Res A Performed By Gemini Solutions, Inc. May 2001

Res A  Tasks:  Create full field model  History match recorded production and pressures  Predict future production for current well

Res A Area Modeled

Res A 37 Top of Structure - Section Modeled

Res A 37 Gross Sand Thickness and Model Grid – aquifer excluded

Ternary Diagram - gas and water 8 Layer Model

History Match

 Assumptions:  Infinite high permeability aquifer down dip  Original oil in place adjusted up to 11.1 MMBO  Original Free Gas in Place = 12 BCF  Adjusted oil zone porosity from 30% to 35%

Vertical Fluid Movement Time Across and Cross Section Down – X direction, on strike

Vertical Fluid Movement Downdip to Updip – Y direction

Vertical Fluid Movement Through producing well – X direction, on strike

Vertical Fluid Movement Through Producing Well – Updip to Downdip

Contour Map Layer 1 – Gas Cap Oil movement into gas cap

Contour Map Layer 2 – Gas Cap Oil movement into gas cap

Contour Map Layer 3 – Oil Zone Water movement into oil zone

Contour Map Layer 4 – Oil Zone Water movement into oil zone

Contour Map Layer 5 – Oil Zone Water movement into oil zone

Contour Map Layer 6 – Oil Zone Water movement into oil zone

Contour Map Layer 7 – Oil Zone Water movement into oil zone

Res A 37 Predictive Run  Remaining oil reserves:  700 MMBO for 1000 psi flowing bottom hole abandonment

Res A 37 – Yearly Production

Res A 37  Conclusions  700 MMBO reserves 1000 psi flowing bottom hole abandonment  39% ultimate oil recovery factor with current well  Bypassed reserves may exist significant oil volume may have moved to the gas cap  Quick study possible < 2 man days

Res A 37  Recommendations:  Improve water/gas history match further  Explore additional wells to recover bypassed oil in gas cap  Explore possibility that oil in place is higher ( especially in southwest quadrant ) history match would still be possible gas and water match could be improved further new drilling location may be possible