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Pedregosa Basin 12_12_2010 - Blacksands Petroleum Inc.

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Concerns about<br />

Volcanism<br />

• KCM - Forest Federal #1 is the closest well in the basin to<br />

Tertiary Volcanics<br />

– Encountered several layers of Quar] Monzonite and<br />

Quar] Latite Intrusives within the Pennsylvanian section<br />

– Contact metamorphism occurred within the sedimentary<br />

rocks adjacent to the intrusions<br />

– Degradation of hydrocarbons did occur within this<br />

wellbore below ~2,500'ʹ<br />

• Intrusive volcanics do not outcrop within the Playas Valley<br />

east of the Animas Mountains<br />

• Intrusive volcanics or metamorphosed rocks have not been<br />

seen in any other wells within the Playas Valley<br />

• Wells drilled to the north for hard rock mineral exploration<br />

encountered narrow zones of fluid migration & alteration

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