An Overview

South Bay Resources, LLC is a technology-driven oil and gas exploration and production company headquartered in Houston, Texas with operations in Matagorda County, Texas and Alberta, Canada.

South Bay sponsors project-oriented partnerships that are focused on relatively small geographic areas where both maintenance rate of return opportunities and enhanced return possibilities exist. At present, South Bay sponsors two such partnerships: South Bay Resource Partners, LP which focuses exclusively on a 150 square mile 3D shoot in Matagorda County, Texas; and South Bay Resources Canada, LP which focuses on opportunities in Alberta, Canada.

The exploration group combines leading edge analytical tools such as reprocessing and AVO/LMR inversion to efficiently mine a comprehensive database of digitized logs, well production histories, and 3D seismic data. Meticulous application of such techniques allows South Bay to identify previously overlooked hydrocarbon-rich targets that are similar to drilled successes yet remain undiscovered due to their geologic subtlety.

As a matter of preference, South Bay generates, drills, and operates nearly all of its properties. The company’s partnerships are presently producing from ten wells in Texas and four wells in Alberta

Recent activity in Alberta has been concentrated in two areas: Radway, located 20 miles northeast of Edmonton; and Mikwan-Huxley, located 90 miles south of Edmonton and north of Calgary. Geologic targets include both Devonian and Cretaceous opportunities ranging from 700 to 2,200 meters. South Bay has generated and drilled fourteen prospects resulting in eight successes. In Radway, five wells have been completed. Two are currently producing gas and three are awaiting hook-up. In Mikwan-Huxley, where South Bay is pursuing both Devonian reef and shallower Cretaceous gas targets, three wells have been completed. Two are currently producing oil and one gas well is awaiting hook-up. The exploration group has identified an additional twenty drilling opportunities in these two areas and continues to prospect aggressively.

South Bay is actively seeking opportunities to expand its activities in Canada through either acquisition of existing production or joint ventures with companies that have established operations in Alberta. The ideal opportunity would allow South Bay to leverage its strength in applying leading edge analytical techniques to areas of known hydrocarbon production.