Environmental BioTechnologies, Inc.

Large Block Survey Analysis
Saskatchewan T1-2 R1-3 W3

6 townships, 120,960 acres, MET survey cost US $145,000

Introduction

Six adjoining (3x2) townships were surveyed using EBT's proprietary microbial geochemical exploration technology (MET). To determine how our MET survey correlates with drilling results, we have followed drilling results in these six townships. A total of 74 wells were used in this analysis, 28 of which were drilled post survey EBT derives a % Probability of Drilling Success for a given location through a proprietary method that is based on the correlation of MET survey results to drilling results of over 640 wells located in our 3.0 million acres of completed surveys. Based on a correlation obtained through this process, we are able to develop a % Probability of Drilling Success (% PS) contour map for a surveyed region as well as determine the %PS for a given lsd.

MET Survey Results Compared to Drilling Results

Using the % PS map, EBT determined a % PS rating for 74 wells drilled in these six townships. We then ranked these sites based on their %PS value (Table 1). For this area, EBT recommends sites that have a 44%PS or higher rating. If all wells rated at a 44% PS or greater were drilled, 12 of 19 would have been completed for a 63% success rate. For those wells with a 44 %PS or lower rating, only 5 of 55 would have been completed for a 9% success rate. Overall, industry completed 17 of 74 wells for a success rate of 23%. This data is presented in graphic form (see Relationship of %PS Ratings to Well Completion graph) where it can be easily seen that higher ranked sites are predominately completed wells. Post survey drilling results can be reviewed separately. On the map page, wells drilled after the MET survey are identified in magenta if correctly predicted and in blue if not correct. MET surveys correctly predicted 12 of 13 sites as producers and predicted six dry holes correctly. It did not recommend 6 sites that are listed as producers. While missing some potential oil wells, EBT's MET surveys was 92% correct for identifying producers and would have saved drilling 6 dry wells.

Correlation of MET Recommended Wells and Oil Production

EBT has made an estimate of how oil production from our recommended well compares to the production of wells drilled at MET, non recommended sites. The comparison indicates wells recommended by EBT’s MET survey had a 70% higher average production than wells not recommended. The recommended wells have averaged to date, 34 BOPD while non recommended wells averaged 20 BOPD. Total production for recommended wells was 239,534 BO while non recommended wells had 36,590 BO of production. So, by completing 12 recommended wells of the 17 wells completed, 87% of the oil would have been produced. It is not likely, on average, that the remaining 5 non recommended but completed wells will prove economical. See Table 1 for specifics on completion date and production history. Please also note that this is a estimate since not all wells may have been on production as long as we believe, or their production report up to date.


Survey Benefits

The significance a MET survey can have on the financial outcome of an exploration program is identified in the cost benefit analysis page. This chart indicates that the industry's estimated cost of finding oil in this area was $705,000 per producing well. Costs for finding productive wells based on MET survey technology was $298,000, a reduction in finding costs of 58%. The full cost of surveying these 120,000 acres was $145,000.

The benefits of conducting a MET survey over large blocks of land can be summarized as follows:

  1. Rapid process, 6 townships could be surveyed in 2 weeks and project results available 2 weeks later.
  2. Economical process, costs are less than $US 1.00 per acre.
  3. Reports support regional view as well as define high potential areas.
  4. Tremendous positive impact on your drilling success rate and cost for finding oil or gas.

 

 

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