Texas Energy Group
19019 HWY 71 West
Spicewood, TX 78669
Ph. (512) 263-8106
Fx. (512) 263-8136
Investor Relations
Ph. 877-TXENRGY
(877-893-6749)
|
 | Risk Factors |
|
|
The ownership of working interests in oil and gas properties involves a high degree of uncertainty, particularly with respect to the quantity of oil and gas any given property is capable of producing. There can be no assurance that any given well, or group of wells, will produce oil and gas at the rates which may have been inferred from past performances. However, new technology such as 3-D seismic has revolutionized the oil & gas industry and has significantly increased drilling success rates.
3-D Seismic To compare old 2-D images to the new 3-D seismic imaging is like comparing an x-ray to an MRI. X-rays are flat, 2-dimensional, and often fail to illustrate small suspicious areas as small as a golf ball. Conversely, an MRI is 3-dimensional, in color, and can identify irregularities as small as a grain of rice.
|
|
In the same regard, old 2-D technology (upper left) was difficult to interpret, even by the most skilled geoscientists. Entire fields were often overlooked while false interpretations often resulted in high risk and dry holes. Fortunately, the new 3-D seismic technology (upper right) has proven to be much more effective at revealing the hidden traps that contain oil and gas fields. The result has been a dramatic increase in drilling success rates.
With 3-D seismic imaging, scientists bounce sound waves into the earth and then construct models of underground rock formations. The 3-D seismic data is then reviewed by expert geologists, who determine the likelihood of oil and gas existing in any given area. If the geologists determine that the area is likely to contain hydrocarbons, they use the information gathered from the seismic data to predict/estimate how much oil or gas might be in the reservoir. Texas Energy Group uses these estimates to determine whether or not it is economically advantageous to drill a well.
 |
|
