LGX Oil + Gas Inc ROAOF

RE: Re OILANDGAS

[OILANDGAS]

"As predicted, the Oilexco 15/26b-6 well encountered a thicker Forties sandstone section when compared to the original well. More importantly, oil-stained sand lenses in the base of the core from the Forties in the 15/25b-6 well that contained free oil, good fluorescence and hydrocarbon odor were situated lower than the alleged oil/water contact in the original 15/25b-3 well. A drillstem test of the Oilexco 15/25b-6 “Brenda” well yielded oil at an average rate of 2,980 barrels per day and an average gas rate of 600 Mcfd with a 458 psi flowing wellhead pressure on a 40/64 inch choke. No formation water was produced from this test although the base of the perforations was over 40 feet lower than the “oil/water contact” from the original well." There is no O/W contact in the in either the b-3 or b-6 wells based on afore mentioned statement. This statement is the basis for a stratigraphic trap because the perforations in the b-6 well was 40 feet lower than the alleged O/W contact in b-3 and the well was only 150 meters away from the original b-3 borehole. The b-8 and b-9y both perforated most of the pay within the borehole and no free water was produced suggesting, no O/W contact exists within these wells either. The only logical well that has an O/W contact in it is the 16/21a-18 which has 15' of pay over water (personal communication). "The first 'sidetrack' of the 15/25b-9 well, named 15/25b-9Z, confirmed that the 15/25b-9 well intersected a Paleocene Forties sandstone oil accumulation in the western area of Block 15/25b. The oil/water contact encountered by the 15/25b-9 well, located 1.0 kilometer southwest of the 15/25b-8 well, is at a different elevation from the oil/water contact to the east. This difference will be the subject of further study and drilling." This statement says that the b-9 and b-9z encountered a different O/W line than the wells to the east {b-3, b-6, 16/21a-18 and b-8, b-9y [these last two wells are potentially in the east pool based on their proximity to the other wells even though it is not stated in the AIF]} The fact that they could not get pressure information from the b-9 and b-9z well bores is a function of borehole conditions which can vary from location to location. Maybe they changed their mud properties on the b-9y well bore and the hole was more stable so that pressure information could be obtained. There is nothing sinister happening here so stop over analyising ever little bit of information especially if you do not have a oil and gas background. You seem to be getting a handle on most of the information by researching the different topics that appear in the NR's and this BB. Searching for oil and gas is a complex task that is full of surprises which can cause Art to "pinch himself" or if possible kick himself in the nuuts.