Canadian Company Spotlight

• The Kupcake Prospect Leases are immediately adjacent to the 100 million barrel Liberty Field which is not yet in production and 20 km from the 13 billion barrel Prudhoe Bay Field.
• BP first discovered the Liberty Field in 1997.  Plenty of exploration work is needed to fully understand all the Oil and Gas potential in that part of Alaska.
• It is estimated that a successful stratigraphic test well at the Kupcake Prospect would result in a new field discovery with a best estimate prospective resources of 57,935 MSTB within the seven Savant leases only.
• The Aquitaine Maritime Permit is a large, well studied block previously estimated by Esso to hold between 300 and 1.6 Billion bbls recoverable.
• There are three large refineries within 200 km of the Aquitaine Maritime Permit.
• The Aquitaine Maritime Permit is located in a G7 Country with zero political risk and is focused on domestic resource development.
• Previous economic studies done on the Orca well (Aquitaine Maritime Permit) alone estimate peak cycle production rates of ~100,000 bbls per day, with a life span of 33 years averaging approximately 23,000 bbls per day.
• The Onshore Basin extension has had 1.2 billion bbls of oil discovered and 350 MM bbl produced to date near the Aquitaine Maritime Basin.
• The Aquitaine Maritime Permit benefits from royalty free operations in offshore areas of France.

Alaska Project - Kupcake Prospect

In March 2006, Savant Alaska LLC, a Denver based independent operator, acquired seven leases on the Kupcake prospect (Figure 1) at a State of Alaska lease sale with a total acreage of 14,646 gross acres. The Company can earn a 30% interest in these leases by paying 40% of the cost of the exploratory stratigraphic test well Kupcake #1 and 30% of the seismic and land costs to date. Combined royalties on the leases are 20%. The Leases are immediately adjacent to the 100 million barrel Liberty Field which is not yet in production and 20 km from the 13 billion barrel Prudhoe Bay Field.

For the Location of the Kupcake Prospect Area, click here.

Bordeaux expects drilling of the first exploratory well on the Leases will commence in late-February 2008 and will take approximately 30 days to reach target depth. The Exploratory Well will be drilled to a depth of approximately 11,000 feet to test a prospect identified by Savant on a large 3-D seismic survey that was acquired in 1993 and 1995. The well is expected to cost a total of US$16 million to drill, case and test, of which Bordeaux's share will be US$6.4 million.

Under the Participation Agreement, the Company has the right to earn an undivided 30% working interest in the Leases by paying (a) 30% of the land and data costs (approximately US$1,200,000), and (b) 40% of the costs and expenses of the Exploratory Well up to a maximum cost of US$7,000,000, net to Bordeaux after which Bordeaux will pay its proportionate 30% share of any additional costs. Upon completion of the Exploratory Well, the Company will have earned an undivided 30% working interest in the Leases and each of the parties must pay its participating interest share of the future costs and expenses relating to the Leases.

Exploration History

In 1995, BP shot the NW Badami 3D seismic program and in 1996 acquired leases in the area. In 1997, BP drilled Liberty #1 which resulted in a new field discovery in the Kekiktuk Formation. In 1998, BP reprocessed the 3D survey and mapped the Kupcake Prospect. However, BP allowed the leases south of the Liberty Field to expire in 2005. Savant Alaska then acquired seven of these leases in March, 2006.

Geology

The North Slope Basin is geographically located on Arctic Coastal Plain of the State of Alaska and is bounded to the south by the Brooks Mountain Range. The North Slope Basin contains the major oil and gas fields of Alaska including the supergiant Prudhoe Bay and Kuparuk River fields.

BP first discovered the Liberty Field in 1997, an oil field adjoining and northeast of the Tigvariak fault that is productive in the Ellesmerian Kekiktuk Formation with estimated reserves of 120 MMSTB of recoverable oil. The faults forming the graben are clearly visible on the 3D seismic and the fill in the accomodation space is interpreted to be reworked Kekiktuk sands derived from the north and west and known as the Kemik Formation.

Prospective Resources

It is estimated that a successful stratigraphic test well would result in a new field discovery with a best estimate prospective resources of 57,935 MSTB within the seven Savant leases only. Based on geological and geophysical mapping of the prospect it could extend outside the seven leases currently held and therefore the prospective resources contained within the total prospect could be higher.

Low and high estimates of prospective resources were obtained by varying net pay thickness and resulted in a low estimate of prospective resources of 47,711 MSTB and a high estimate of 68,158 MSTB on the Savant leases.

Productivity Estimates

It has been anticipated that in the best estimate case, initial single well production from the Kemik Formation would be 7000 STB/d then commence a gradual decline to an eventual economic limit based on reported production history from the analogous Pt. McIntyre Field. Over the life of the field, five wells with a maximum production rate of 35,000 STB/d would produce the best estimate recoverable oil resources of 57,935 MSTB per field. For the low estimate case, five wells at a maximum production rate of 28,750 STB/d would produce the low estimate recoverable oil resources of 47,711 MSTB. For the high estimate case, five wells at a maximum production rate of 41,250 STB/d would produce the high estimate recoverable oil resources of 68,158 MSTB.

Production is anticipated to commence from this block in early 2011.

France Property - Aquitaine Maritime Permit

The Aquitaine Maritime Permit is located on the northern edge of the Parentis Sub-Basin and lies 20-80km offshore the coast of southern France. The nearest city to the Permit is Bordeaux. The Parentis Sub-Basin is the northern part of the Aquitaine Basin, which consists of two Sub-Basins, Parentis in the north and Adour to the south, separated by the Landes High.

For the location of the Aquitaine Maritime Permit, click here.

The Parentis Sub-Basin (the "PSB") extends partly over the onshore where 11 fields, operated by Vermilion, have been discovered containing more than 1.2 billion barrels of original oil in place ("OOIP"), of which about 380 million barrels has been produced.

The largest fields discovered onshore are Parentis, with approximately 800 million barrels of OOIP, and Cazaux, with about 160 million barrels of OOIP. While the onshore part of the PSB has had a significant exploration effort and a number of commercial discoveries have been made, the offshore part of the PSB is largely unexplored. To date, the Company believes that only twenty-three wells have been drilled in the offshore (including the well drilled by the Company in the summer of 2007), with twelve of these wells encountering oil shows, seven having oil on test and two with oil columns. Of these twenty-three wells, only two have been drilled in the past twenty-four years and are therefore likely to be the only wells that were drilled with the benefit of 3-D seismic. However, there have been no commercial accumulations of oil or gas discovered in the offshore PSB.

Orca, the largest structure on the Aquitaine Maritime Permit, was drilled by the Company and its partners during August and September of 2007. The well encountered a thick sealing element and a thick section of the target Aptian age sandstones, however, no hydrocarbons were discovered and the well was abandoned at a final depth of 2300 metres. Further evaluation of the data gathered from this well, together with integration of the Orca-1 well data with the 3-D seismic, will provide a better understanding of the potential of the remaining five, undrilled structures on the Permit.

Resource Facts

AllPennyStocks.com © 1999 - 2012. AllPennyStocks.com is a web publishing venture produced by AllPennyStocks.com Media, Inc.