MATAGORDA BAY, Calhoun County, Texas

This offshore block is located in Matagorda Bay, south of the Carancahua pass, in southeastern Calhoun County, Texas.
This prospect covers 2,240 acres (906.5 ha).

The main objective is the Nodosaria Blanpiedi sand section of the middle Frio (Oligocene). The secondary objectives are the Bolivina Mexicana & Nonion Struma (Melbourne sands) formations (middle Frio).

The proposed directional well will test the shallower Bol Mex and Melbourne E sections and deeper Nod. Blan. sand interval in a favorable structural position.

The Operator is STO Operating Company, subsidiary of South Texas Oil Company.

Operator: STO Operating Company
Acreage: 2,240 acres
Acquisition Year: 2008
Working Interest: 15% (20% BCP on the initial test well)
NRI: 10.92%
Main Objective: Nodosaria Blanpiedi formation (middle Frio, Oligocene)
Secondary Objectives: Bolivian Mexicana & Nonion Struma (Melbourne E sands) formations (middle Frio, Oligocene)

Number of wells: 1

Gross Estimated Gas Reserves: 96.9 bcf
Gross Estimated Condensate Reserves: 3,126 Mbbls