About the project
Presidio Oil Project (onshore Texas, USA)
Helios is an oil and gas company focussed solely on Texas, USA and its major focus is the Presidio Oil Project located in Presidio County in Texas, USA. Helios has drilled 2 vertical wildcat wells into the Presidio Oil Project: Quinn Creek 141 and Quinn Mesa 113 (2 miles apart).
Helios has made a new oil discovery in the Ojinaga Shale Formation in the Presidio Oil Project. In June 2018, Helios successfully completed a one stage frack in the Quinn Creek 141 well to test the lower Ojinaga Formation (at 4,800 feet depth). The well flowed 260 barrels of oil and 1,345 barrels of completion fluid in 168 hours. The oil produced is good quality, mature, 39 degrees API gravity light oil similar in composition to Eagle Ford Shale oils. Gas was also produced at 456 mcf per day on a 34/64ths of one inch choke. The observations to date evidence a new oil discovery. There has been very encouraging oil and gas production from a single stage frack.
New Oil Discovery - Ojinaga Formation
Typical fracked horizontal wells in west Texas have lateral lengths of between 5,000 feet (25 fracked stages) and 10,000 feet (50 fracked stages) and with each stage having a typical horizontal length of 200 feet. The logs indicate that the lower interval of the Ojinaga Formation in the Quinn Creek 141 well is highly naturally fractured. The lower bench of the Ojinaga Formation is approximately 330 feet thick with uniform rock characteristics. It is predominantly black shale with micro laminations of siltstone and fine carbonates. The lower bench of the Ojinaga Formation shows well on both 2D & 3D seismic and is easily mapped. A fracked horizontal well of 7,000 feet in length (35 stages) would cost US$7m. The frack of the lower bench of the Ojinaga Formation in the Quinn Creek 141 well successfully injected 200,000 pounds of proppant (approximately 1,500 pounds of proppant per foot) and was deployed easily and without complications. At 1,500 pounds of proppant per foot this frack can be considered a “light frack”. Leading oil players in the Permian Basin in west Texas are commonly injecting 3,000 pounds of proppant per foot. Generally speaking, the greater the amount of proppant injected per foot (all other factors remaining equal) the higher the levels of 30 day initial oil production (30 Day IP) and estimated ultimate recovery (EUR) of oil. The lower bench of the Ojinaga Shale Formation in the Quinn Creek 141 well has porosity predominately ranging between 4% to 12.5% and permeability up to 0.75 µd (micro darcys). Analysis of the Quinn Creek 141 well and surrounding historical wells clearly shows that these porosity and permeability characteristics in Presidio County in the Ojinaga Shale Formation exceed the characteristics present in the Eagle Ford Shale in the Karnes Trough which is the premier sweet spot of the Eagle Ford Shale play.
LOCATION OF PRESIDIO OIL PROJECT – PRESIDIO COUNTY, TEXAS, USA
PRESIDIO COUNTY, TEXAS, USA
Excellent Infrastructure - West Texas, USA
Access to the Quinn Mesa 113 and the Quinn Creek 141 well locations is provided by a 25 mile unsealed, formed road constructed by Helios that branches off the sealed US-90 highway which carries heavy truck and passenger vehicle traffic. The Quinn Mesa 113 and the Quinn Creek 141 well locations have access to ample supplies of fresh water provided by local water wells drilled into shallow water aquifers. The El Paso Oil Refinery located in El Paso, Texas has a processing capacity of 135,000 barrels of oil per day and is located 170 miles from the Presidio Oil Project. Crude oil is sold there by truck delivery. The Presidio Oil Project is located 250 miles (or 5 hours by truck) from Midland, Texas which is the epicenter of the Permian Basin oil industry. All rigs, supplies and services required for the Presidio Oil Project are sourced from Midland, Texas. Oil production in the Permian Basin is nearing 3,200,000 bopd.
PERMIAN BASIN – SUPPLY SOURCE
LARGE LEASE HOLDING
66,776 Gross Acres
Helios has been actively leasing in the Presidio Oil Project area. Excluding the initial 6,400 acres (4,480 net acres) of the Presidio Oil Project in which Helios will earn a 70% WI upon completing the drilling of 3 wells, Helios has been actively leasing additional acres in close proximity to these initial 6,400 acres and now has a 70% WI in a further 26,096 acres. In addition, Helios has a 70% WI in a further 34,280 acres which have been placed under call option to lease. In total therefore, Helios has under contract a 70% WI in a total of 66,776 acres (46,743 net acres). The Ojinaga Formation play area is considered by Helios to 200,000 acres in size.
QUINN CREEK 141 WELL – FRACK JOB
QUINN CREEK 141 WELL