Antrim Energy Inc. ATGYF

RE: Another Sesmic Tool. B.B. Oil

[Bigbadoil]

In the past they used to put fields on water flood later on in their life. Now they do it right away. As these are relatively small compartments, it will not take long for the producers to "feel" the edge of the pool and decrease pressure in the pool. Best to start injecting as early as possible to maintain voidage "Oil out=water in", and maintain the reservoir pressure. If they place a well downdip and inject underneath the oil column, it will drive the lower density oil updip and laterally towards the producer. Oil will flow from the "higher pressure" injector towards the "lower pressure" producer, (thats the theory anyway!) Thats ok for homogeneous reservoir but when you have permeability breaks, then you have to be careful about well placement. Your injection well may not be in communication with your producer. In the central block, obviously from pressure data, 3D seismic, logging etc, AEN feels they need another producer in the N. part of the central block because they need to drain the Tarbutt. They cannot drainit from the 22a-6 well because it was wet and they did not complete that zone. Bigbadun'