approximately 9,000,000 barrels of oil (bo) and 39 billion cubic feet of gas.
This nearby production has resulted from drilling vertical wells and then comingling all zones in a single completion post fracking. Drilling is conducted on 160 acre spacing and type curves of these nearby analogous wells have average initial production of 500 barrels of oil per day (bopd) with an average well producing a total of 250,000 bo. The Trinity Oil Project is comprised of 3,128 net acres which would, subject to successfully drilling, require 20 vertical oil wells to develop. The target for recovered oil would therefore be a total of 5,000,000 bo (based on a 100% working interest).
These nearby analogous vertical fracked wells are being drilled and completed for a total capital cost of US$3,500,000 and operating costs are US$6,000 per well per month.