Green Springs Prospect
The Green Springs prospect is located in the northern extension of the hydrocarbon producing Railroad Valley basin within Twp 15 and Range 57. It is situated in a small Tertiary valley between the White Pine Range on the Eastern side and the Pancake Range on the Western side. Tetuán Resources holds the exploration rights to a 2,557 acre block which covers all of sections 19, 20, 29 and 30. The prospect is based on favorable indications from gravity, surface geochemical and satellite imagery anomalies. In the general area well control is very sparse and has a density of about one well per township. Two nearby wells within 15 miles however did confirm excellent Devonian reservoir rocks and at least one of these wells (Meridian No. 1) had abundant oil shows. Tri-Valley Corporation is planning to drill yet this year on their leases located three or four miles to the northwest of Green Springs.
Based on gravity data there is expected to be only approximately 2400 feet of Tertiary Valley fill sediments covering Paleozoic rocks which make up the primary target for this prospect and hence drilling depths will be relatively shallow and should be no more than 4500 feet or so for all Devonian targets (the Devonian Guilmette formation is the best producing reservoir in Nevada and should be present at this prospect as it is in outcrop on both sides of the valley).
The gravity data shows a strong positive residual high centered exactly over the Green Springs lease block and supports the presence of flanking faults to the northwest and southeast (see attachment #1). These faults could be important structural limits and lateral seals to hydrocarbon fill up and accumulation. Our current interpretation is that the Green Springs prospect is an anticlinal horst block trending NE/SW and plunging in both directions but centered on section 30, twp 15, rge 57. The satellite imagery also supports this interpretation as the prospect is coincident with a well defined surface and topographic high (see attachment #2). Interestingly the satellite imagery shows a prominent ENE/WSW lineament trending through the center of the prospect area and another more northeasterly trending lineament just to the south of the prospect. All of this of course supports the presence of a significant structural feature in the subsurface.
Surface geochemical data consisting of several dozen soil samples throughout the prospect area were analyzed for Eh, pH, and conductivity. Each method showed a well defined anomaly over the prospect area, an anomaly consistent with a commercial hydrocarbon accumulation in the subsurface.
In summary, the Green Springs prospect is a very anomalous feature with a well established petroleum system present (i.e. source rock, reservoir rock, structure, favorable geochemistry, and seals all documented in the area). Currently a gravity high, surface geochemistry survey, satellite imagery and a topographic feature all support the potential for the presence of a significant hydrocarbon accumulation in the subsurface.
The Green Springs prospect is approximately the same size as the 22 MMBO Grant Canyon Field located approximately 50 miles directly to the South in Railroad Valley and the same Devonian producing Guilmette Carbonate is targeted. A nearby access road, and shallow drill depths and high oil prices greatly enhance the economics of this project. A 7,000 bpd refinery working under capacity is located some 45 miles south of the prospect block.