• Anadarko Basin Hunton Horizontal Pumps 743 BOPD

     • Hunton Reservoir Presentation

     • Schlumberger Logging Presentation

Located approximately five miles south of Will Rogers International Airport in Oklahoma City, Short Junction Field is operated by EnDevCo’s subsidiary, EnDevCo Eureka, LLC. The Field was originally discovered in 1948 and during the 1950's was partially developed by Conoco. Oil production has been continuous since that time. Estimates of the original oil in place range as high as 250 million barrels from the Bois d’Arc member of the Hunton formation where most of the historical production has taken place.  However, during the life of the Field, less than 10% of that oil has been produced. The prolific Hunton formation is a fractured limestone reservoir comprised of the Bois d’Arc, Haragan, Henryhouse, and Chimney Hill members wherein oil is trapped in a stratigraphic pinchout of the formation against the deep seated "Oklahoma City High" located to the north.

Short Junction Field covers 18 square miles and is comprised of the West Short Junction Unit and the Central Short Junction Unit which represent 12,000 acres of oil and gas production. The entire productive limits of the Hunton formation are fully unitized and operated as a single producing field. Originally wells were drilled on 40 acre spacings primarily in the Bois d’Arc member in an attempt to tap the Hunton and effectively drain the relatively low permeability reservoir. This resulted in over 270 wells being drilled to a depth of 8,000 – 8,400 feet in the Field. Today, the Field is currently producing from 23 vertical oil wells, 1 horizontal oil well and 2 gas wells.

HISTORY

Following 14 years of primary production, Conoco installed a water flood system during the 1960's in an attempt to improve oil recovery by pumping water into the formation to sweep additional oil from the reservoir. This proved to be an unsuccessful technique to improve oil recovery due to the fact that the fractures in the limestone provided low resistance pathways for the water to break through, thereby leaving vast areas of the Field completely untouched by the injected water flood. Conoco abandoned the water flood program in 1980 and sold the Field in 1988 to a small Oklahoma independent to plug and abandon a majority of the wells while continuing to produce those wells that were still considered economic. By 2003, the production from the entire Field had dwindled to less than 15 barrels per day and only 34 wells were left unplugged and capable of producing oil. The new technologies that have been developed and the dynamic increase in oil and gas prices since Conoco sold this Field to be plugged and abandoned have given Short Junction Field dramatic new economic life. EnDevCo purchased the Field in April 2006 for $11.5 million and plans to take advantage of innovative technologies to develop the tens of millions of barrels of oil remaining to be produced. EnDevCo drilled the first of seven horizontal wells earlier this year, and preliminary results show that the WSJU #109StH well reached a peak production of 293 barrels of oil and 250 Mcf of gas prior to any fracture stimulation. In order to further increase production from the well, EnDevCo is utilizing Schlumberger’s “StageFRAC Multistage Fracturing and Completion” and StimMAP LIVE hydraulic diagnostics services.

HARVEST THE LOW HANGING FRUIT - "Proved Behind Pipe Reserves"

EnDevCo has conducted an extensive review of the producing history and subsurface geology on all 270 wells originally drilled in Short Junction Field. Located above the Hunton reservoir, the Bartlesville, Prue, Red Fork, Skinner and Lyle sandstones are present in the Field and most are indicated as productive based on well log analysis. While these pay sands are proven productive across Oklahoma, in the case of Short Junction Field, these pay sands were never universally produced by previous operators. In most cases, when the wells were abandoned, the casing was left in place over these pay zones, thus protecting the formation behind pipe from leaking gas and oil back to the surface. These "behind pipe" reserves have been evaluated by DeGolyer & MacNaughton, an independent third party engineering firm. Many of these pay zones can be tapped immediately by re-entering existing Hunton wells with marginal production and re-completing and establishing additional production in these shallower pay sands. Where surface casing has been previously shot off and pulled from the well bore, a procedure known as a wash down can be conducted to reconnect casing from the surface to the original casing left in the hole at abandonment. These types of operations can be successfully carried out at a fraction of the cost of drilling new wells. Once the pay sand has been perforated, EnDevCo will apply nitrogen and CO2 foam fracs to these reservoirs to increase oil and gas production rates.

UPSIDE POTENTIAL

Hunton Gas Cap
Bottom hole pressures recently measured in the Hunton reservoir indicate that formation pressure today is essentially the same as when the Field was originally placed on production. EnDevCo believes that this very uncommon characteristic is a result of Conoco having instituted a water flood pressure maintenance program in the early stages of development. Also, Conoco engineers purposely avoided any gas production in order to maintain overall reservoir pressure to maximize primary oil production. As a result of this pressure maintenance, it appears that the gas cap in the Hunton reservoir has never been produced. Following a more complete reservoir simulation study of the Hunton reservoir, this concept will be tested through the re-completion and wash down of existing wells located in the northern end of the Field.

Hunton Oil Production
Conoco originally estimated that 250 million barrels of oil were trapped in the Bos d’Arc member of the Hunton formation. As a result of the Hunton limestone reservoir characteristics, only 10% of that oil has been produced through the 270 vertical wells drilled on 40 acre units during the 1950's. Today, reservoirs of this same type in West Texas and the Middle East are routinely drilled using under-balanced horizontal and multilateral drilling techniques that provide maximum reservoir contact between the well bore and the hydrocarbon bearing formation. Using these advanced drilling techniques, in many instances produces, ten fold increases in daily production rates. EnDevCo is planning an advanced engineering study, which will be combined with 3D seismic reservoir characterization methods to identify those areas of the Field that should be drilled using these techniques.

Reserves Classification
The DeGolyer & MacNaughton proved reserves evaluation for the Short Junction Field as of March 31, 2008 is 26,807,885 barrels of oil equivalent.

Click Here For Full Reserves Report

Exploration for Deep Potential
Following the acquisition of a field wide 3D seismic survey, the potential exists for the identification of exploration prospects to be developed in the deeper undrilled geology underlying the Hunton formation. Scattered deep wells have already penetrated these horizons which are productive elsewhere in Oklahoma and include the Viola and Arbuckle formations and possibly the Bromide sand reservoir.

Unconventional Gas Development
Unconventional gas resource plays in shales are currently undergoing an unprecedented development in basins all across the Mid Continent of the USA. Specifically, in southeastern Oklahoma, drillers are beginning to experience success in tapping the rich Woodford Shale for natural gas reserves. This formation is present across the southern half of Short Junction Field in sufficient thicknesses to represent a potential drilling target. EnDevCo is investigating this play concept for possible future development.

PRODUCTION FACILITIES

Included with the Short Junction Field purchase are full ownership rights to a recently refurbished field wide gas pipeline and gathering system that offers two independent metering stations for access to the interstate gas transmission system. Most wells are produced using the traditional pumping units often associated with the oil business. Oil is produced at each well and is sent via small underground pipelines to the five central tank batteries, where produced oil and water are separated. The oil is stored in large tanks and is subsequently trucked to a refinery where it is sold. The Hunton formation water produced with the oil is re-injected by the Field’s four salt water disposal wells into a shallower formation suitable for water disposal to avoid high third party water disposal costs.

This web page includes certain "forward-looking statements". The forward-looking statements reflect the beliefs, expectations, objectives, and goals of EnDevCo, Inc. management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results. Important factors that may impact actual results include, but are not limited to commodity prices, political developments, legal decisions, market and economic conditions, industry competition, the weather, changes in financial markets and changing legislation and regulations. The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 21E of the Securities and Exchange Act of 1934, as amended.

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