Since the late-1920s Texas has been the largest producer of oil and gas reserves in the United States. Within Texas, the Gulf Coast region has had a long history of prolific production, with some 133 published reservoirs. According to a special report published by the Oil and Gas Journal (April 19, 2004) exploration and development within the domestic industry will focus on the production of gas resources in the foreseeable future.
The target formations of the 3rd Coast drilling program are the Miocene and Frio Sands on the Gulf Coast. For many years exploration in the area was solely dependent upon the use of 2-D seismic with limited success. The development, successful use and continuing refinement of 3-D seismic technologies have resulted in an increased ratio of successfully drilled wells.
It is our belief that given the relatively low-risk nature of drilling prospects utilizing 3-D seismic, the promising future of oil and gas prices for the foreseeable future, the 3rd Coast Prospect represents an excellent investment opportunity for our partners.