!?

SUITE SZO, C. A. JOHNSON BLDG. • TABOR S-8193 • DENVER J COLORADO

ESTIMATE OF TOTAL, OIL IN P L A C E

WHITE ROCKS OIL PROPERTIES UINTAH COUNTY, UTAH

P r e p a r e d for Western. Indus tr i e s , Inc .

At the Reques t of Mr. W. J . Mason

P r e p a r e d by H. B . Sh ir ley

P r o j e c t Manager

Signed and Sea led c''~ C ' /--.----•/•'••

R e l e a s e d D e c e m b e r 9 , 1961

•» 18 E R 19 E R 21 E

L R N A L

R I W

LOCATION MAP

HITE ROCKS OIL PROPERTIES UINTAH COUNTY, UTAH

A C C E S S R O U T E S

® AREA of WHITE ROCKS OIL P R O P E R T I E S

WHITE ROCKS A R E A

• VERBAL ROOSEVELT

T f

1 U T A H

L.

INDEX

TABLE OF CONTENTS

FIGURES

Page No.

Introduction and Purpose of Report 1 Location and Access 3 Description of P roper t i e s 3 Regional Geology 5 Local Geology 6

Topography 6 Navajo Sandstone 7

Outcrops 7 Structure 8 Description of Sandstone 9

Evaluation Wells and Sampling P r o g r a m 10 Est imation of Reserves 14

Interpretat ion of Saturated Intervals 14 Interpretat ion of Core Analysis Resul ts 17 Determination of Net Oil Sand 20 Classification of Reserves 20 Calculation of Reservoi r Volume and Oil in Place 22

General Comments 23

F igure No.

Location Map (Coverpiece) 1 White Rocks Oil P roper t i e s 2 General ized Strat igraphic Column 3 Cross Section B - B' (Pocket) 4 Location and Basic Data Map (Pocket) 5 in te rpre ta t ive Map - Sandstone Limits and Faults (Pocket) 6 (^hkfC VyiC\J^bCtJ Cross Section A - A' 7

TABLES Table No.

Core Hole and Well Data Summary 1 Rock Volume and Reserves Es t imates 2 Saturation Distribution - Navajo Sandstone 3

APPENDIX - Well Data Sheets

INTRODUCTION AND PURPOSE OF REPORT

Western Industr ies , Inc. , is engaged in a project with the ultimate

objective of recovering petroleum products from the "heavy oil" or " t a r "

bearing Navajo sandstone formation which is found at or near the surface

on cer ta in proper t ies which they have acquired in Uintah County, Utah.

Work on this project has been ca r r i ed on under the name, White Rocks Oil

As conceived, the project will ultimately encompass a mining or

excavating operation, a crushing and screening phase , a diluent-hot water

extraction p rocess , and the n e c e s s a r y refining operations to produce an

optimum economically marke tab le product . Marketing of by-products

from the cleaned sand is another possible phase .

Although occur rences of " t a r " sands a re not uncommon, there

have been relatively few at tempts to p roces s the ma te r i a l s on a large

scale commercia l bas i s . Thus the White Rocks Oil project may be con­

s idered as "pioneering".

The purpose of this repor t is to provide an est imation of the total

volume or tonnage of hydrocarbon bearing sandstone in the White Rocks Oil

p rope r t i e s , and the total amount of pe t ro leum product contained in that

sandstone. Thus the objective is an est imation of the total "oil in p lace" .

The economics in the excavation, extract ion and marketing will have to

be known to establish whether all , or what portion, of thi6 oil in place

can be regarded as economically recoverab le .

The es t imate of oil r e s e r v e s is based on the resul ts of var ious geo­

logic studies and investigations and test drilling which had been made in

the a r e a . In addition considerable checking and additional investig;. ions

were conducted during the s u m m e r of 1961 in conjunction with a p r o g r a m

of core dri l l ing,

In this recent p rogram a total footage of 6, 074 feet was dri l led or

cored in eleven core holes distr ibuted a c r o s s the p roper t i e s . Core samples

from these holes were then descr ibed and analyzed for oil content and den­

sity. The r e s e r v e s es t imates a re p r imar i ly based on these r e s u l t s .

The following table summar i ze s the e s t i m a t e ! of total volume of

oil bearing Navajo sandstone and the corresponding volume of oil in place

The es t imated r e se rves a re classified as proved, probable and possible

depending on the degree of confidence in the i r existence as establ ished from

the present s tudies . Oil Bearing Western Industr ies

Navajo Sandstone Oil in Place Net Equity (cubic yards) (barreU) (82, 5%)

Proved Area

Federa l Lease 69,355,000 28.533,000 23 ,540,000 Merr iman Ranch 48,304.000 19,872,000 16.394,000 Orem Proper ty 20,935,000 8.613,000 7,106^000

Total Proved 138, 594,000 57,018,000 47, 040,000

Probable Area

Orem Proper ty 65, 745, COO 27,047,000 22,314,000

Possible Area

Federa l Lease 51 . 305. COO 21, 107,000 17.413,000

Total Proved, Probable and Possible 255. 644. COO 105, HZ, 000 86. 767, 000

LOCATION AND ACCESS

The White Rocks Oil p r o p e r t i e s unde r c o n s i d e r a t i o n lie in the

n o r t h w e s t po r t i on of Uintah County in n o r t h e a s t e r n Utah. The genr-r-al

loca t ion and the a c c e s s r o a d s to the p r o p e r t y a r e shown in F i g u r e 1 .

The p r o p e r t y is 2 1 . 5 mil^-s n o r t h w e s t of V e r n a l , Utah, the county

s e a t of Uintah, County or 30 5 m i l e s by r o a d . It is 18 m i l e s n o r t h e a s t of

Rooseve l t , Utah or 27 . 5 m i l e s by r o a d .

The r o u t e s a r e on b lack top road excep t the l a s t 7 ,5 m i l e s f r o m

Rooseve l t or 9- 5 m i l e s f r o m V e r n a l . T h e s e p o r t i o n s have g r a d e d and

g r a v e l l e d r o a d s .

T h e r e i s n o r a i l r o a d s e r v i n g the a r e a a t p r e s e n t . Suppl ies a r e

b rought into the r eg ion by t r u c k on U . S . Highway 40 . Salt Lake Ci ty ,

177 m i l e s by highway to the n o r t h w e s t , is the p r i n c i p a l supply po in t .

The a i r p o r t a t V e r n a l i s s e r v e d by F r o n t i e r A i r l i n e s a s we l l a s

c h a r t e r s e r v i c e s . The s m a l l a i r f i e ld s a t R o o s e v e l t and T r i d e l l wil l a c ­

c o m m o d a t e l ight a i r c r a f t .

DESCRIPTION O F P R O P E R T I E S

White Rocks Oil is r e p o r t e d by a r e p r e s e n t a t i v e of W e s t e r n I n ­

d u s t r i e s , I n c . , to own an 8 2 . 5 % net i n t e r e s t in the oil r igh t s on a t o t a l

of 1,600 a c r e s of l and in the a r e a of i n t e r e s t . As shown in F i g u r e 2,

440 a c r e s a r e on f e d e r a l l and , 840 a c r e s a r e on the M e r r i m a n r a n c h and

320 a c r e s a r e on the O r e m p r o p e r t y . In addi t ion to the 62 .5% i n t e r e s t

- 3 -

iGURE 2

R-l -W R- l -E

j

FEDERAL LEASE

^ 1

OREM PROPERTY

C\*HLUI&«. P^itU R\(^T5 TO T V * SttAPACe)

WHITE ROCKS OIL PROPERTIES

MERRIMAN RANCH

T2N, RIE AND RIW (USM)

UINTAH COUNTY. UTAH

in the oil r i g h t s . White Rocks Oil owns t h e s u r f a c e r i g h t s on the M e r r i m a n

r anch and the O r e m p r o p e r t y . The 440 a c r e t r a c t on f e d e r a l land i s unde r

a s t a n d a r d F e d e r a l Oil and Ga6 L e a s e .

To p r o v i d e full p r o t e c t i o n to the r i g h t s O" the f e d e r a l l a n d s , both

p l a c e r and lode c l a i m s a r e being l o c a t e d and f i led c o v e r i n g the a r e a o f

o c c u r r e n c e of the Navajo s a n d s t o n e ,

The p r o p e r t i e s a r e d e s c r i b e d a s fo l lows:

F e d e r a l L e a s e (Oil and Gas ) A c r e s

Township 2 N - R a n g e IE (USM) Sec t ion 17 W / 2 N E / 4 . E / 2 N W / 4 S W / 4 N W / 4 , S W / 4 360

Sect ion 18 S E / 4 N E / 4 . N E / 4 S E / 4 80

To ta l 440

M e r r i m a n Ranch

Townsh ip 2 N - R a n g e IE (USM) Sect ion 7 W / 2 S E / 4 80

Sect ion 1 8 W / 2 N E / 4 , E / 2 S W / 4 W / 2 S E / 4 , S E / 4 S E / 4 280

Sect ion 19 E / 2 N W / 4 . N E / 4 , E / 2 S W / 4 . S E / 4 480

To ta l 840

O r e m P r o p e r t y

Townsh ip 2 N - R a n g e IE (USM) Sect ion 18 W / 2 S W / 4 80

Sect ion 19 W / 2 N W / 4 . N W / 4 S W / 4 120

Townsh ip 2 N - R a n g e 1W (USM) Sect ion 24 E / 2 N E / 4 , N E / 4 S E / 4 120

T o t a l 320

The scope of th i s p r o j e c t did not inc lude a l e g a l r e v i e w of the s t a t u s

of the l e a s e s or the o w n e r s h i p of the p r o p e r t i e s . T h e out l ine of the p r o p e r

t i e s c o n s i d e r e d w a s fu rn i shed by Wes te rn I n d u s t r i e s , I nc .

- 4 -

REGIONAL GEOLOGY

The White Rocks Oil p r o p e r t i e s a r e l oca t ed on the n o r t h f lank of

the Uinta B a s i n in the s o u t h e r n p o r t i o n of the Uinta M o u n t a i n s .

The Uinta B a s i n i s a t o p o g r a p h i c , s t r u c t u r a l and s e d i m e n t a r y b a s i n ,

I t m e a s u r e s a p p r o x i m a t e l y 130 m i l e s e a s t to w e s t and 110 m i l e s n o r t h to

sou th . I t is l i m i t e d on the n o r t h by the Uinta M o u n t a i n s , the w e s t by the

Wasa t ch Moun ta ins , on the e a s t by the Douglas C r e e k A r c h and on the

south by the e s c a r p m e n t of the Book Cli f fs .

F r o m the c o r e of the Uinta Mounta ins to the sou th , a s e r i e s of

south dipping beds f r o m P r e - C a m b r i a n t o C r e t a c e o u s age a r e found. T h e s e

beds a r e uncon fo rmab ly o v e r l a i n b y T e r t i a r y and Q u a t e r n a r y 6 e d i m e n t s .

In g e n e r a l , the P r e - T e r t i a r y beds dip 15 d e g r e e s to 20 d e g r e e s to the

south excep t w h e r e l o c a l l y in f luenced by faul t ing or fo ld ing .

T e r t i a r y and Q u a t e r n a r y beds f o r m a n o b s c u r i n g m a n t l e o v e r m o s t

of the south f lank of the Uin ta Mounta ins excep t w h e r e the o l d e r beds a r e

exposed in the v a r i o u s canyons and s t r e a m s .

T h e p r o p e r t i e s unde r c o n s i d e r a t i o n a r e l o c a t e d n e a r t h e sou th end

of the W h i t e r o c k s R i v e r Canyon in which r o c k s f r o m P r e - C a m b r i a n to

J u r a s s i c age a r e e x p o s e d . F i g u r e 3 shows the g e n e r a l s t r a t i g r a p h i c

s ec t i on of the P r e - T e r t i a r y s e d i m e n t s of the a r e a .

In the v ic in i ty of the White Rocks Oil p r o p e r t i e s a s m a l l , sou th

plunging an t i c l i na l nose in the P r e - T e r t i a r y s e d i m e n t s i s the b a s i c

> -n

X)

c C/7

171

cr>

o a> o o

3

Jurassic (S)

NAlA.'O SANDSTONE (936)

J U r c

Upper

ClKMEL ENTRALA Fm (510) Ss (168)

1 5 Sic

Jura 5

CURT"! Fm.(l48)

s/C

MOSRlSCN Fm. (893)

Cretaceous

Upf. DAKOTA

Ss. (261)

-

'er Creta ceous

VAN COS SHALE

Jo >

'0

Upper

Me

mb

er

SYSTEM

SERIES

FORMATION

r —

•

• •

ME

MB

ER

Co >• ton i Serous

Pennsy/vanian

MORGAN f,n (1378)

tfc P*

WEBER SANDSTONE (IIZO)

Permian

PARK CITY Fm. 134/1

Triassic

Lower Triassic

M0ENK0PI Fm. I mo)

Upper Triassic

SHINARUVP Cq 1931 1

CHINLE Fm. (260J

c 7

> 2. o o c 7 H

f~

-< X

T

-H rn

O O * U)

> 7* -< O 2

CD m «£.-

m J3 > r-

M m i i

en —I j . i L> —1 — •XI

u X o o o

Pre-Cambrian

UINTA Ml Gr.

Cambrian (?)

(1840+)

Carboniferous

Mississipp/on < Pennsylvanion

M/SS/SS/PPIA/V LIMESTONE - UNDIFF, (1214)

BLACK Sh.(279)

MORGAN FORMATION -1 (2Q/! 1 ->-••- ' "in* 1 •' —

L o

we

r

Me

mb

er

*5

s t ruc tura l feature . These older sediments exhibit dips to the south and

south-southeast of 45 to 85 degrees under the influence of this nose . Fau l t ­

ing associated with this anticlinal nose has been recognized from surface

and subsurface geological studies as well as r-^rial photo s tudies .

LOCAL GEOLOGY

TOPOGRAPHY

The White Rocks Oil p roper t ies a re located near the lower end of

the Whiterocks Canyon. In this location the main floor of the canyon is

approximately 3,800 feet wide, This feature and the general topography

a re shown in Figure 4. The Whiterocks River, draining approximately

north to south cuts ac ross the proper ty as shown in Figure 5, has cut a

wide channel into the main floor of the canyon which floods in periods of

heavy runoff.

Near the center of the Navajo sandstone deposit, the r iver and

flood plain elevations a re between 6, 960 feet and 6, 975 feet. The main

canyon floor r i ses gently from 7, 040 feet to 7, 140 feet to the east and

to 7, 070 feet to the west .

The east canyon wall r i s e s abruptly 500 feet. There is then a

continued but more gradual r i se to the eas t . Near the center of Section 17-

T2N-R1E (USM), there is another abrupt r i s e going up to Mo6by Mountain.

The west canyon wall r i s e s rapidly 300 feet. To the west there is

a s e r i e s of hills and valleys with elevations near 7,400 feet,

- 6 -

In a north-south direction ac ros s the Merr iman ranch, the main

canyon floor and the Whiterocks River show a steady fall to the south of

250 feet per mi le .

NAVAJO SANDSTONE

Outcrops

The Navajo sandstone outcrops on both canyon wal ls . These out­

crop a r e a s a re shown in Figures 4 and 5. In the outcrops the sandstones

weather to a light grey to grey color . However, freshly broken surfaces

show dark brown to black oil staining and ca r ry a strong oil odor.

No active or fossil seepages were observed on the east outcrop.

The west outcrop, however, has various a reas where small pools of

very heavy black oil accumulate , especial ly in the s u m m e r . These a r e

par t i cu la r ly noticeable near the bases of the juniper and pinon pines grow­

ing on the face. Apparently these seepages occur where the roots have

f rac tured the sandstones. Some of the Ter t ia ry mantle covering port ions

of this west wall is thoroughly impregnated with the heavy oil .

In the past oil from these seepages has been utilized by r anche r s

in the a r e a as caulking and roofing m a t e r i a l . At one t ime the Cedar

Buttes Oil Company at tempted mining for the t a r product . A short shaft

was cut into the wail of the west outcrop. Oil still seeps into this shaft,

and the floor is coated with a thin layer of t a r ,

- 7 -

Structure

The Navajo sandstone c ro s se s the White Rocks Oil proper t ies in a

N 60° E to S 60° W direct ion. This can b--. seen in Figure 6. a map of the

sandstone l imi t s . There is considerable cross-bedding in the formation,

and in the co res , dips from 40 to 90 degrees were observed. The average

dip from core observations and outcrop measu remen t s was 68 degrees.

From subsurface data and projections, and outcrop measurements the

true formation thickness has been placed at 935 feet. Across a level

surface this would give an outcrop exposure of approximately 1,010 feet.

This is portrayed in Figure 7.

In the "Geologic Report on the Merriman Ranch, " by Robert E.

Covington, a northwest to southeast trending fault through the southwest

quarter of Section 17-T2N-R1E (USM) was outlined. The author suggested

that this faulting could possibly control and limit the oil accumulation.

The current field studies and studies of aerial photos suggested

the existence of the multiple fault pattern shown in Figure 6. The existence

of two of these faults was verified by the core drilling program. Further­

more, oil saturation was found to the east of the easternmost fault, and

thus it is interpreted that the faults do not limit the oil accumulation.

In Core Hole Charlie it is interpreted that the fault designated (2)

on Figure 6 was cut. At a drilling depth of 695 feet or 7, 000 feet MSL,

the well went from saturated Navajo sandstone into blue green, brown and

reddish brown mudstones indicative of the lower portion of the Chinle

Format ion , As in terpre ted, this fault has considerable s t r ike slip, the

formations to the southwest of the fault being displaced in a northwest

direction.

No displacement is shown for faults (1) and (3). Their position

was established from aer ia l photos. Fur the r drilling would be requi red

to verify these faults and establ ish the nature of the displacement .

Fault (4) was es tabl ished from field and aer ia l photo s tudies . As

shown in Figure 4, it is in te rpre ted that this faulting resul ted in some

displacement of the lowermost saturat ion levels between Core Holes Easy

and John.

The limiting fault (5) shown on the west edge of the Orem p r o p e r ­

ty was placed from data presented in the "Geologic Report on the

Merr iman Ranch" p repared by Robert E. Covington.

Description of Sandstone

The Navajo sandstone is a c ross -bedded predominantly f ine­

grained white sandstone with a grain size range from silt to medium

gra ins . In the saturated por t ions , it exhibits grey to black and brown

color from the contained oil .

A variety of degree of cementation is noted. The sandstone

grades from a hard well-consolidated to predominantly medium hard

semi-consolidated to consolidated sandstone. Some un-consolidated m a t e ­

r ial was noted where the heavy hydrocarbon was apparently the only cement ­

ing agent.

In j : e n e r a l the s a n d s t o n e s a r e n o n - c a l c a r e o u s or only v e r y

slightly s o , A s m a l l p e r c e n t a g e g r a d e to v e r y c a l c a r e o u s and iu c e r t a i n

zai.es the m a t e r i a l i s r e g a r d e d a s sandy l i m e s t o n e .

S c a t t e r e d zones with abundan t f r a c t u r i n g w e r e noted th roughou t

thi c o r e s of the Navajo s a n d s t o n e . No p a r t i c u l a r p a t t e r n of f r a c t u r i n g

WE^ s e e n , the f r a c t u r e s a t t i m e s p a r a l l e l i n g the bedding and a t t i m e s

cutting d i r e c t l y a c r o s s the bedd ing .

EVALUATION WELLS AND SAMPLING PROGRAM

P r i o r t o the c u r r e n t eva lua t i on p r o g r a m , s ix t e s t h o l e s h a d b e e n

d n l i e d into the Navajo s a n d s t o n e on the sub j ec t p r o p e r t i e s . T h e s e a r e

named; the W h i t e r o c k s No. 1 , t he M e r r i m a n Ranch No. 1 F e e , the

Mison N o . 1, the Mason No ; 2 , the Fu l ton No , 1 W h i t e r o c k s and the

Fulton N o . 2 W h i t e r o c k s . The l o c a t i o n s a r e shown in F i g u r e 5 , and the

avai lable da ta a r e inc luded under the w e l l n a m e in the Append ix .

A to t a l of 11 t e s t w e l l s w e r e d r i l l e d in the c u r r e n t p r o g r a m .

These l oca t i ons a r e shown in F i g u r e 5 and c o m p l e t e da ta s h e e t s on e a c h

well a r e inc luded in the Append ix . In a l l , a t o t a l of 6, 074 feet of s e c t i o n

was d r i l l e d and c o r e d for th i s e v a l u a t i o n .

I n g e n e r a l , the c o r e ho les w e r e l o c a t e d a c r o s s the l eng th and

b read th of the depos i t wi th the p r i n c i p a l o b j e c t i v e s of i nves t i ga t i ng the

upper and l o w e r l im i t s of s a t u r a t i o n as w e l l as the m a g n i t u d e of s a t ­

u r a t i o n . The d i s t r i b u t i o n of the w e l l s in a n o r t h e a s t to s o u t h w e s t d i r e c t i o n

- 1 0 -

prov ided a r e a l c o v e r a g e a?ong the s t r i k e c f the d e p o s i t . The h o l e s w e r '

a l s o spaced in a n o r t h w e s t to s o u t h e a s t s e n s e to g ive c v e r a g e of the e n t i r e

s t r a t i g r a p h i c interval .

In the ear ly programming , attention w a s c o n c e n t r a t e d on the

M e r r i m a n r a n c h and that p o r t i o n of the F e d e r a l L e a s e to the s o u t h w e s t of

the ind ica ted fault ing through Sec t ion 1 7 - T 2 N - R 1 E (USM). Later with the

addition of the Orem property , the p r o g r a m was expanded to include Core

Holes Harry and King. Veri f icat ion of faulting in Core Hole Charl ie fo l ­

lowed by proof of saturation northeast of the one fault zone in Core Hole

Easy, led to the expansion of the p r o g r a m to include Core Hole John.

Weather, the p r e s s of t ime and antic ipated dri l l ing diff icult ies with

the available r igs prevented expanding the p r o g r a m into the undri l led p o r ­

t ions of the property to the northeast and southwest .

All of the core ho les had the p r i m a r y object ive of determining the

upper and lower l eve l s of saturation and the magnitude and distribution of

saturation in the Navajo sandstone . T h e s e re su l t s are s u m m a r i z e d in

Table 1.

The following s u m m a r i z e s the r e s u l t s for those core ho l e s with

other objective or those f rom which other s ignif icant re su l t s w e r e obtained

- 1 1 -

Core Hole Addra Objectrv^s Spec ia l R e s u l t s

Able

B a k e r

C h a r l i e

E a s y

G e o r g e

shal low Determinat ion 01 w a t e r - b e a r i n g r o r i s ax trte Tertiary-Guater=s.:rT s e d i m e n t s .

Pene t ra t ion of s t r x r ^ r a p h i c bottom of the N~ava;o s-indstone (Navajo-Chir.le c c - t i c r .

Determinat ion c: r - ^ s : -- shal low w a t e r - b e a r i n g i c~e t — tne T e r t i a r y - Q u a t e r r . i r y sed iments

Pene t ra t ion of the s t r i i i g r a p h i c top of the Nava;o sir:£5:one (Carmel -Nava jo c a r t i c t ) ,

1. To d e t e r m i n e if oil s a tu r a t i ons continued in the Niva;o s a n d ­s tone to the n o r t h e i i t of an i n t e r p r e t e d fault rone through Section 17-T2N-R13: IU5M).

1. De t e rmina t i on of poss ib le sha l low w a t e r - b e a r i n g xones in the TeTt i a ry -Qua te r t i a rv s e d i m e n t s .

2. P e n e t r a t i o n of the s t r a t i g r a p h i c top of the Navajo sandstone ( C a r m e l - N a v a j o contact) .

1 . W a t e r - b e a r i n g s a n d 55 i e e t to 61 f e e t .

2 . N a v a j o - C h i n l e c o n t a c t not p e n e t r a t e d at 388 feet T. D.

1. W a t e r - b e a r i n g s a n d 8 0 - 1 2 1 £:. C o m p l e t e d as wa te r we l l with p u m p s e t at 95 ft . C a s i n g to 106 ft.

2 . P e n e t r a t e d t o p of C a r m e l f o r m a t i o n a t 121 f ee t . Did not r e a c h Navajo s a n d s t o n e a t 300 fee t T . D . {Dr i l l ing r ig unab le t o d r i l l f u r t h e r due to s lough ing f o r m a t i o n . )

1. At a dep th of 695 fee t (7000 fee t M S L ) t h e w e l l i s i n t e r p r e t e d to have p e n e t r a t e d a fau l t and p a s s e d f r o m oi l s a t u r a t e d Navajo s a n d s t o n e into the l o w e r poTtion of the Chin le f o r m a t i o n .

1 . Oil s a t u r a t i o n n o r t h e a s t of the one fau l t zone was v e r i f i e d .

W a t e r - b e a r i n g s a n d 82 feet to 110 f e e t .

I t i s i n t e r p r e t e d tha t t he ho le wen t f r o m T e r t i a r y -Q u a t e r n a r y s e d i m e n t s d i r e c t l y in to the Nava jo s a n d s t o n e a t 1 1 3 f e e t . This i s i n t e r p r e t e d to be a t o r v e r y c l o s e to the s t r a t i g r a p h i c t op of the f o r m a t i o n .

Core Hole Added Objec t ives S p ° " i a l R e s u l t s

I tem

John

P o s s i b l e p e n e t r a t i o n into the Chinle f o r m a t i o n for c o r r e l a ­tion wi th Chinle s e d i m e n t s found in C o r e Hole C h a r l i e .

Eva lua t i on of amoun t of no r th -south offset r e s u l t i n g f r o m fau l t ­ing i n d i c a t e d or ve r i f i ed in Sec t ion 1 7 - T Z N - R 1 E . The Nava jo -Ch in l e

con tac t could have been e n c o u n t e r e d a t r e l a t i v e l y sha l low dep ths depend­ing on ' t he m a g n i t u d e of fau l t ing .

H a r r y 1= Due to the d r i l l i n g p r o b ­l e m s th i s ho le w a s a b a n ­doned at a depth of 87 feet-. S ince a gas show was n o t e d a t th i s dep th , i t i s i n t e r ­p r e t e d tha t at 87 feet the wel l w a s a t o r v e r y n e a r the top of the Navajo s a n d s t o n e .

1 . Chin le f o r m a t i o n not r e a c h e d . Hole abandoned due to m e c h a n i c a l d i f f i ­cu l t i e s wi th co r ing r i g .

1 . N a v a j o - C h i n l e con tac t not p e n e t r a t e d a t 856 fee t T..D. F a u l t i n g m a g n i t u d e thus l e s s than e x p e c t e d .

2 . Well i s i n t e r p r e t e d to fal l n o r t h e a s t of the e a s t e r n ­m o s t i n d i c a t e d and i n t e r ­p r e t e d f au l t . Thu9 the i n t e r p r e t a t i o n of c o n t i n u ­ance of s a t u r a t i o n in the Navajo s a n d s t o n e to the n o r t h e a s t i s b e l i e v e d r e a s o n a b l e .

In the e a r l y w e l l s i t w a s a t t e m p t e d to c o r e the e n t i r e s e c t i o n of

Navajo s a n d s t o n e . Subsequen t ly , a m i x e d p r o g r a m of d r i l l i n g and co r ing

was p e r m i t t e d . In the Navajo s ands tone a to ta l of 4, 121 feet w e r e c o r e d .

The 3, 399. 5 fee t of c o r e r e c o v e r e d r e p r e s e n t s 8 1 p e r c e n t r e c o v e r y ef­

f i c iency .

All c o r e s w e r e d e s c r i b e d , p l a c e d i n p l a s t i c bags and a r e now s t o r e d

on the White Rocks Oil p r o p e r t i e s . At t en - foo t i n t e r v a l s , a s m a l l f o u r - i n c h

to s i x - i n c h s a m p l e of c o r e w a s t aken and p l a c e d in a s p e c i a l b a g .

- 1 3 -

CORK HOLE AND WELL DATA SUMMARY WHITE ROCKS OIL

UINTAH COUNTY, UTAH

Core Hole

Able

Raker

Cli.irlic

Do;.

Easy

Fox

Georgo

Harry

Horn

Jolm

King

Total

Mcrr iman Ranch FOP N O . 1

Elevat ion

7, Ml

7 , 0 8 2

7 , 6 9 5

7. 646

7 , 7 8 0

6 , 9 6 9

7 , 0 8 7

7 , 0 5 5

7, 156

7, L25

7 , 0 8 5

7 , 0 5 9 7 , 0 6 4

CJD

KB

T ° P Jr.

72' (7069)

Not Reached

96' (7599)

70" (7568)

62' (7718)

14' (6955)

113' (6974)

87' ( 6 9 6 8 ? )

0' (7156)

133' (7692)

1 4 ' ( 7 0 7 2 )

54' (7010)

L o w e r m o s t Saturation

304 (6637)

695 (7000)

729 (6917)

843 (6937)

397 (6572) -

451 (6636)

2127 (6944)

750 (7075)

685 (6400)

600 (6464)

Total Depth

38fl (6753)

300 (G7U2)

779 (6916)

815 (6831)

870 (6910)

532 (6437)

575 (6512)

256 (6900)

856 (6969)

703 (6382)

- 952 (6112)

Total Saturated

Interval

23!)'

59V

65V

781'

38i ' i

33d'

1 il

2 l i j '

617'

67ij'

4 , 4 8 8 '

5 4 i '

Net Oil Saturated Sandstone

1 9 8 . 5

5 9 4 . 0

614

648

333

297

172

602

611

4 , 0 6 9 . 5

Weighted Avp,, Oil Saturation

(ga l lons per ton)

1 1. 2

5. 7

8 . 4

t . 0

1 0 . 6 6

10. 24

4 . 6

12. 5

11 .63

1 9. 34

Ar i thmet i c A v e r a g e Oil Saturat ion

(gal lons pc r ton)

10. 8

5 .7

7 . 7

7 . 4

9 . 0

9 . 8

4 . 5

12. 3

1 2 . 0

9^2

% Net Oil Sand ir Saturated b i t e r v n l

85. 6

99. 2

')•'•-. 3

83. 0

86.9

87. 9

8 1 . 1

9 7 . 6

90. 9

90. 7

Fulton Whilerocks U 7, 335 DF 450' (6885) 960 (6375) 2,407 (5928) 51(1'

rn\ ustntu nr A*UJ J r

After the comple t ion of Core Hole Able , a g r o u p of 13 of t h e s e

s p e c i a l s a m p l e s was s e l e c t e d and sen t to the Spec ia l C o r e A n a l y s i s

L a b o r a t o r y of C o r e L a b o r a t o r i e s , Inc , , fo r s a t u r a t i o n d e t e r m i n a t i o n s .

Th i s s e l e c t i o n w a s m a d e to d e t e r m i n e s a t u r a t i o n s t h r o u g h a r ange of

s a m p l e s tha t f r o m m e g a s c o p i c and m i c r o s c o p i c e x a m i n a t i o n w e r e i n ­

t e r p r e t e d to have vary ing s a t u r a t i o n s ,

The final r e s u l t s i nd i ca t ed that v i sua l d e t e r m i n a t i o n s of oil

s a t u r a t i o n s w e r e not c o m p l e t e l y r e l i a b l e . M a t e r i a l which a p p e a r e d t o

have high s a t u r a t i o n s s o m e t i m e s fell into the i n t e r m e d i a t e c l a s s and

s o m e o f the p o o r e r a p p e a r i n g s a n d s t o n e s had r e l a t i v e l y high s a t u r a t i o n s .

L i m i t e d i n v e s t i g a t i o n s i nd i ca t ed tha t the s a t u r a t i o n m a g n i t u d e v a r i e d

c l o s e l y wi th p o r o s i t y .

Fo l lowing this p r e l i m i n a r y i n v e s t i g a t i o n , a p r o g r a m of ana lyz ing

the s p e c i a l s a m p l e s f r o m a p p r o x i m a t e l y e v e r y 20 feet w a s fo l lowed.

Dev i a t i ons f r o m th i s p r o g r a m r e s u l t e d when c o r e m a t e r i a l was not r e ­

c o v e r e d o r the m a t e r i a l t h r o u g h the d e s i r e d i n t e r v a l w a s badly b r o k e n .

In o t h e r i n t e r v a l s w h e r e v i s u a l e x a m i n a t i o n showed the s a n d s to be whi te

o r l ight g r e y and devoid of s a t u r a t i o n , the i n t e r v a l w a s r e g a r d e d as having

z e r o s a t u r a t i o n , and n o s a m p l e s w e r e a n a l y z e d .

ESTIMATION O F RESERVES

I N T E R P R E T A T I O N O F SATURATED INTERVALS

Oil s a t u r a t i o n w a s e n c o u n t e r e d in al l of the c o r e h o l e s at t he top of

the Navajo s a n d s t o n e . In C o r e Hole E a s y the u p p e r m o s t 48 fee t of Navajo

- 1 4 -

sands tone conta ined low oil s a t u r a t i o n s , and this i n t e r v a l f r o m 62 feet to

110 feet is not inc luded in the e s t i m a t i o n of net oil s a n d .

The tops of the Navajo sands tone as wel l as il.c l o w e r m o s t s a t u r ­

at ion l e v e l s , to ta l s a t u r a t e d i n t e r v a l s and net oil sand f i g u r e s a r e shown

in Table 1. The d i s t r i b u t i o n ar.d v a r i a n c e of the s a t u r a t i o n l e v e l s can be

s e e n in F i g u r e 5 and in the two c r o s s s e c t i o n s .

As no ted t h e r e is c o n s i d e r a b l e v a r i a n c e in the l eve l of l o w e r m o s t

s a t u r a t i o n . This i s p a r t i c u l a r l y n o t i c e a b l e on the F e d e r a l L e a s e . T h r e e

p r i n c i p a l f a c to r s a r e be l i eved to effect this v a r i a n c e . T h e s e a r e faul t ing ,

l i thology, and pos t a c c u m u l a t i o n t i l t ing of the f o r m a t i o n .

In n o r m a l oil a c c u m u l a t i o n s the leve l o f l o w e r m o s t s a t u r a t i o n c o r ­

r e s p o n d s to the o i l - w a t e r contac t , the s e p a r a t i o n having t a k e n p l a c e o v e r

a p e r i o d of geo log ic t i m e under g r a v i t y in f luence . U n l e s s in f luenced by

o t h e r f o r c e s , th i s o i l - w a t e r contac t i s a leve l s u r f a c e .

As i s no ted a c r o s s the O r e m l e a s e , the s a t u r a t i o n l e v e l s in C o r e

Hole King and the Fu l ton Whi t e rocks No . 2 wel l v a r y by only 7 f ee t . This

s ec t i on is t h e r e f o r e i n t e r p r e t e d to be u n d i s t u r b e d and is r e p r e s e n t i n g a

s i m p l e o i l - w a t e r c o n t a c t .

In Core Hole F o x the l o w e r m o s t s a t u r a t i o n l eve l i s 172 feet h igh

to that in C o r e Hole King . I t i s p o s s i b l e tha t s o m e fau l t ing e x i s t s be tween

the se two ho les and would account for a po r t ion of the d i f f e r e n c e . H o w e v e r ,

in C o r e Hole Fox the i n t e r v a l below 397 feet c o n s i s t s of c a l c a r e o u s s a n d s t o n e s

- 1 5 -

and limestones that are relatively impermeable and during the original

migration and accumulation of oil did not have the capacity to function as

an oil r e se rvo i r . Thus, in the a rea of Core Hole Fox the lithology is an

important factor in the variance of saturat ion l eve l s .

Figure 7 shows a difference in saturat ion level of 198 feet between

Core Holes George and Able. A portion of this difference can possibly be

attr ibuted to lithology since some calcareous sandstone is noted below 307

feet in Core Hole Able, However, it is believed that post accumulation

tilting is responsible for most of this difference.

Here it is interpreted that in the past the oil had accumulated in

the sandstone, and under normal influences an approximately level contact

was establ ished. Through erosion and evaporation the l ighter fract ions of

oil were lost, and an immobile product s imi l a r to the present oil s a t u r ­

ation was left. Subsequent movement in the Uinta Mountains resu l ted In

increased tilting of the Navajo sandstone to the south. The previously

level o i l -water contact was also tilted and, the oil being immobile, this

tilted contact was maintained. Should this interpretat ion be co r rec t ,

there would be a general tilt of this contact to the south ac ross the deposit ,

at least near the faulted por t ions .

In Core Holes Dog, Easy and John, the saturat ion levels a r e at

6, 900 feet MSL or higher. This compares with an average saturat ion level

ac ross the canyon floor of approximately 6, 600 feet MSL. In the Be th ree

-16-E A p - u U M n U ? JR A". D ASSOCIATES | ••: C

wells on the east plateau, the sandstones above and below the contact

appeared pe rmeab le . Thus, lithology does not control the l eve l s .

With the indicated and verified faulting, it seems most probable

that faulting is the controlling phenomena. It is in terpre ted that the

faults are down-thrown to the southwest and that the faulting took place

after the oil had accumulated and possibly became immobi le . Thus, the

saturat ion levels would be displaced ac ross the faults . In the maps and

c ross sections no attempt is made to por t ray the offset of in te rpre ted

faults (1) and (3). In the case of faults (Z) and (4) where direct evidence

of faulting was encountered, the offset is por t rayed .

Most probably additional faulting will be encountered at or nea r

the east canyon wall . This would be expected to contribute to the dropping

of the contact level to that found ac ros s the canyon floor.

INTERPRETATION OF CORE ANALYSIS RESULTS

Samples from a total of 190 sample points from the core holes

were analyzed by Core Labora to r i e s , Inc. The original sample extract ions

were made by a solvent p r o c e s s using soxhlet e x t r a c t o r s . La te r a r e t o r t

sys tem of extraction was adopted utilizing a coking cor rec t ion that had been

developed by Core Labora to r i e s , Inc . , in working with s imi l a r sandstones

from the Athabasca and other a r e a s .

As a check on the r e to r t sys tem approximately 10 percent of the

samples analyzed were double checked using soxhlet extract ion The

-17-

check saturations thus determined averaged approximately 10 percent

higher than those determined by the retort method.

In the course of the investigation a l imited number of s a m p l e s w e r e

sent to another laboratory and saturation determinations w e r e m a d e . As

noted below some rather large discrepancies were found.

Saturation Saturation (Core Laboratories) (Other Laboratory)

Core Hole

Able Able Charlie

Depth

142 248 275

(ga ls . / ton)

10.3 12.1

2 . 7

Depth

138 - 143 252 - 262 260 - 280

(gals . / ton*

25 .3 24.2 19.9

T h e s e d i screpanc ies w e r e brought to the attention of Core L a b o r ­

atories and they rechecked all data and ran some veri f icat ion t e s t s on

the saturations by checking gas , oil and water saturation against p o r o s i t y .

All data was verif ied within anticipated l i m i t s .

As a further check one group of five samples from Core Hole John

were broken and one-half of each sample sent to Core Labora tor i e s , Inc. ,

and the other one-half sent to Chemical and Geological Laborator ie s in

Casper, Wyoming. These resu l t s are shown below.

Core Hole John Saturations - Ga l lons /Ton

Depth Core Laborator ies , Inc. Chemical and Geolog ica l Labs .

8.7 6.59

1 0 . 7 7 1 5 . 5 0 16.69

Average 1173 11 .7

460 500 530 670 720

8 . 4 6 . 2

10.5 12 .4 19 .1

18 r c- n o - r v f ' '

Since var iances in e i ther direction are noted and with the averages

being neaily equal these check samples are regarded as verifying,

Thus with the weight of supporting evidence, it is believed that the

analyses presented by Core Labora to r ies , Inc . , a re reasonable and r e p r e ­

sentative of the t rue oil sa tura t ion .

Water saturat ion and density determinat ions were obtained on the

majority of the samples . The full analysis repor t for each well is included

with the well data sheets in the Appendix.

As shown in Table 1 an ar i thmet ic and a weighted average oil

saturation were calculated for each well . The total of all sample, points

showed an ar i thmet ic average of 9.2 gallons per ton of sa tu ra ted sandstone

and a weighted average of 9. 3 gallons per ton of sa tura ted sandstone.

Since analyses were obtained at twenty-foot or g r e a t e r intervals

and since certain sections were unsampled through.non-recovery of core

or through the interval having been dri l led the weighted average figures

a re believed to be the more represen ta t ive . In this calculation an analys is

value was in terpre ted to c a r r y over intervals of sandstone of s imi l a r

description. In the case of unsampled intervals the average value from

the two closest adjacent samples was applied,

Density measu remen t s of the raw sample were made at 177 sample

points. These range from densit ies of 2.02 to 2.46 with the average

density being 2, 20.

-19-F A P X U V L . : >r> •-"• i^-_~

This density corresponds to a weight of 3, 707 pounds per cubic

yard or 10 85 tons per cubic yard,

DETERMINATION OF NET OIL SAND

A total of 4,488 feet of sa turated section was penetrated during the

recent coring p rogram. Of this , 4, 069 feet or 90, 7 percent a r e in te rpre ted

as being net oil sand,

Net oil sand has been considered as any sandstone containing oil

in significant amounts . A very low saturat ion of two gallons per ton was

a rb i t r a r i l y selected as the lower limit of saturat ion for this de terminat ion .

In examining the co re s , any sandstones which had no visible s a t u r a -

ation or only r a r e visible saturat ion were not considered as sa tu ra ted . In

a few cases the core analyses showed low saturat ions and the in tervals

represented in these cases were likewise considered as unsatura ted .

Dril led sections or sections of non-recovery of core were i n t e r ­

preted from observations of the sand and water re turns from the well and

also on the nature of mate r ia l adjacent to the missing in terval .

CLASSIFICATION OF RESERVES

Three r e se rves classifications have been utilized in es t imat ing

the total oil in place. These a re proved, probable and possible r e s e r v e s

and a re based on the relat ive degree of confidence in the exis tence of the

classified r e s e r v e s .

In the process of accumulation of oil, the oil tends to occupy all

available pore space in a closed or sealed r e se rvo i r above a level oil

- 2 0 -

water contact. This level is determined by the amount of oi l , the p r e s ­

sure it develops and the hydrostat ic p r e s s u r e s in the r e s e r v o i r . Thus in

oil accumulat ions in re lat ive ly homogeneous r e s e r v o i r rocks , a continuity

of saturation in sandstones above the o i l - w a t e r contact is a safe a s sumpt ion .

In mos t mining operat ions , such continuity of minera l izat ion is not

present . Therefore , evaluation of mining r e s e r v e s requires much m o r e

detailed sampling than in an oil accumulat ion. P r a c t i c e s m o r e common to

oil industry evaluation have been used in the current r e s e r v e s c la s s i f i ca t i on .

With the distribution of core holes a c r o s s the proper t i e s and the

verif icat ion of oil saturations in the outcrops all of the net oil sand volume

above the interpreted and verif ied lowermost saturation l eve l s and lying

between a point 660 feet northeast of Core Hole E a s y and 660 feet southwest

of Core Hole King are c lass i f i ed as proved . The 660-foot figure is based on

the considerat ion that a test hole wi l l verify the ex i s t ence of oi l on a for ty -

acre tract . This proved area is indicated in F i g u r e s 4 and 6.

The indicated re servo ir volume between the w e s t e r n proved l imi t

and the poss ib l e fault immediate ly wes t of the Fulton Whiterocks No. 1

and No. 2 w e l l s is c lass i f i ed as probable as shown in F igures 4 and 6.

Here , although continuity of saturation was ver i f ied by dri l l ing at e i ther

end of the area , questions exist as to the continuance of the o i l - w a t e r contact

l eve l , the amount of overburden mater ia l present and the width of the f o r ­

mation on the west end.

The interpreted r e se rvo i r volume between the eas te rn proved

limit and the east boundary of the Federa l Oil and Gas Lease is c l a s s i ­

fied as possible . This is noted on Figure 6. Here , there is no ver i f i ­

cation of oil saturat ion in the sandstones . There a r e , however, no

s t ructural complications indicated from surface studies or aer ia l photo

studies. Thus a continuity of saturat ion is in terpre ted .

One questionable feature is the sharp r i se in elevation near the

center of Section 17-T2N-R1E (USM). If this r epresen t s thickening in the

Ter t i a ry-Quate rnary sediments , the overburden removal could be a

problem.

CALCULATION OF RESERVOIR VOLUME AND OIL IN PLACE

F rom the interpretat ion of total thickness of sa turated Navajo

sandstone shown in Figure 4, the data from the core holes, and the

r e se rvo i r l imits shown in Figure 6, the gross volume of sandstone with­

in the saturated interval of the proved and probable a reas was computed,

In addition the amount of overburden mater ia l lying directly above the

sandstone was calculated.

In the case of the possible r e se rves the indicated length and

breadth of sandstone was taken from the interpretat ion of Figure 6. The

thickness of the g ros s sa tura ted interval in terpre ted at the ea s t e rn proved

limit as shown in Figure 4 was utilized to complete the g ross volume

calculation. In calculating the possible overburden, an average ove rbur ­

den thickness of 300 feet was es t imated.

- 22 -

Since i t w a s known that only 90. 7 p e r c e n t of the to ta l s a t u r a t e d

i n t e r v a l w a s c o n s i d e r e d a s ne t oil sand, the g r o s s s ands t one v o l u m e

f i g u r e s w e r e r e d u c e d by 9. 3 p e r c e n t to a r r i v e at the vo lume of net oil

s a t u r a t e d s a n d s t o n e .

F r o m the c o r e a n a l y s i s d e t e r m i n a t i o n s , a we igh ted a v e r a g e oil

s a t u r a t i o n of 9 . 34 ga l lons p e r ton has been c o m p u t e d . T h i s , c o n s i d e r i n g

the a v e r a g e d e n s i t y of the m a t e r i a l r e p r e s e n t s 17. 28 ga l lons p e r cubic

y a r d o r . 4 1 1 4 b a r r e l s p e r cubic y a r d . The tota l oil i n p l ace i s then c a l c u ­

l a t ed by a s i m p l e m u l t i p l i c a t i o n of the net vo lume of s a t u r a t e d s a n d s t o n e

by the a v e r a g e oil s a t u r a t i o n .

T a b l e 2 s u m m a r i z e s the r e s u l t s of al l of the v o l u m e t r i c and oil

in p l a c e c a l c u l a t i o n s . A g r a n d to ta l of 105, 172, 000 b a r r e l s of oil in p l a c e

i s i n d i c a t e d for a l l r e s e r v e s c l a s s i f i c a t i o n s . Of th is 5 7 , 0 1 8 , 0 0 0 b a r r e l s

a r e c l a s s i f i e d a s p r o v e n , 27, 047 , 000 b a r r e l s a s p r o b a b l e and 2 1 , 107, 000

a s p o s s i b l e .

W e s t e r n I n d u s t r i e s , I nc . , in c o n s i d e r a t i o n of i t 82 . 5 p e r c e n t net

i n t e r e s t in the oil r i g h t s , thus h a s 47, 040, 000 b a r r e l s of p r o v e n , 22 , 314, 000

b a r r e l s of p r o b a b l e and 17, 413 , 000 b a r r e l s of p o s s i b l e oil r e s e r v e s or a

to ta l of 86 , 767, 000 b a r r e l s of to ta l oil r e s e r v e s .

G E N E R A L COMMENTS

As m e n t i o n e d p r e v i o u s l y , the c u r r e n t e s t i m a t i o n o f r e s e r v e s

r e p r e s e n t s the oil in p l a c e . T h i s would s ay that i f the g r o s s v o l u m e of

- 2 3 -

P r o v e n

ROCK V O L U M E AND R E S E R V E S E S T I M A T E S NAVAJO SANDSTONE

WHITE RUCKS OIL P R O P E R T I E S UINTAH COUNTY, UTAH

V / C S I D V I I

Indu*; t He s, Inc . To t a l Nava jo S a n d s t o n e T o t a l Rock V o l u m e He-t i > | U i i u

O v e r b u r d e n To L o w e r m o s t S a t u r a t i o n V o lume S a t u r a t e d Nava jo S a n d s t o n e A v e r a g e Oil S a t u r a t i o n O i l i n P l a c e O i l i n P l a c e (cu . y d s . ) ( cu . y d s . ) ( cu . y d s . ) ( cu . y d s . ) p,al, yd. T bb l s i yd . J ( b a r r e l s ) ( B a r r e l ? . )

7 6 , 4 6 6 , 060 53 , 2 . .7 .000 2 3 , OU. 000

152, 805 , 000

84, 150, 000 60 , 3 4 3 , 0 0 0 24 , 3 2 3 | 0 0 0

168, 816,1 000

09 , 3 5 5 , 0 0 0 4 8 , 3 0 4 , 0 0 0 2 0 . 935 , 000

13C, 5 9 4 , 0 0 0

17. 213 17 .2 : ; 1 7 . 2 S

1 7 . 2 b

. 4 1 1 4

. 4 1 1 4

. 4 1 1 4

. 4114

20 , 533 , 000 19, 672, 000

8, 613, OUO

57, 018 , 000

2 3 , TTIO, 0 J0

! b. .191, 0.1.) 7, l oo , -j;>d

•17, 040, '• '0

F e d e r a l L e a s e 7 , 684, 000 M o r r i m a n Ranch 7 , 0 8 6 , 0 0 0 O r e m L e a s e 1 ,211 , 000

To ta l P r o v e d 16, 0 1 1 , OUO

P r o b a b l e ;|

O i c i n L e a s e 2 8 , 6 8 8 , 0 0 0 7 2 , 4 8 6 . 0 0 0 101, 1741(000 6 5 , 7 4 5 , 0 0 0 17 .28 . 4 1 1 4 2 7 , 0 4 7 . 0 0 0 22 , > I ! , )•).'

i! Tota l P r o v e d i) and Prohablc 4 ! , 699, 000 225,291.000 269, 990,i000 . 20^, 339,000 17.20 .4114 8-1, 065, 000 6'.', 354, Qj)

Possible I

F e d e r a l L e a s e 26 , 936, OuJ 5 0 , 5 6 6 , 0 0 0 83 ,502 i !o00 5 1 . 3 0 5 , 0 0 0 , 1 7 . 2 8 . 4 1 1 4 2 1 , 1 0 7 , 0 0 0 1 7 , 4 1 3 , 0 0 0

T o t n l P r o v e d , ,' P r o v a b l e . P o s s i . l e 7 1 , 6 3 5 , 0 0 0 2 0 1 , 8 5 7 , 0 0 0 353, 492' 000 255 , 6 4 4 , 0 0 0 17 .28 . 4 1 1 4 105, 1 7 2 , 0 0 0 _b6_, 7_6_7, J_0

MPII*. I" ANIl

r

sandstone in the saturated interval ac ross the subject proper t ies was

mined and p rocessed with 100 percent efficiency that 105, 172, 000 b a r ­

re ls of oil would be produced.

In most mining ventures , it is found that there is a lower l imit to

the grade of ore that can be mined and processed economically. De te r ­

mination of this optimum limit is made by studies of mining, moving, and

process ing costs balanced against the cost of bypassing low grade ore or

mining the ma te r i a l and t ransport ing it to a dump pile or stockpile for

possible future process ing .

The minera l content of the economically processab le ore is then

regarded as recoverable r e s e r v e s . This current repor t is not intended

to evaluate these r e s e r v e s .

F r o m the l imited exploratory data secured, Table 3 has been

p repa red to show in a pre l iminary manner the saturat ion distr ibution by

s a m p l e s . As an example of the application, if it were determined that

it was not economically feasible to p rocess sandstones with sa tura t ions

of 5.0 gallons per ton or l e s s , this chart would show that the low grade

o r e r ep resen ted by 23. 7 percent of the samples would be bypassed or

sent to waste p i l e s .

Thus , the current repor t should be regarded as a f i rs t , but

most important , step in the overal l evaluation of the White Rocks Oil

p ro jec t . It is believed that the presence and location of a major

-24-

Table 3

SATURATIC NAVAJO

Saturation Range

(ga ls . / ton)

C O - 2.0 2 . 1 - 3.0 3. 1- 4 .0 4. 1- 5.0 5. 1- 6.0 6. 1- 7.0 7. 1- 8.0 8. 1- 9 .0 9. 1-10.0

10. 1-11.0 11. 1-12.0 12 .1-13 .0 13 .1-14 .0 14 .1-15 .0 15 .1-16 .0 16 .1-17 .0 17. 1-18.0 18 .1-19 .0 19 .1-20 .0 20 .1 -21 .0 21 . 1-22.0 22. 1-25.0 25. 1-26.0

Freq

9 12 9

15 13 17 13 11 16 12 9

12 6 7 6 7 4 4 4 1 1 0 2

Based on 190

•N DISTRIBUTION SANDSTONE

Cumulative Percentages

cent of Total 0 to 2b 26 to 0

4 . 7 6 .3 4 . 7 8 . 0 6 .8 9 . 0 6 .8 5 .8 8 . 4 6 .3 4 . 7 6 .3 3 . 2 3 . 7 3 .2 3 . 7 2 . 1 2. 1 2 . 1 0 .5 0 . 5 0 . 0 1 . 1

4 . 7 11 .0 15 .7 2 3 . 7 3 0 . 5 3 9 . 5 4 6 . 3 52 . 1 6 0 . 5 6 6 . 8 7 1 . 5 7 7 . 8 8 1 . 0 8 4 . 7 8 7 . 9 9 1 . 6 9 3 . 7 9 5 . 8 9 7 . 9 9 8 . 4

9 8 . 9 9 8 . 9

100 .0

100 .0 95 . 3 8 9 . 0 8 4 . 3 7 6 . 3 6 9 . 5 6 0 . 5 5 3 . 7 4 7 . 9 3 9 . 5 3 3 . 2 2 8 . 5 2 2 . 2 19 .0 15 .3 12. 1 8 . 4 6 . 3 4 . 2 2 . 1 1.6 1. 1 1 . 1

ample Points

J ^ A V D A S S O C I A T E S I V . "

accumulation of oil has been es tabl ished. Only through subsequent

studies of the economics of the ent i re project can it be determined if

this large oil r e s e r v e can be mined, p roces sed and marke ted in a

profitable manner .

-25

FIGURE

o < UJ v>

«r -3

-I tn 2

ELEVATION ABOVE MEAN SEA L E V E L

O O

O o o

o o 00 u?

o o 10 u>

o o <3-lO

o o OJ (£>

CONTACT t L . 7467

CORE HOLE DOS '

EL. 7646'' '•• ' u

t • »•«•-•«»."'• »N° * « o e , * T , \ ' •**•. i

CORE HOLE DOd '

EL. 7646*'

1 } ( \ ' •

. I.V

• - ' * " - • I

• : • * . . '

CORE HOLE :::.% EASY

EL;77fcOf

CROSS SEC

WHITE R ; STRIKE

HORIZONTAL 8

l O C U T C t , i»C.

:, CORE HOLE

>3JVS\< EASY Jh';̂ *'-:'•'''• EL-.'7760 •••=-;.*;'.f-..v,; *.;. ,•- '• :

B'

' • - '- -- '̂ -

/ f

SATURATION LEVEL F ^ i - M -

CORE HOLE JOHN.

r-LOrfERMOST SATURATION

T.O. «70* .^ 16910} ' ., .

». - "T.

vr . ' r -

>-:T

- j 'r;

> ^. UJ I

7 80S

• "i:'.-->':".vV"-'.'

74CO*>

7200

I v r

• >

o

< ;

CO ' .—•" 7000*

v

i -

CROSS SECTION B — B*

^ WHITE ROCKS OIL f ^ S T R I K E SECTION

HORIZONTAL 8 VERTICAL SCALE;

- - • - Waoo1 * ;

r

UJ

UJ > o CD

< > UJ - J UJ

:.68bb*-

6600*

6400

» • . - • ' " • ; - "

—7-6200*

, t

>—:60 00'

""-"CoiTz. S;CL'H. -i

; ; £L:77^pV-- ' ; CORE HOLE

••:•' F O X . ^ • L v ^ -

•*v-E L . 6 9 6 9 '

" • • ' ' " - : " - ' » . ' T * ' " ••' ' • ' . . » " - . • • " •'."•.- V * " ' . - " - • • ' • ' ' " ' • . " • ' ^ • ' • • ' " • i : ' 1 : - " . '•'• " " - ' . ' "

-: -V. t : ^ " " ; ^ ^ " 1 ^ " * *o**a .1 APPRO x) ;-<-

- ' - • A - '

r-•

MER

E

— 7 4 0 0 -

r 7200-

WH1TER0CKS RIVER

TOP J« I** (6955)

_ / _ . ^ 3 9 7 *

LOWERMOST SATURATION

1 5 5 7 2 )

6800 —

6600'—

- - ^ - - ^ - ' / •

I T. 0 . 5 3 2

t 6 4 3 7 ) 1—6460'—"

6 2 0 0 - ^

^

6000 —

CORE HOLE

£ :; FOX.

EXHIBIT I I I

MERRIMAN. RANCH, FEE NO.'? 4

ELL7059'Gd. 7064* K.B.;

? i W i ;>}- ••'-.••>••

IPPROX)

•x

n 6 0 * E (APPROX.)

— 7400 —

•—7200—

LOWERVCST SATURATION

397 \5572)"

-t~->-s2.A l'L "v T. 0 .532

U437)

_ 6 4 0 0 ' — LOWERMOST SATURATION

600* ( S 4 U I

6200-—

t . 0. 952 i"UJI2.»

6000'—

EXHIBIT I I I

IAN. RANCH,

EE NO.'I €

7059*6(1.

7064* K.B.;

V . ( 1 6 0 ° E ( A P P R O X . )

CQ«1T

' • IU; '

ATURATlON L E V E L . PROJECTEO FROM CORE MOLE ABLE AND GEORGE.

LOWERMOST SATURATION

600* ( 6 4 1 4 )

0. 9 3 1 * ' 7 7 ^ 1 SATURATCO NAVAJO SANDSTONE