Environmental BioTechnologies, Inc.

Large Block Survey - Border Area

T1-2 R12-14 W3

Introduction

Portions of 6 adjoining townships were surveyed using EBT’s proprietary microbial geochemical exploration technology during the summer of 1998 (see map of survey location). From this general survey, EBT had identified selected areas of interest in the surveyed block. It was thus interesting to us when, independent of our survey results, a company elected to drill for shallow gas in one of the highlighted areas within this survey (see map). Drilling occurred at the end of 1998 and wells were being tested and completed at the time of this review.

Drilling Activity

A total of 13 wells were drilled in the highlighted area in T1 R14 W3 as shown in the enlarged map of the area of interest. This is a very focused drilling program since only around a dozen other wells had been drilled in 4.5 township area surveyed by EBT. Some of EBT’s survey results are shown in a 12 section block where most of the drilling occurred. A careful review of the MET data in comparison to the drill site location is quite interesting. You will note that most of these wells are positioned very close to, if not directly in areas of high MET signal strength. The % Probability of Success Map indicates that the majority of these wells should be producers. EBT has ranked these wells and our recommendations are listed in the following table. Based on the MET survey results, EBT recommends drilling 6 of these sites. These are the best sites based on our survey data yet we expect that other sites will be completed even though they are not recommended by EBT.

Summary

The drill sites were not selected as a result of EBT’s MET survey. It is therefore very interesting that the oil and gas company selected sites that so closely correlated with the MET survey for this area. We are awaiting the results of the completion of these gas. In previously reviewed MET surveys, we have followed cumulative oil production from recommended and non recommended wells and in the analysis of three different fields, found that EBT recommended wells averaged 29%, 70% and 260% higher production than production from non recommended wells that were completed. The cost of these MET surveys, at $27,500 per township, are economical to conduct and lead to not just the general areas of interest within a surveyed area, but, as demonstrated in this case, can be supportive of drill site selection. It is not likely that the drilling company was able to identify this acreage and select drill sites at a cost of $1.50 per acre, or $US 10,000 for the 12 section area of interest. MET surveys can therefore bring great savings as well as high drilling success rates to programs using this technology.

Table 1. Ranking and Recommendations for Well Site Postings

Lsd Sec T R W %PS Recommendation Results
6 8 1 14 3 74 Recommended unknown
10 7 1 14 3 71 Recommended Pot gas
9 6 1 14 3 69 Recommended Unknown/
suspended oil?
10 8 1 14 3 65 Recommended unknown
7 18 1 14 3 63 Recommended D&A
were they looking for oil?
10 20 10 14 3 58 Recommended unknown
4 6 1 14 3 56 Recommended unknown
6 7 1 14 3 53 Recommended unknown
10 5 1 14 3 53 Recommended unknown
10 30 1 14 3 47 Not recommended D&A
6 15 1 14 3 46 Recommended unknown
4 5 1 14 3 46 Not recommended unknown
10 10 1 14 3 42 Not recommended unknown
10 11 1 14 3 39 Not recommended unknown
4 16 1 14 3 38 Not recommended unknown
10 17 1 14 3 37 Not recommended unknown
4 4 1 14 3 34 Not recommended Abandoned oil
4 1 1 14 3 29 Not recommended unknown
6 10 1 14 3 28 Not recommended unknown
6 11 1 14 3 22 Not recommended unknown
13 16 1 14 3 21 Not recommended D&A
10 9 1 14 3 19 Not recommended Abandoned oil
6 9 1 14 3 16 Not recommended unknown
3 3 1 14 3 12 Not recommended Abandoned oil
16 2 1 14 3 11 Not recommended unknown
4 2 1 14 3 9 Not recommended Abandoned oil
4 6 1 13 3 5 Not recommended unknown
10 3 1 13 3 Not surveyed unknown

Note: We have been following the drilling activities at the locations listed in the above table. EBT has conducted a microbial surface geochemical survey over this area and we have developed our recommendation for these sites. These considerations are based on how our MET surveys have correlated to over 640 wells drilled in our 3 million acres of MET surveys. We first obtain a Percent Probability of Success (%PS) for a site based on four sample points in the lsd. We then look to see if the drill site is within an area with sufficient areal extent of hydrocarbon potential and if it is a development or exploratory well (D/E). Wells that we have recommended have been completed 77% of the time. We expect that some of the non recommended wells will be completed. Our selection criteria is to recommend wells with the highest opportunity for drilling success.

 

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Environmental BioTechnologies, Inc.
255C S. Guild Ave.
Lodi, CA 95240
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