Pel-Tex Oil Company, LLC
520 Post Oak Blvd, Suite 475 , Houston, Texas, United States

Pel-Tex Oil Company, LLC has been successfully exploring the Gulf Coast for over 53 years with its main focus on deep gas exploration. Pel-Tex is a successful generator of large gas exploratory prospects both onshore and offshore in the Louisiana and Texas Gulf Coast region. Founded in 1959, the company has built a geologic base, combined with drilling experience has contributed to the foundation necessary to explore and understand the subsurface puzzles of the Gulf Coast.  Key management personnel work alongside a technical team within the Pel-Tex organization to achieve outstanding results. Pel-Tex has the experience and qualifications to identify and evaluate potentially attractive prospects, and to effectively control each project from initial mapping through drilling, production, and hydrocarbon sales. Longevity in the oil and gas industry and an established reputation have made Pel-Tex a major business partner with large leaseholders of major oil companies and large land holding companies.  Each prospect is closely coordinated among the disciplines of geology, geophysics, land, engineering and marketing in order to be successful in a very competitive industry.

The History of Pel-Tex Oil Company

Pel-Tex was founded in June 1959 by Earl P. Burke, Jr. After receiving a B.S. in Geology from Tulane University, he was employed by F.A. Callery Inc., an Oil and Gas Exploration Company owned by investment banking firm Lehman Brothers, headquartered in New York.  In 1980, Pel-Tex formed a co-venture with Transco Energy, Tesoro Petroleum, Freeport McMoran and other oil and gas operators. The resulting drilling program had an average yearly budget of $90 million. Pel-Tex has either operated or participated in excess of 600 wells throughout the Gulf Coast.  Pel-Tex has maintained pace with geophysical technology as new survey and processing techniques have become widely available. 2-D lines, once the mainstay of exploratory work, are still used to scope and roughly define a prospect. However, Pel-Tex now uses 3-D and AVO (Amplitude Vs. Offset) to do the detailed mapping, much on par with major oil companies. Pel-Tex has initiated multiple 3-D surveys in support of its prospecting activities during its history. It also uses gravity data in combination with its extensive subsurface studies together, to further enhance the (2-D & 3-D) seismic interpretations.

Commercial Engagement:

Pel-Tex maintains its focus in selected producing trends and continually expands and improves its regional geologic interpretation with new seismic data and the drilling results of other operators. It also tracks leasing and farmout activity closely to understand the direction of the investment community and the overall market climate. On behalf of Pel-Tex and its investors, this disciplined focus on certain trends allows profitable investments as follows:

• Producing properties with cash flow and upside potential are identified and acquired.

• Low risk development prospects are identified and are used to balance higher risk exploratory drilling.

• Large prospects, that fit Pel-Texs criteria, are generated, evaluated and inventoried. This inventory is ready when Pel-Texs partners are ready.

• Small prospects with greater risk or reduced scope are farmed out. This minimizes capital exposure.

• Opportunities to farm in prospects from large companies with existing infrastructure are aggressively pursued. Such opportunities yield extensive exposure to valuable seismic data and provide the possibility for immediate production.

Exploration and Areas of Interest

The non-pressured section of the Gulf Coast, both onshore and offshore, are entering into a mature stage of exploration, whereas the deeper and pressured section is just entering puberty. The pressured sections of the Gulf Coast and the deep shelf can be compared to the onshore non-pressured Gulf Coast of the 1950s.  The non-pressured shelf has been somewhat exploited with the "Bright Spot" technology. This technology has been very successful when used in developing producing properties. The offshore environment is well suited for the application of amplitude technology. Amplitude - AVO application in conjunction with 3-D confirmation is a big plus in reducing the risk. The onshore, because of surface interference, marshy terrain and reworked surface sediment, etc. (referred to as "weathering") causes multiple reflections and makes the seismic much more difficult to interpret, consequently higher risk. The undisturbed deposition in the offshore provides a much better environment for the application of the "Bright Spot". The 3-D technology is not the answer to all, but it is a great interpretative tool when it is understood and used in a very disciplined manner. With these technical tools and basic geology, applied in conjunction with 3-D structural control, the risk is somewhat lessened. This applies to wherever and whatever depth.  The ultra deep play in 6,000 of water and deeper is really mind-blowing. "I have been gathering data in this ultra deep play to enjoy, with much interest, the tremendous geologic and engineering data that is coming of age. These are large structures formed by salt diapers having Lower Miocene covering thin Oligocene and Eocene overlying the Cretaceous. This is analogous to what is going to happen onshore with the Mid to Lower Oligocene section over thin to non-existent Eocene on top of the Cretaceous. Pumpkin Ridge is a prime example. Pumpkin will be a trend opener.", said Pel-Tex founder, Earl Burke.  NOTE: Pumpkin Ridge is a prospect that Pel-Tex has recently put together. In 1980 Pel-Tex drilled a well to 21,500 at Pumpkin Ridge. This well got within 250 above the main objective being the Myogypsionides sand section which is approximately 1500 of gross sand section . This section produces 13 miles to the north of Pumpkin and will cum approximately 1 Trillion CFGE. ExxonMobil operates this field, namely South Chalkley Field, Cameron Parish, Louisiana.  Everything that we do today is subjected to rigorous economic analysis. Even the very large and environmentally hostile prospects that remain onshore are now becoming economically feasible. The super deep onshore compares in cost to the moderately deep prospects on the shelf. I believe both areas will eventually yield additionally more hydrocarbons than all that have been found and produced to date in the non-pressured onshore and offshore. To evaluate and explore any of these areas, whether non pressured or pressured, whether onshore, or offshore the above evaluation process is an absolute necessity. At Pel-Tex we have the database, expertise, experience, knowledge, geological and geophysical experience to achieve as high a degree of success as we have had in the past.