El Maton, Texas
In April 2006 Maxim entered into a participation agreement with Bayshore Exploration LLC (“Bayshore”) of Katy, Texas, an arm’s-length private oil and gas company, to acquire a 15 percent working interest in the El Maton Field Prospect. In exchange, Maxim paid Bayshore the sum of $210,000 (US).
The El Maton Field Prospect consists of 234 acres located in Matagorda County, Texas. The El Maton Field was discovered in 1961 and has produced approximately 44 BCF of gas with condensate from 9 producing wells. The Frio section in the El Maton field consists of alternating sand and shale. Reservoir sand conditions are good with over 28% porosity and 200 milladarcys of permeability. The area production, good reservoir sand conditions, and high recovery rates gives this prospect excellent potential for production and reserves.
The El Maton Prospect is a structural ridge on the west flank of the El Maton Field. The rate of dip and structural high is defined by good subsurface well control. The well was drilled approximately 1,200 feet to the northeast of the successful Davis #1 Hickl Well at a cost of $1,400,000 (US). The location appears favourable to encounter the 9,200 feet McDonald Sand and other objectives high to the #1 Hickl Well.
The Operator, Howard Exploration L.L.C, spudded the Howard Expl-Hickl #1 exploration well on the El Maton Field Prospect in July 2006. The well reached its total targeted depth of 9,400 feet in August 2006. The well was logged and production casing has been run. The well encountered several setbacks due to heavy rains, which delayed access for testing. Attempts to date to flow the well have been unsuccessful and the partners, along with the operator, are in discussions on how they wish to proceed.
