Arconenergy, Inc. (Long Term Investors and Fundamentals) Message Board

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Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals)

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To: Ga Bard who wrote ()	2/7/1998 8:40:00 PM
From: Ga Bard	of 1757

Oil and Gas Division Arcon Energy has significant management and technical expertise in the Oil and Gas Industry. The industry is currently experiencing major growth and activity in both the domestic and foreign arenas. The Company will aggressively participate in this activity and has taken major steps in acquiring properties and projects which will make giant contributions to the Company's asset and revenue base. The Company's first major project lies within the productive limits of the great Bob West field of South Texas. This field, discovered in 1990, produces from the upper Wilcox (Cretaceous) formation and to date is the largest field in the Wilcox trend. The field produces from 27 major sandstone reservoirs. Several additional sands are prospective below these reservoirs. Wells completed with high volume fracture treatment have typically produced at rates at 12,000 to 15,000 mcf per day. Per well reserves are estimated at up to 36,000,000 mcf. Total estimated field reserves have been estimated at over 1,000,000,000 mcf (trillion cubic feet). Arcon believes that our acreage will add significantly to those estimates. Early indications are that the Company's leasehold could contain an additional 300,000,000 mcf or more. Development of the property could ultimately require 24 or more wells with development drilling continuing to the year 2010. Arcon has entered into a definitive letter of intent to acquire certain leasehold within the geographical boundaries of the Bob West field. Three existing wells penetrating the Wilcox on the subject leasehold have established the productivity of the Wilcox formation correlative to that interval in Coastal Oil and Gas Company's well to the north. Poor completion techniques and inadequate stimulation of these wells resulted in poor performance. Arcon believes that using modern fracturing technology on wells drilled on our leasehold will result in producing rates consistent with those in the northern offset wells. As an added benefit, log and cores indicate that the Queen City sand at approximately 2900 feet is gas productive. The Queen City formation is an established regional produces of gas and oil. This additional production will add to the over all value of the project. The Company will finance the project through alliances with industry partners or private investor groups and institutions or combination of both. Arcon is also negotiating for the acquisition of a major exploration project in South Texas in the proximity of several major gas fields tat have produced over one trillion cubic feet natural gas from multiple formations at depths of 2,000 feet to 13,000 feet. The project is well documented geologically with well control and seismic data while exploration programs typically are subject to a high degree of risk, this project is deemed to be in the lower range of risk. The Company will offset its risk with industry participation. Several other projects are currently under evaluation. Arcon expects an exciting and rewarding year in oil and gas exploration and development.

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