The following is an artist’s representation of a cross-section of the earth, showing how wells penetrate formations to recover oil and gas. It shows proved underdeveloped (PUD) formations where the downdip wells prove that there is a presence of oil and gas. Exploitation of the PUD formations is our specialty.

In the example illustration, the ABC#1 (on the far right) was the first well drilled in 1961. Because it was not drilling updip (or higher) to production, it was considered an exploratory well; however, it is also considered an extremely successful well. In 1962, the ABC#2 well was drilled next. The operator had limited information and thought he was drilling a well with two PUD formations (this was based on the ABC #1’s success). Although the well was not successful, it helped to determine that gas was located within the three zones. The first of the two wells were drilled without the use of 3D seismic. Since ABC #1 was an exploratory well, it was most likely drilled based on regional geology, probably with a 2D seismic line or two. The ABC #2 was perhaps considered a PUD formation. Oil and gas gravitate to the highest position possible. This would have been a successful well, if it had not been for a fault separating the two wells (Fault Cut B). Nevertheless, when they drilled higher to the first well, and were ineffective in their efforts, further exploration to this immediate area was abandoned. A subsurface fault was suspected; however, they could not pin down the fault.

The story becomes very clear once a 3D seismic is shot in an productive area that is older. Our example demonstrates that we shot 3D seismic within the last few years. By using 3D seismic, we are able to see that Fault B is the trap for the production caught by ABC #1. It also provides a fault separation from ABC #1 (a very productive well) and the other wells. We also see that Fault C is the highest point and it traps the production we are planning to exploit. Because of ABC#2, we are aware that gas is within this fault block. The second well that was drilled was not commercial, but it did have gas shows. In our example, XYZ #1 well was drilled with 3 PUD formations and is considered a successful well within 3 zones. These scenarios are typical for the project U.S. Emerald energy seeks out.