By Jay Forte, Contributing Reporter
RIO DE JANEIRO, BRAZIL – Texas Energy Exploration is looking for investors to participate in the activities in the U.S., and have been speaking with Brazilians about doing business in Texas. At the end of March they will drill the Rancho-Cali 2 Well, and will continue on from there, attracting international attention.
Texas Energy Exploration’s Salvatore D’Alessandro tells The Rio Times “We are getting ready to drill our Rancho-Cali 2 Well at the end of the month. According to the Well Logs, this lease has 124,000 barrels of oil per acre and and we have seven more Well sites on this property. The Martin Lease, Weido, and Poranova Leases, which are adjacent to the Rancho Cali Lease has produced over two million Barrels to date.”
The company is a privately owned independent oil and gas operator licensed with the Railroad Commission of Texas. They currently hold leases throughout the Brookshire Salt Dome. Located approximately thirty-five miles west of Houston, the salt dome is part of the Gulf Coast Basin of Salt Domes, which are also home to the Spindletop, Raccoon Bend, and High Island Salt Domes, among others.
“Spindletop, circa 1902 Beaumont, Texas, was a salt dome that spewed 100,000 barrels of oil a day and it put companies like Texaco [now part of the Chevron Corporation], and Gulf Oil on the map,” says D’Alessandro of Spindletop, a Salt Dome which produced oil for over fifty years. “Basically when you are spewing 100,000 barrels a day, just think of the changes over the last 112 years in the lives of the people that discovered that.”
With oil exploration being all about location, the Brookshire Salt Dome is well positioned in the same formation as Spindletop. Texas Energy Exploration has the formation locations of the of the nose, the east flank, and the apex. “The companies adjacent to us on the apex of the location have already produced 2.4 million barrels,” says D’Alessandro.
Texas Energy Exploration needs accredited investors to help raise money to erect rigs to drill the bore into the salt dome. Also, according to D’Alessandro, the U.S. government also allows for tax write-offs for the investments in project like this, making the Brookshire Salt Dome a great tax shelter for accredited investors.
“It’s very risky don’t get me wrong,” says D’Alessandro. “We have all the geophysical maps, all the 3D seismic readings and the wells logs proving that the oil is there. We’re not wildcatters, we go by our data and because of the modern technology we are able to pinpoint where the oil is.”
Since 2007 many international oil companies were rushing into Brazil to get involved in the massive pre-salt oil discovered deep under the seabed, but high risks and costs, and ultimately low profit margins have sent many potential investors elsewhere. Since 2010 international players have slowly been pulling out and looking back to the U.S. for opportunities.
While many are currently exploring shale for new and existing oil through the extraction method of hydraulic fracturing, salt domes also remain some of the most prolific locations for hydrocarbon deposits. “Fracturing shale is the big in-fashion play right now. Everyone wants to go through shale to get all of the oil but the cost of fracturing shale is ten times the cost of exploring a salt dome,” says Texas Energy Exploration’s Salvatore D’Alessandro.
* This is an Advertorial for Texas Energy Exploration, LLC.