Biogenerics Commences HydroSlotting Drilling Program in Grimes, California Location
19 May 2005
Biogenerics Limited (NQB::BIGN) today announced that Hydroslotter Corporation has completed analysis of an initial target well in Grimes, California and the Joint Venture will commence, utilizing the hydroslotting proprietary technology to maximize well potential.
The target well is located in the West Grimes Gas Field, in the Sacramento Basin, in Colusa County, California. It is a shut-in well that was originally drilled in 1986 and encountered potential gas pay in one of many intervals in the Forbes Formation. A total of 380 MMCF gas was originally extracted from only one zone (avg. 300 MCFD). Geologically, the West Grimes gas field is one of a number of deep-marine depositional environments in the Forbes Sandstone Formation.
Biogenerics is focusing on five different behind-pipe potential pay zones. The analysis has shown that several of these behind-pipe zones have large quantities of additional gas. Numerous wells in this immediate area have produced out of these other Forbes Formation zones at very prolific flow rates (up to 4,000 MCFD), have yielded excellent per well reserves (up to 5 BCF per well), and have long productive well lives.
One exciting aspect of the hydroslotting technology is that it is one of the only technologies that works increasingly effectively to increase pressure. The Forbes Formation is overpressured to a 0.6 or 0.7 gradient, instead of 0.5 which would be natural for this depth, which should show strong technological results for this program. In addition, 99% of all chemical treatments that are applied to this Formation without anything else have failed. Experience has shown that hydro-fracture treatments are ineffective. Successful implementation of hydroslotting will prove that hydroslotting offers major benefits that are exclusive from all other technologies and will offer many benefits in all high-pressure formations. In the future this aspect may lend itself effectively to deep trek formations.
"The Andreotti well is an example of our strategy of focusing on low-risk exploration activities with concentrated efforts on technology, which we contend, will generate production levels not available in today's market," stated Gary Kelley, Chief Executive Officer. "Biogenerics has minimized the up-front capital needed for this hydroslotting program with the possibility of increased cash flow. This provides a sound basis for the Company's continued growth as a profitable and successful energy producer."
"Additionally, we have started our hydroslotting drilling program in the 'dry' season, typically from April to November, and have avoided the contingency costs of the considerably more expensive 'wet weather' conditions," Kelley concluded.
GEOLOGICAL BACKGROUND OF THE FORBES FORMATION
The Forbes Formation represents deposition in a southward prograding deep-sea fan-channel to outer-fan deposit system fed by a deltaic system of a shallowing Late Cretaceous fore-arc basin. A great variety of traps are apparent based on this depositional model.
The majority of Forbes Formation gas production is from stratigraphic traps. Trap geometry was established by Oligocene time. Basin-wide faulting occurred prior to deposition of the late Eocene to Oligocene because the late Eocene through Miocene-Pliocene non-marine sedimentary rocks (less than 4,000 ft) truncate these faults.
The fan system is fed by numerous, smaller "gullies" which are derived from the Kione fluvial-dominated delta. The resulting fan system is not a well-defined, discrete fan, but a series of smaller fans, comprising a fan system. The delineation of channel systems associated with fan systems aids greatly in gas exploration and development.
Migration of deltaic lobes and the associated deep-sea fan deposits result in a complex lateral and vertical distribution of sandstone bodies of the Forbes Formation in the Sacramento Basin. Mudstones and turbidites lie in the middle of the Forbes Formation, often with unfossiliferous, cross-bedded, and coarse-grained sandstones.
The Forbes sands are rich in mud with very little sand. Forbes sands have calcite and are not siliceous. The rock is arcose (derived from granite) with kaolinite and illite clay matrix. Forbes Sands are lenticular or formed like lenses. The Forbes Formation is overpressured to a 0.6 or 0.7 gradient, instead of 0.5 which would be natural for this depth.
Future news releases will keep shareholders informed of Biogenerics' continuing progress and drilling activity.
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Contact:
DeMonte Associates
Cynthia DeMonte, 212-605-0525
cdemonte@aol.com
www.demonte.com
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Source: Biogenerics Limited
Source: Business Wire
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