Texas

Texas

The Jeems, O’Benco, and Stephenson acreage is all situated within Harrison County in the historic East Texas Oil Field. In 1928, with the discovery of oil, Harrison County, became part of the East Texas Oil Field boom. The East Texas Oil Field is the second largest oil field in the United States, junior only to Alaska. Since the 1930’s, the vast East Texas Oil Field has produced over 5.2 billion barrels of oil and Harrison County alone has produced over 90 million barrels of oil. The geological formations within Harrison County that produce oil range from very shallow sandstone formations around 2,400’ in depth down to deep shale formations around 13,000’ in depth.

The primary productive geologic unit is the Cretaceous-age Woodbine Formation, a regional petroleum-bearing unit which had been known since the early part of the 20th century. The sandstone was deposited during a period when East Texas was a shallow sea, approximately 100 million years ago. During a subsequent period it was uplifted, eroded, and then covered again by the sea, which at that time deposited a layer of impermeable chalk, creating a stratigraphic trap – a situation where oil, which is lighter than water and migrates upwards, reaches a point where it can move no farther, and pools. The source rock for the oil in East Texas is the lower-lying Eagle Ford Shale.

Great Northern Energy, Inc. (“Great Northern”) is a Texas corporation, which is headed by CEO Robert Harrell, a career long Mobil Oil executive. Great Northern Energy, Inc. has relationships established with well operating and drilling companies in East Texas and Western Louisiana, which are managed by Great Northern from its nearby Dallas, Texas headquarters. An aggressive developmental drilling and reworking schedule is being undertaken, which will realize 12-15 new additional limestone formation oil wells on Great Northern acreage.

Great Northern Energy controls over 4,400 acres of mineral leases in the historic East Texas oil field near the town of Waskom, Texas, located just east of Shreveport, Louisiana. Great Northern is also in the process of acquiring an additional 7,600 acres adjacent to its current holdings. Although the Great Northern acreage currently maintains shallow legacy oil wells producing daily, more importantly, the overall acreage maintains over 200 identified new commercial drilling locations. As above, and historically, the wells within Harrison County have produced over 90 million barrels of oil, many of which produced during a time when the price of oil per barrel was very low. Current prices of oil coupled with advances in technology, have made historic fields like East Texas, a very attractive prospect for legacy well reworks and infield drilling. Infield drilling has many advantages, but the main advantage is the knowledge that oil is already present beneath the surface where the new wells will be drilled.

The new well locations currently being drilled are part of an overall augmentation and development of Great Northern’s holdings in the area, in partnership with Rangeford Resources who will maintain the largest single external working partnership holding within the Great Northern projects.