Date: Wed, 19 Nov 1997 23:56:14 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 13231 Last-modified: Wed, 09 Jul 1997 15:34:23 GMT
Studies by Gulf Oil, the U. S. Geological Survey, and other oil exploration companies identified Nevada as the one remaining area in the U. S. with the potential for the discovery of fields with reserves greater than 100 million barrels. |
In 1993, Foreland supplemented its exploration program with the acquisition of the Eagle Springs Field, located in Railroad Valley, Nevada. By utilizing a proprietary 3-D seismic data set, Foreland's development drilling program has met with a 100% success rate, far exceeding the typical Nevada development success rate of 50% to 60%. At the same time, Foreland has reduced the operating costs at Eagle Springs Field, increasing the margins realized from each barrel produced.
With our most recent discovery of the Ghost Ranch field, Foreland's future is exciting and bright. With the largest acreage position, state-of-the-art technical expertise and a massive data base, Foreland is indeed positioned to discover Nevada's hidden oil treasures while we continue to develop cash flow and reserves at our Ghost Ranch and Eagle Springs Fields. Please read on to understand a little more about who we are, why we are in Nevada, and where we are headed.
While some oil industry analysts and oil companies believe that all of America's major oil fields have been discovered, many others are equally convinced that, although geologically complex, North-Central Nevada is one of the last remaining areas in the United States that has the potential for the discovery of major oil reserves. Nevada contains the geological conditions necessary for the formation of giant (100 million barrel) oil fields in an area which is economically reasonable to explore and politically safer than any foreign venture. While historically, seismic has not been very successful at imaging the subsurface, recent advances in seismic, including 3-D seismic and new processing technology, have improved Foreland's understanding of the subsurface, dramatically improving the potential for successful exploration. To a company the size of Foreland, each exploration success in Nevada will reward our shareholders many times over.
In 1980, Gulf formed its Central Exploration Group to unravel and better understand the complex geology in North-Central Nevada. The study documented the abundance of organic-rich source rock, thick reservoir sections and the trapping mechanisms necessary to generate and accumulate over one billion barrels of oil. Early evaluations concluded that the probability of discovering 100 million barrels of oil or more was relatively high.
AVERAGE PRODUCTION PER WELL PER DAY BY STATE | |
STATE | BOPD |
Nevada | 56 |
Utah | 29 |
California | 25 |
Wyoming | 20 |
New Mexico | 10 |
Texas | 9 |
Colorado | 8 |
Oklahoma | 3 |
Subsequent drilling in Nevada has confirmed the area's potential. Historically, many of the wells have had flow rates of 500 to 4,000 barrels per day and Nevada's oil wells are on average far more productive than those in more well known oil producing states. It is for these reasons that many companies, large and small, conduct exploration programs in Nevada.
Although Foreland was originally composed of the core group of the Gulf Nevada study, as the company has grown, additional complexities such as 3-D seismic and reservoir engineering have been encountered. To meet these challenges, Foreland has added experienced Nevada personnel with diverse major company backgrounds, each of whom brings their individual expertise to the program. Foreland’s technical personnel have over 75 combined years of Nevada experience.
The company has supplemented its geological data base with a multi-disciplinary geophysical program. Through a series of Exploration Agreements, Joint Ventures and Farmout Agreements, Foreland has made very substantial additions to its own technical evaluation through access to the most recent data generated by companies such as Exxon, Mobil, Chevron, Enserch Exploration, and Berry Petroleum. Based on the successful application of 3-D seismic at the Eagle Springs Field, Foreland demonstrated that 3-D is able to unravel many of the structural complexities in the subsurface that could not be resolved with conventional 2-D seismic. Foreland's first 3-D seismic defined exploration target, the Ghost Ranch prospect, confirmed 3-D's utility and cost benefit and validated Foreland exploration methods.
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By integrating all aspects of Foreland's exploration data base, Foreland personnel have identified numerous exploration prospects. Through direct leasing and various agreements with recognized industry partners, Foreland has built an unsurpassed land position with over 600,000 acres included in its exploration portfolio.
Through Foreland's various exploration partnerships, the company continues to increase its exposure in various areas. Foreland is operator in all of these agreements, recognition by the industry of Foreland’s technical expertise and attention to cost containment.
Utilizing the cash flow from Ghost Ranch and Eagle Springs fields, Foreland anticipates that six or more exploratory wells will be drilled in each of the next several years over a number of seismically defined prospects.
Foreland is positioned to build shareholder value through successful exploration of the last major frontier area within the continental United States. |
With over 75 years of technical expertise in Nevada, an extensive accumulation and interpretation of geological and geophysical data, an excellent land position, and proven exploration success, Foreland will continue to be the dominant independent producer actively exploring in this major frontier oil province where the potential reserves may exceed 1 billion barrels of oil. Using Foreland's philosophy of defining numerous 25 million to 400 million barrel drilling targets, accumulating a substantial lease position, and sharing the drilling risks by leveraging its interest through participation with industry partners, Foreland Corporation is truly positioned to reward its shareholders with dramatic growth.
Foreland Corporation - Copyright © 1997