Res A

Performed By

Gemini Solutions, Inc.

May 2001

Res A

Tasks:

Create full field model History match recorded production and pressures Predict future production for current well

Res A Area Modeled

Res A 37Top of Structure - Section Modeled

Res A 37Gross Sand Thickness and Model Grid – aquifer excluded

Ternary Diagram - gas and water8 Layer Model

History Match

History Match

Assumptions:

Infinite high permeability aquifer down dip

Original oil in place adjusted up to 11.1 MMBO

Original Free Gas in Place = 12 BCF

Adjusted oil zone porosity from 30% to 35%

Vertical Fluid MovementTime Across and Cross Section Down – X direction, on strike

Vertical Fluid Movement

Downdip to Updip – Y direction

Vertical Fluid MovementThrough producing well – X direction, on strike

Vertical Fluid MovementThrough Producing Well – Updip to Downdip

Contour Map Layer 1 – Gas CapOil movement into gas cap

Contour Map Layer 2 – Gas CapOil movement into gas cap

Contour Map Layer 3 – Oil ZoneWater movement into oil zone

Contour Map Layer 4 – Oil ZoneWater movement into oil zone

Contour Map Layer 5 – Oil ZoneWater movement into oil zone

Contour Map Layer 6 – Oil ZoneWater movement into oil zone

Contour Map Layer 7 – Oil ZoneWater movement into oil zone

Res A 37 Predictive Run Remaining oil reserves:

700 MMBO for 1000 psi flowing bottom hole abandonment

Res A 37 – Yearly Production

Res A 37 Conclusions

700 MMBO reserves 1000 psi flowing bottom hole abandonment

39% ultimate oil recovery factor with current well

Bypassed reserves may exist • significant oil volume may have moved to the gas cap

Quick study possible• < 2 man days

Res A 37

Recommendations:

Improve water/gas history match further

Explore additional wells to recover bypassed oil in gas cap

Explore possibility that oil in place is higher ( especially in southwest quadrant ) history match would still be possible gas and water match could be improved further new drilling location may be possible