GTN Energy Partners LLC
An Independent Oil Company
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Schenkel Lease

 

The 667.39 -  acre Schenkel shallow viscous oil  project is situated in the northeast portion of the Val Verde Basin in Southwest Texas, approximately 25 miles south of Sonora, Texas. It is part of the highly productive Midland Basin where the oil is sourced from the Bone Springs section of the Permian Shale. The lease is on relatively flat land topography and readily accessible on well- maintained roads. GTN's current plan is to produce oil from two shallow sand deposit reservoirs above the shale, although the potential exists to further develop the deeper shale in the future. The sand reservoir's geology is exceptionally homogeneous and has the perfect characteristics of porosity and permeability for the type of viscous oil produced from the inexpensive water flooding method of production. The project, which is operated by the highly reputable Mortimer Production Company and an experienced management team, has been successfully utilizing water flooding to produce oil from shallow sand deposits.

GTN  has been operating three  producing wells in the C zone sands with very low  drilling and operations costs. In fact, production costs using modern technologies are significantly less than the commonly used thermal recovery processes. Shallow drilling at an average depth of 420 feet in the pay zones of the Paluxy sands of the Glen Rose formation at Schenkel (with the same characteristics as the Paluxy sand at Massie West Ranch) further diminishes the cost of well completion.

There are several oil wells and multi-million barrel oil fields in all directions from the Schenkel property, including the Holman Field, the most prolific shallow field in the Play located 4 miles north of our lease and the Wardlaw lease. These oil fields in the Play are either offset to Schenkel, or in close proximity and all are located in the Paluxy sand formation.

Besides potential for fracking in the Bone Spring source rock (which has not yet been researched or documented), the 2 pay zones are in the A and C sand zones above the Bone Springs. The A sands are 5 feet in thickness and have 5,354,625 BBL 's of potential reserves as assessed by GTN geologist. The C sands are 14 feet in thickness and have 14,992,950 BBL's  estimated reserves, as certified by the TEC Reserve Engineering Group in Tyler, Texas.