Spanning three & a half decades, Sandalwood has been successful in being able to lease, explore and successfully develop its oil and gas production in some of the most highly sensitive areas of the Gulf Coast. The following are a few examples of Sandalwood's success in difficult areas of oil & gas exploration and development.
Norman Hurd Field After evaluating updip Wilcox geology and production in the Tyler and Jasper County area, Sandalwood acquired 3D seismic data over prospective areas and leased 300 acres just east of the 1930's vintage Joe's Lake Field (7 MMBO). A wildcat drilled in late 2014 confirmed three productive oil sands on a structure saddle-separated from Joe's Lake Field. Three development wells have been drilled, and cumulative production totals 275 MBO through 2015. Current production is ~ 1000 BOPD. Raccoon Bend Salt Dome In 2008 Sandalwood, acting as operator, participated in a prospect generated by Taylor-Thanheiser in a test of a small Wilcox fault block on Raccoon Bend Salt Dome located in Austin County, Texas. Seventeen previous tests of the Wilcox had resulted in a total cumulative Wilcox production of only 15,000 BO. The test well found three productive Wilcox sands, and after integrating the results with the 3D seismic data, led to a total re-evaluation of the dome, a successful reprocessing of the seismic data, and a farmout of all of ExxonMobil's ~ 12,000 acres of deep rights on the dome. Nineteen wells were drilled, finding thirteen commercially-viable oil-productive sands in several small, steeply dipping fault blocks. Total cumulative production attributable to the new drilling is 2.1 MMBO and 1.9 BCFG through 2015. Sandalwood 2001 Program In early 2001, Sandalwood hired Daniel L. Smith as Vice President of Exploration. Mr. Smith is a former AAPG President, and has over 50 years of oil & gas exploration experience in South Louisiana. Mr. Smith brought numerous prospective areas to Sandalwood for exploration and development which became the basis for the 2001 Sandalwood Program. This program participated in the drilling of 26 wells. The total cumulative production for 2001 Program wells is more than 110 Bcf + 1.6 MMBO.
The most challenging prospect ever put together by Sandalwood was its Stella Prospect, which was part of the 2001 Program and encompassed lands along both sides of the Mississippi River in Plaquemines Parish. Significant challenges of the Stella Prospect included the development of minerals under the Belle Chase Naval Air Station after 9/11, and a natural gas pipeline boring under the Mississippi River to market gas from the east bank of the river (which had no gas pipeline infrastructure) to the natural gas markets located on the west side of the river. Sandalwood caused 8 wells to be drilled on the Stella Prospect, acquired more than a thousand leases and directionally drilled under the Mississippi River, the Naval Air Station and other considerable infrastructure. The Stella wells produced at a maximum rate of approximately 37 MMCFD and have produced greater than 57 BCF + 740 MBO.
Welder Ranch & Welder Wildlife Foundation From 1985 to 2001, Sandalwood's exploration efforts were focused in the South Texas Gulf Coast. Most of the wells drilled during this period were in San Patricio and Jim Wells Counties, Texas, the majority of which were located on Welder Ranch and Welder Wildlife Foundation properties. Through Sandalwood's development of its strong relationships with the Welders, O'Connors and the Welder Wildlife Foundation, Sandalwood shot 200 miles of 2D seismic, 80,000 acres of proprietary 3D seismic and drilled over 90 wells in this area.
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