A Short History
South Bay Resources was formed by three veterans of the oil patch who are pursuing a technology-based exploitation strategy based on the marriage of old oil fields, oil's new economics and the application of state-of-the-art seismic modeling and computer-assisted analysis.
Scott Rubsamen, Steve Slack and Steve Tobias have a combined 90 + years of experience in the oil and gas industry in a variety of positions that cover all aspects of exploration, operations, finance and administrative responsibilities.
Initial operations began in June 2003 with the purchase of 150 square miles of non-proprietary 3D seismic data covering a segment of Matagorda County, just south of the greater Houston Metropolitan area, near Bay City, Texas. Matagorda Country is one of the most densely drilled counties in the United States and is hallmarked by stratigraphic and structural complexity. The Company drilled its first well in June of 2004 and since then has added twelve more producing wells.
The Company's business plan contemplated the identification of either geo-pressured or higher risk exploratory drilling prospects occurring in the normal course of investigating and analyzing 3D seismic data in such a complex area. One such prospect was successfully drilled and is currently producing over 8 MMcfe per day.
The founders of South Bay have contended that the successful application of their approach to an area as heavily analyzed and drilled as Matagorda County argues for an extension of the model to areas of similar characteristics that have yet to be as densely drilled and exploited. The success of the Matagorda program now calls for doing just that. To that end, South Bay has created and funded a Canadian entity, South Bay Resources Canada, Inc., to pursue an identical strategy north of the border. Operations began in early 2006, concentrating on shallow and intermediate gas and oil targets in Alberta. The Company has experienced a string of successes, with five discoveries out of the last eight wells drilled, and is planning an active drilling program for 2009.
