Assessment of Unconventional Gas Resource in Texas,oDispersed Gas Project GRI Contract No. 5080-321-0398 August- October

The assessment of various gas resources in Texas, including geopressured sandstones, co-production of gas and water, hydropressured sandstones, undiscovered gas, and wet gas-bearing shale, provides valuable insight into the potential reserves and recovery factors for each resource category. Here's a summary of the key findings:

1. Geopressured Sandstones:

• In-place solution gas is estimated to be 690 trillion cubic feet (Tcf) with a recoverable gas of 28 Tcf, representing about 4% of the in-place solution gas.
• Distribution of the resource is tabulated by formation, subdivision, and major fault zones.

1. Co-production, Gas, and Water:

• This assessment considers non-associated natural gas in onshore and offshore Texas, with recoverable unconventional free gas calculated based on original gas-in-place, proven gas reserves, cumulative primary gas production, and recovery factors.

1. Hydropressured Sandstones (or Aquifers):

• In-place solution gas data are provided for various areas in Texas, assuming a 3% recovery factor.

1. Undiscovered Gas:

• Data from various sources are used to estimate undiscovered gas reserves, assuming a recovery factor of 10% of the original gas-in-place.

1. Wet Gas-Bearing Shale:

• Estimated recoverable gas in onshore and offshore Texas is 2.7 Tcf, representing about 10% of the recoverable solution gas estimated for geopressured sandstones.

1. Probability Factors:

• Probability factors are used to assess the reliability and accuracy of the data used in the assessment, providing insights into the confidence levels associated with the estimated reserves.

Overall, the assessment provides valuable information for understanding the potential gas resources in Texas and the factors influencing their recoverability.