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The heavy-oil reservoirs are concentrated in the Jackson Group, Cole sandstone, whereas medium-oil reservoirs are concentrated in the Government Wells, Lorna Novia, and Mirando sandstones within the same area. The medium oil resource is larger than the heavy oil resource. This allows for a multi-level resource development using medium oil, heavy oil and geothermal resources. The geothermal resources reach temperatures of over 350°F and are below the oil reservoirs. The San Miguel ‘D' sandstone (2,100 feet depth) was targeted for heavy oil research in the early 1980s, when Exxon and Conoco produced 417,673 barrels from pilot plants (Ewing, 2005). The viability of using the geothermal-geopressure resources was studied again in 1991 as part of a Department of Energy research project (Negus-de Wys et al., 1991). The conclusions at that time were that the break even price for oil needed to be $14/barrel and gas $2 per thousand cubic feet. Using those figures, at the time there would be a payback in less than two years. The study included a pilot project using the Alworth Field in South Texas and the Wilcox Formation for fluid temperatures of 250°F to 500°F between 16,000 and 18,000 feet. Seni and Walter (1994) continued to study the heavy oil extraction, concluding that this was the best area to test the viability of using geopressured-geothermal fluids to improve oil recovery. They noted that the Upper Wilcox geopressured-geothermal reservoirs will produce approximately 1,000 to 2,000 barrels per day of fluids. These rates are adequate to test the geothermal technology and evaluate engineering data on South Texas geothermal and heavy oil reservoirs. During the past few years oil prices (USO) fluctuated between $117 and $40 per barrel and the natural gas fund (UNG) between $63 and $8, showing how much variation there can be in the market. The current focus on renewable energy may contribute to renewed interest. With the need for energy continuing to increase, as Ewing (2005) stated, “this resource deserves another look.” DEVELOPMENT and COMMERCIALIZATION Legal Aspects According to the Texas Geothermal Resources Act of 1975, "Geothermal energy and associated resources" means: (1) all products of geothermal processes, embracing indigenous steam, hot 55PDF Image | Texas Geothermal Assessment for the I35 Corridor East
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