PEL-TEX OIL COMPANY, L.L.C.                                                  PEL-TEX®
        ~ Exploring the Gulf Coast for Over 53 Years ~

Exploration and Areas of Interest

The Gulf Coast Onshore and Offshore

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 1950's.

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.