Location
The Golden Eagle Project is situated in the northern part of the productive Paradox Basin, in the south-eastern part of Utah and encompasses both Federal and State leases with no underlying private or freehold ownership.
The project is located along the Paradox Fold and Fault Belt, and is on a structural trend with the Big Indian, Lisbon, Lightning Draw, Little Valley & Lisbon South Fields.
The field is well served by country roads and the principle target is less than four miles from a 26-inch gas transportation pipeline that services up to 12.5% of the US domestic gas market.
Acres
26,800
Formations
Ismay and Leadville formations
Primary Objective
Helium and natural Gas
Secondary Objective
Crude Oil
Concentrations
3% helium, 70% methane
Interest
70% working interest
Depths
4000 feet plus
Type of Traps
Structural and Stratigraphic
Structure
The Golden Eagle Prospect consists of a large Mississippian structure created by basement tectonics, together with a large Pennsylvanian structure. Significant folding, faults and fracturing has generated substantial gas accumulations.
Geology
Reservoirs
The Pennsylvanian section is expected to be similar in reservoir quality to that encountered in the giant Aneth field with a cumulative production in excess of 385 million barrels of oil and 343 Bcf of gas.
7% Helium Potential
Depths
The Golden Eagle is a composite structure with mapped structural closure occurring between the depths of 8,000 feet to over 15,000 feet that includes the primary Pennsylvanian and Mississippian prospective units.
Jurassic
The structural style changes within the Pennsylvanian section from a four-way closed anticline to an underlying fault closure in the Mississippian and early Pennsylvanian. Flattening of seismic reflectors near the top of the Jurassic indicates that an early structure was likely in place during Jurassic time.
Helium Potential
The location of the Golden Eagle Project is at an ideal Helium address and contains all the required elements for high productive potential
Ancient Volcanic Action in the La Sal Mountains nearby, is evident from plentiful lava residue throughout the acreage, giving potential for discovering Helium.
Uranium Deposits surround the acreage, with commercial Uranium extraction having been conducted for many decades. Current mining continues. Degradation of Uranium is one of the main sources of Helium.
Geological Opinion is that the migratory source of the Greater Cisco production comes from the Paradox Basin in the proximity of the Golden Eagle Project.
Natural Gas
The Project is a discovered gas field, with over 80 billion cubic feet of gas resources booked and has the potential for up to three trillion cubic feet of recoverable gas. Methane levels have tested above 80% with flow rates above 1000 Mscf per day.
Infrastructure
Infrastructure
Williams gas pipeline crosses the Golden Eagle Field
Major oil and gas hub located 50 miles away at Grand Junction
Bituminized sealed roads in close proximity
Heavy Haulage unsurfaced, well maintained roads to drill sites
Well pads established with installed well heads.
Rail Line in close proximity
Gas pipeline tap in point.
Williams Gas Pipeline Insert Point
Nearby Fields
The Golden Eagle project is geologically on trend with other helium producing fields.
Harley Dome Field
The Harley Dome Field (Cisco), located ten miles to the north, was designated a federal helium reserve in 1934 and has produced excellent volumes of oil and gas for many years.
More recently the Cisco field has been targeting and producing Helium gas.
Lisbon Field
The look-alike Lisbon Field is about 40 miles south-east. The Golden Eagle project is the only documented geologic structure in the Paradox Basin that is similar in terms of its structural style and size to the Lisbon Field.
To date, the Lisbon field has produced over 50 million barrels of oil and over 7.5 trillion cubic feet of gas. The field currently produces mainly Helium gas from the Mississippian level and has booked Helium reserves of approximately 750 million cubic feet
Development Wells
Golden Eagle Development Well PB#1
Paradox Basin #1
The well is scheduled for a 7,500-foot lateral line, the purpose is to encounter fracture zones that communicate with the Leadville formation that lies below the Ismay formation. The original Ismay perforations were tested for helium at 2.82% and methane at 76.23%
Paradox Basin #3
The well recently underwent recompletion operations and successfully passed its mechanical integrity test. The well subsequently demonstrated a noticeable increase in pressure from the Lower Ismay formation where it tested for methane above 80%.
PetroSun intends to rework the well to perforate and test a lower zone that contains a large natural fracture and which will conceivably produce commercial quantities of gas flows with higher concentrations of helium.
The Golden Eagle Gas Field currently has three shut-in natural gas wells with demonstrated and confirmed migratory pathways. Two of the wells are development wells and the third has been engineered as a production well.
To date the wells have tested for molecules in the Pennsylvanian Ismay formation. PetroSun intends to rework these wells to target the Leadville formations, similar to the Harley Dome Field which is productive for helium at approximately 7%.
Paradox Basin #2
This is a large bore wildcat well that requires a higher level of development. There is potential to side track and test deeper targets in the Mississippian Leadville formation.
Paradox Basin #4
This is a planned well, it does not exist yet.
Geological opinion is that the upper Pennsylvanian Beds in the Ismay Formation are highly stressed and fractured to the south east of PB#1.
The new horizontal well will traverse the upper Pennsylvanian Ismay formation structure with a continuous 1.5 mile exposure to the productive strata and fracture systems where helium has accumulated.
Program
Upon recompletion of existing wells, PetroSun plans to construct a processing plant on the leasehold to produce, process and distribute commercial grade helium and natural gas and fulfil existing helium offtake agreement with a global gas corporation.
Complete permitting process in order to rework existing shut in wells and drill a fourth well in a high-yielding helium zone.
Conduct and interpret Seismic to further define the Golden Eagle structure and permit additional well locations and submit APD's for future Wells.
Construct a plant to separate, purify and liquefy the helium and natural gas with fully contained waste water treatment, system, avoiding need for waste or mud pits.
Develop the delivery system to avoid the need for a pipelines in order to fulfill existing offtake agreements for helium and gas that have already been negotiated.