Snipe Prospect

The Snipe prospect is a Miocene Rob L and Rob C test in 40 feet of water in Texas state waters. It is a high-side fault closure adjacent to Brazos Block 386-S Field, which produced 46 BCF from the Rob L and was discovered by Mobil in 1972. The proposed well will test a Rob L amplitude/AVO anomaly on an upthrown fault closure on the east flank of the abandoned field. The prospective area is above the original gas/water contact of the field and the well should encounter the Rob L structurally higher than any other well in the field.

The 9,480 foot well will be drilled directionally from a central location so that both targets can be encountered in optimal positions. Sandpiper, a proved undeveloped (PUD) location in the main Rob L reservoir, will also be drilled from the Snipe location and will share production facilities. The potential reserves of the two targets are .87 to 1.61 BCF net to KEI. KEI will have 16.7% working interest in the project before casing point of the first well, 12.5% in the completion and all subsequent operations on the block, including the Sandpiper well. KEI's proportionate estimated costs are US$88,280 for land, US$477,596 drilling and, if successful, US$332,375 for completion.