Mississippi:
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Wilkinson County, bordering Louisiana to the south and immediately adjacent to the Mississippi River to the west. Palmetto Point is approximately 150 miles southwest of Jackson, Mississippi and approximately 50 miles north/northwest of Baton Rouge, Louisiana. Project Details Palmetto Point Palmetto Point is a 50-square mile (32,000 acres) 3-D seismic area that has generated a prolific number of shallow Frio targets. At this time many valid drilling targets remain. Our important Belmont Lake oil discovery – which is itself less than 320 acres - is located within this Palmetto Point area. Lexaria has a 32% working interest in the original 2006 program located at Palmetto Point, Mississippi. The prospect wells all targeted the Frio Geological formation. Frio wells typically enjoy low finding costs and have a high degree of success. The natural gas and oil targets occur at shallower depths, and have low completion costs. Drilling of the original ten wells commenced in May 2006 (2 other previously drilled wells were subsequently added to our interest) and all those 12 wells have now been drilled. In total, 10 wells encountered some natural gas and 3 of those wells also encountered some oil.
Tecumseh, Red Bug, Macedonia, Buffalo River Tecumseh, Red Bug, Macedonia, Buffalo River are additional plots of land in Mississippi in which Lexaria has 45%-50% working interests in another 12 wells that we drilled between September 2006 and November 2007. These 12 wells were located on these other lands that together with Palmetto Point, form part of the 50-well Area of Mutual Interest (AMI) wherein Lexaria and the other participants have an exclusive option from the top of the Frio formation to the bottom of the Wilcox formation, over more than a 150,000 acre area. Tecumseh is 20,800 acres; Red Bug is 11,840 acres; Macedonia is 37,120 acres; and Buffalo River is 32,000 acres.
Lexaria has a 60% working interest in the balance of the Mississippi AMI, which, as of Fall 2010 has 38 wells remaining to be drilled. With depressed natural gas prices there has been less incentive to drill shallow gas wells. Our exploration focus has centered on the idea of attempting to discover additional Frio oil discoveries that might resemble our earlier Belmont Lake discovery. If successful we believe we can add significant shareholder value since there are a number of historic oil fields in our general area each in excess of 500,000 barrels or more, and in some cases significantly more. Drilling operations are conducted by Griffin & Griffin Exploration in its capacity as Operator. This consists of the drilling, logging, testing, completing and equipping for production (or if applicable, the plugging and abandonment) of the wells. Griffin anticipates drilling to a subsurface depth equal to such depth as is necessary to penetrate the sands of the Frio Formation identified as potentially productive of oil and/or gas. Griffin has drilled, owned or operated more than 100 Frio wells in the region. View FF-36 well log results chart View surface scan of FF-36 well showing "bright spot" technology |
