geophysicists who had interpreted the work. They reached an optimistic con- 

 clusion on the petroleum possibilities of the Arenoso Basin because the facts 

 and the hypotheses indicated that oil may have formed in the sediments within 

 the basin and accumulated in structural and stratigraphic traps. It seemed to 

 them that all of the factors required of an oil-producing area were present. 



After preparing a concise summary of the facts and recommendations, 

 Amprex's exploration group presented a formal review of these data to the 

 Board of Directors of the company. They recommended that the company 

 budget $5,450,000 toward a two-year program of detailed exploration, leasing, 

 and wildcatting in the search for oil and/or gas in the Arenoso Basin. The 

 Board approved this expenditure and the Exploration Department immediately 

 began organizing a program under this new budget. Figure 41-14 is a summary 

 of this budget revision, and Figure 41-15 shows the organization that was assign- 

 ed to this program. 



The tempo of exploration changed! The company had made a commit- 

 ment to spend a probable minimum of eight million dollars in the basin. 



The first action under this new program was taken by the Land Section 

 of the Exploration Department, whose primary duty was the acquisition of 

 acreage on the prospects or leads outlined by the geologists and geophysicists. 

 During the reconnaissance stage of exploration, many leads suggested that an 

 oil or gas field might be found by drilling in a certain area, had been developed. 

 A good lead was the fact that shows of oil and gas were noted in the Amprex 

 No. 1-C stratigraphic test. Many others had been found, including shallow 

 occurrences of oil, gas, and mineralized water in some seismic shot holes and in 

 water wells, although no actual surface indications of oil or gas, such as oil 

 seeps or gas seeps, had been located. Anomalous data noted on some of the 

 regional seismic profiles, such as reversal of dip, steep dips, or absences of re- 

 flections were also considered as leads, as were many gravity and magnetic 

 anomalies. Photogeologists, subsurface geologists, and the field geologists 

 submitted prospects for consideration. These leads were usually thoroughly 

 investigated by detailed geologic and geophysical methods. In active oil-pro- 

 ducing areas where competition is intense and the price of acquiring leases is 

 unusually high, Amprex would usually try to evaluate prospects or leads before 

 acquiring acreage. However, in the Arenoso Basin, leases could be acquired at 

 reasonable costs, because the area had long been considered unattractive. 

 Amprex realized that once it initiated a concentrated exploration program, and 

 particularly a drilling program, competitors, through their scouting organiza- 

 tions, would learn of such plans and begin an active leasing campaign. As a 

 result, Amprex decided to lease as completely as possible all of the leads or 

 prospects that were developed by the earlier exploration. Entire facies and 

 structural trends were partially covered through the acquisition of large lease 



841 



