United States
Grays Harbor Basin – Washington State, Comet Ridge 100%
Comet Ridge via its wholly owned subsidiary, St. Helens Energy, LLC, (St. Helens) has secured a 2 year lease option on over 420,000 acres (1640 sq km) covering a large part of the prospective Grays Harbor Basin in western Washington State, USA. The Company owns 100% and is the operator.
Objectives
St. Helens is pursuing conventional oil and gas in predominantly structural traps under this extensive land holding. This opportunity provides shareholders with significant leverage to exploration success. The Company views the basin to have excellent potential for commercial success despite it having only been lightly explored. All of the key parameters necessary for commercial oil and gas accumulations are present including: oil and gas shows (mature source rocks), multiple good quality sandstone reservoirs, seismically defined structures, good seal rocks, excellent access and pipeline infrastructure in place.
The option agreement comes with an inventory of 15 mapped leads, access to an extensive geological and geophysical database and the 960 km or 600 miles of two dimensional seismic data. Indicative reserve potential for the existing leads ranges between 50 and 250 billion cubic feet (BCF) of gas. Clearly, success at Grays Harbor will add very significant value to the Company.
The seismic data is of particular importance as it has not been reprocessed since the early to mid 1980’s. There have been a number of very significant seismic processing advances in that time frame that help add resolution to the data and might also be able to differentiate gas accumulations via certain seismic attributes.
Timing and Work Program
Processing of the 2D seismic is expected to commence in early August. The reprocessed data will then be re-interpreted along with the available sub-surface data. The Company is planning to acquire new seismic data in the spring of 2007 (or earlier if possible) to further delineate the previously mapped leads to bring them up to drillable status for planned drilling in the latter half of 2007.
