Cont. from page 1, Wolverine Gas...

Throughout this area's geologic history, the Hingeline has marked a pronounced boundary between two different terrains. During Late Proterozoic to Devonian time, it marked the boundary between a very thick layer of sediments deposited in western Utah and a thin sequence in eastern Utah. Later, the Hingeline coincided with the eastern edge of a mountain belt that formed during the Sevier Orogeny, a mountain-building period that took place during Cretaceous to Tertiary time. Today it marks the general boundary between the Basin and Range and the Colorado Plateau physiographic provinces. Thrust faults and large anticlines that formed during the Sevier Orogeny provide the trapping mechanism for the Pineview oilfields.

Daniel Schelling, structural geologist and David Wavrek of International Petroleum Systems gave specifics at the SPE meeting. The seal is the middle Jurassic Arapian, a 5,500-ft mudstone with halite, gypsum and anhydrite layers. These layers are good reflectors, making seismic interpretation more difficult. The reservoir is the lower Jurassic Navaho, a 1,200-ft aeolian sandstone. They consider the source rock to be of Mississippian age whereas the previous paradigm was that it was the Permian Phosphoria. The trap is described as large scale fault bend fold.

The actual discovery was an early Christmas gift. On December 22, 2003 the operators hit the Navaho Sandstone at 5,800 ft instead of the anticipated 7,200 ft. By December 24 they had 500 ft of oil shows and had established the NAV1 reservoir with flow and correlation to the Rangely Weber Oil. The petrophysics of the discovery well are gross pay 487 ft, net pay 424 ft, average porosity 12 percent and water saturation

38 percent. The permeability was reported as 100 mD, but they were unable to comment on how much natural fractures contribute to this permeability. Potential reserves are estimated at 75-200 million barrels for this 1,600 acre field, and they are hoping for 50 percent oil recovery. The finding costs were $5.5 million split among 10 partners. Estimated development costs for the field are $56 million.

Doug Strickland gave further information at an RMAG luncheon meeting in Denver on June 3. Doug described how Wolverine used the good dipmeter data from a Chevron well drilled to 17,000 ft in 1981, and conventional seismic, to determine that they could drill 1,500 ft higher on structure. Drilling motors and modern mud systems kept the well on target through the highly deformed and salt-rich Arapian shale. The Navaho sandstone did not show up on seismic, so they had to rely on the deepest salt layer in the Arapian as a marker. Formation water is fresh with an Rw of 0.4-0.6. The reservoir has a water drive and they expect to have a total of 12-15 wells on 160-acre spacing. Production is projected to reach 5,000 BOPD by August of 2005.

Wolverine has 500,000 acres under lease in central Utah and has identified 25 drillable structures.

To summarize, a story of how patience and perseverance can pay - in this case, 500 ft of pay.

Note: With increased activity in Utah, both industry and government agencies are finding the website (http://geology.
utah.gov/emp/pump
) developed by the Utah Geological Survey in a DOE-supported PUMP II project quite helpful.

Schematic east-west structural cross section through Sevier Valley (line of section shown on map) just north of the 2004 discovery of the Covenant oil field showing potential exploratory drilling targets in anticlines between thrust faults. Modified from Villien and Kligfield, AAPG Memoir 41, 1986.


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PTTC

2nd Quarter 2005