TULSA, OK--(Marketwired - Feb 20, 2014) - Bayport International Holdings, Inc. (OTC Pink: BAYP) -- Bayport International Holdings is pleased to announce the signing of contract to acquire 5.0% working interest and 3.75% net revenue in each of the five wells in a new drilling program in the Fogle Lease, Forest County, Pennsylvania. The contract is for wells numbered 13, 14, 15, 16, and 17, which are permitted with the Pennsylvania Department of Environmental Protection (PA DEP).
Drilling permits may be found at the Official State of Pennsylvania website or directly by following the link below.
The Fogle Lease is north 2,500' from the Steffelbeam Lease. The Fogle Lease had one well drilled by Quaker State in the late 70s and/or early 80s, and we do have knowledge that the one well drilled was to the 2nd sands, leaving the 3rd and 4th sands untouched. Very recently a test well was drilled on the Fogle Lease to confirm that all the Venango formations are present.
Bayport International Holdings is currently a 5% WI / 3.75% NRI holder in the Stefflebeam Lease and we are very pleased with the performance of the Steffelbeam lease to date. The Fogle wells are anticipated to be in full production within the next 30 days and updates with regards to the site activity and photographs of the drilling site will be found on our company website as soon as the driller begins. Production numbers and other factual data will also be supplied via our website, as we receive it.
The following is a geology report for the Fogle Lease located in Forest Co., Pa. This approximate 67 acres on the Fogle Lease is located northeast of the town of Titusville, Pa. This area has always been prolific in the production of oil and natural gas. The preliminary target zone for wells on this lease will be the Venango sands. The Venango Sands formations are the Red Valley, Lytle, 1st Sands, 2nd Sands, 3rd Sands Stringer, 3rd Sands and 4th Sands. These oils and gas bearing formations are found throughout this immediate area and historically have been good producers. All zones should be encountered at drilling depths of approximately 900-1300 ft., depending upon the elevation. Well records found in the vicinity show the presence of these formations on and near the lease. This lease is off-set on all sides by operating oil and gas wells, owned and operated by various independent operators.
This comprehensive report was produced using information through the United States Geological Survey and the State of Pa. publications and data available through the PA DEP website.
It is the purpose of this report to evaluate the geologic factors pertaining to the prospective oil and gas well drilling locations located in Forest County, Pennsylvania, known as the Fogle Lease. This report is based on information gained from on-site inspections and information gained from logs, oil field maps, and other publications of the U.S. Geological Survey (USGS) and the Dept. of Environmental Protection for the state of Pennsylvania (DEP). With the information included in this report it is the intention to give an indication of the potential for successful drilling operations of this lease.
Pennsylvania has been acknowledged as the birth-place of the oil and gas industry since Edwin Drake drilled the first commercial oil well near Titusville in 1859. Prior to the invention of the internal combustion engine the primary usage for crude oil was as lamp oil and medicines. Soon after the finds in the Venango County area early drillers moved out into the surrounding counties of Butler, Bradford, Forest, and Warren of northwestern and central Pa. With the early technology available these drillers searched and found oil in the relatively shallow sandstone formations of the Venango Sands groups. Some of these early wells blew out at over 10,000 bbl. of oil per day. The drive that forced this oil out at such high rates was the natural gas that was also present. Before a market was found and pipelines were built much of this natural gas was wasted, being vented or flared to atmosphere. The intense market demand for crude oil created a boomtown history that reviled anything in the gold fields of California. Spin-off industries such as transportation, refining and paraffin extraction created a job base that lasts today.
Up until the mid-1930s this region of Pa. was the world's leading exporter of oil. The majority of these early wells were drilled to a depth less that 3000 ft. The success rate of wells drilled in this known region of Pa. has been approximately 95%. Drilled and production operations have continued in this region. The factor for drilling activity in this region has always been the market value of the oil and gas. The lowest risk and greatest potential from drilling successful wells is to pursue development drilling activities. This is to drill new wells within the proven boundaries of previous activity. With the rare exception the days of the big gushers are a thing of the past. While most of the oil and gas remains trapped in the reservoir rock the easy production was obtained and in many cases historically squandered. Drilling and production methods of the early days were to drill to the targeted formation and either produce the wells through natural flow or stimulate the formation by setting off charges of nitroglycerine. Availability of extractible petroleum is a function of porosity, permeability, and size of the formation. (See Terms and Definitions)
Modern techniques in drilling, logging, and hydro fracturing can help to maximize return returnable production. Working within known geographic areas of oil and gas fields, using modern drilling, completion, and production techniques, attractive tax incentives, and the current market price of oil and gas should make drilling on these leases an attractive enterprise. At the conclusion of this report are maps, logs, and other pertinent information relative to the Fogle Lease.
It is the best appraisal that wells drilled on the Forest Co. Fogle Lease have a great chance of being economically productive. These leases give a drilling program a nice balance of oil and natural gas production. Ideally a 10 - 15 barrel oil per day (bopd), initial production, can return in approximately 1500 - 2000 bbls of oil in the first 24 months. Shallow wells go through a decline curve after a short period of flush production and settle down to a rate that may be maintained for many years. It is quite common for wells in this region to continue to operate economically for (20) years or more after drilling. Of course this economical life span is a factor to the price of being received for the oil.
It is imperative that all prudent oil field operations as to drilling, completing, and operating of these wells be observed. All potential producing formations should be evaluated, not only for the presence of oil but also to avoid any excess brine production. It is my opinion that with the nature of off-set drilling success rates, known production zones, relatively low cost to drill and operate, and the high price being currently paid for the end product of oil and gas, wells drilled on the Fogle Lease have a great change of being financially successful.
The target production for oil and gas in western Pennsylvania is the Upper Devonian sediments in the Appalachian Basin. These blanket-like productive zones extend in a range in northeast-southwest zone extending from western New York into western Pa., eastern Ohio, and West Virginia. These depositional sediments are a result of erosion of mountain ranges to the east and near shore beach and shallow sea environments that existed during the Devonian Age, approximately 400 million years ago. These shallow sea depositions are known as the Chemung Facies. The shallow sea that existed at that time teemed with flora and fauna, whose decomposed bodies would eventually, under time and pressure, become the petroleum we seek today.
During this time of geological chaos these was a continuing uplift and with pressures exerted by colliding landmasses these shallow water sediments were compressed into the sandstone reservoir formations that contain the petroleum reserves. Layers of other type of impermeable rocks were subsequently deposited and acted as a cap rocks to help trap the petroleum within the sediments. This process was repeated many times thus creating an almost layer-cake effect of multiple producing zones of porous sedimentary, petroleum bearing formations, trapped within more impermeable formations of shale, chert, or limestone. It is these lenticular, multiple layered zones of sandstone from which old and gas is found. Within these shallow multiple sandstone formations are found over 500 oil and gas fields, which have produced, over time, 1.3 billion barrels of oil and 9 trillion cubic feet of gas.
About Bayport International Holdings, Inc.
Bayport International Holdings, Inc. is a company formed to exploit the various precious minerals in the U.S. to acquaint the public with practical investment opportunities in strategic metals and minerals. Bayport International Holdings, Inc. is primarily focused on oil and gas ventures, with holdings in precious metal mining claims. Bayport International Holdings, Inc. is developing mining and oil and gas properties with economic potential with the aim of bringing such properties to commercial production. The company's portfolio of properties is primarily located Pennsylvania, and in the prolific western USA in Utah and Texas.
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