The Crestone Project
The Crestone Prospect is a large, closed
anticline located immediately up dip from mature source rocks
of the Mancos Shale interpreted to be present in the Crestone
sub-basin. The Crestone structure, covering 14,570 acres,
is defined by five, 2D seismic lines and gravity data. Well
data from the Raton Basin to the east and the San Juan Sag
to the west indicate that excellent reservoir characteristics
can be expected to be present in the Dakota Sandstone, the
primary reservoir target for the Crestone Prospect. Regionally,
porosity in the Dakota ranges from 15% to 21% over intervals
that are 50 to 120 ft thick. Based on the size of the Crestone
structure and the anticipated reservoir quality of the Dakota
sandstone, the potential of the prospect is promising. |
Click on image to enlarge |
| |
|
Lexam completed the licensing,
reprocessing and interpretation of a 2D seismic line that
crosses the Crestone Prospect and the deep part of the Crestone
sub-basin in a roughly north-south direction in 2002. Seismic
line CF-8402 was acquired by Chevron in 1984. The application
of modern seismic processing techniques has resulted in significant
improvements to the data.
An excellent correlation exists
between the character of the seismic response from the interpreted
Cretaceous section observed on seismic line CF-8402 and the
character of published seismic data from known Cretaceous
rocks in the Raton basin and the San Juan Sag. High amplitude
seismic traces in the Tertiary Santa Fe Formation, located
along the crest of the Crestone structure, are interpreted
as bright spots caused by the presence of natural gas in
unconsolidated, basin-fill sediments. These indications of
gas in the Tertiary section create additional exploration
targets, thereby increasing the exploration potential of
the prospect. |
| |
|
Additional analysis of the seismic data shows that the anticlinal
structure that constitutes the Crestone Prospect developed
during the early stages of the basin's history. As a result,
the Crestone structural trap was present at the same time that
petroleum source rocks of the Mancos Shale were being buried
and began generating oil and gas.
As part of a recent exploration program, an additional 60 miles
of 2D seismic data were acquired by Lexam’s former joint-venture
partner during the first quarter of 2004. This data has recently
been integrated with approximately 60 miles of seismic data
Lexam has acquired over its oil and gas property beginning
in 1994. The program is designed toprovide additional information
on the Crestone structure and identify |
Click on image to enlarge
|
| potential well locations
for the purpose of testing the Lexam property by drilling. |
Lexam's San Luis Basin oil and gas project contains
all of the ingredients necessary to make this an attractive,
frontier exploration play. A discovery on the Crestone Prospect
would turn Lexam's 100,000-acre land position into a strategic
asset capable of adding substantially to the oil and gas reserves
of participating companies. |
