Historically, salt domes have been the primary target of oil and gas exploration in the Texas and Louisiana Gulf Coast. In South Louisiana, the 89 piercement salt dome fields discovered since 1901 have produced 6,492,462,685 barrels of oil and condensate. This amount represents approximately 60% of all oil and condensate produced in South Louisiana.

Because of the tremendous volume of oil already extracted, there may be doubt about finding significant reserves on these features in the future. However, a current review of Jennings Salt Dome, the first Louisiana oil field, suggests that South Louisiana piercement domes still have large undiscovered reserves.

Jennings Dome, which has produced continuously since its discovery in 1901, has produced, as of 1985, 115 million barrels of oil and condensate. It's long and active exploration history is representative of many piercement domes in South Louisiana. A combination of characteristics explain why Jennings, as well as other domes, continue to be the focus of major exploration efforts. Piercement salt domes are generally complex both stratigraphically and structurally because of their geologic origin. Prolific high angle faulting coupled with depositional unconformities and rapid stratigraphic changes make it difficult to determine accurately the precise nature and extent of existing hydrocarbon traps. Additionally, the occurrence of multiple sand reservoirs and outstanding recovery rates of oil in place result in areally small reservoirs which contain substantial reserves.

End_of_Record - Last_Page 6---------------