Skimmer Prospect

The Skimmer Prospect is a proposed 7,700-foot Miocene, four-objective test in the Pompano Field area, Brazos Block 446-L, in 55 feet of water. Skimmer is an untested fault block in the field, which was discovered by Shell in 1966 prior to the acquisition of the 3D seismic data that provides critical control for the Skimmer prospect. AnaTexas (Buccaneer Petroleum) has recently drilled and completed a new well in Pompano Field, the SL 103229 #1 in the southeast quarter of Block 446-L. The well has at least two productive Discorbis sands and is currently producing at over 7 million cubic feet of gas per day. The AnaTexas well is fault separated from and structurally low to the Skimmer fault block.

The combined potential reserves of the four targets at Skimmer are 1.13 to 1.35 BCF net to KEI. KEI will have 16.67% working interest in the project before casing point and 12.5% in the completion and all subsequent operations. KEI's proportionate estimated costs are US$33,740 for land, US$355,496 drilling and, if successful, US$208,375 for completion.