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Burleson Energy has four producing vertical wells and has commenced drilling its first horizontal well in the Heintschel field in South Texas, targeting the proven hydrocarbon bearing Wilcox sandstone. Expectations are this well could produce at several times the rate of the existing wells. Successful implementation of the horizontal well will see this strategy rolled out over 10-15 additional sites within the Heintschel, significantly boosting production.
Burleson Energy (ASX: BUR) is a junior oil and gas company with its principle projects located onshore, in the Gulf Coast region of Texas, USA.
The company has a working interest in ~26,000 acres of exploration licences within the Colorado and Wharton counties in South Texas. The most advanced project in the portfolio is the ~4,400 acre Heintschel oil and gas field which was discovered in April 2010. Following the discovery of the field, Burleson and the joint venture partners completed a further two vertical appraisal wells with all three wells producing from the Wilcox formation. A fourth vertical well, Joann #1, on the neighbouring Joann field, augments total current production of 460,000mcf and 22,000bbls of condensate per annum.
Within the Heintschel field, a fully funded horizontal well is currently in progress aimed at increasing production from the tight Wilcox sandstone. The vertical section has already reached target depth, intersecting a hydrocarbon charged reservoir with 36m of net sands. The horizontal section and six stage ‘frac’ will be completed in the coming weeks.
The horizontal well, if successful, will significantly increase production from the field, boosting company cash flow and provide a short-term opportunity for a share price re-rating. A roll out of the ‘horizontal well strategy’ across the 10-15 sites within the Heintschel field provides a longer term pipeline to further increase production, supported by established infrastructure.
Burleson Energy has a 38% Working Interest...
Official website: http://www.burlesonenergyltd.com/
ASX on Hotcooper: http://hotcopper.com.au/asx/BUR