Project Profile
Location: Zavala County, Maverick Basin of Southwest Texas
Reserves: 105,000 barrels per 10 acres
The leases are located in Zavala County, which is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies North boundary of the Smackover-Austin-Eagle Ford total petroleum system. It is the companies\' belief that not only are the shallow horizons productive, the Eagle Ford Shale has great possibilities of being a prolific producer as well, based on the wells being drilled and completed in the area surrounding our lease block.
Kiefer Ranch:
The Kiefer ranch is located in the Northwestern portion of Zavala County, Texas and further ideally situated in an area of numerous Serpentine plugs or tuff mounds. These plugs, by nature in which they were formed, create a subsurface domal feature causing subsequent deposition to drape over them, providing traps for the accumulation of oil and gas in these over lying Taylor formations. Above the Taylor is the Navarro age Escondido, a lenticular sand that also has created numerous traps for accumulation. With these conditions present, any formation drilled is subject to contain oil and gas, a fact further substantiated by the numerous shows logged and cored in the wells drilled on this ranch and adjacent property. Oil was discovered in the Windmill Creek Field in 1983 by Rome Exploration #3 Kiefer at a depth just slightly below 700 feet in the Olmos formation. The well initially flowed oil to the surface and later tested 6.9 BOPD according to RRC records. Four more wells were drilled and completed in this Olmos sand.
Using available core data and generally accepted engineering practices, original oil in place (OOIP) is calculated to be 105,000 barrels per 10 acres. Normal performance of these wells would expect recovery to be near 15% of these reserves. This represents primary production conditions and no enhanced oil recovery (EOR).
Based on the producing characteristics, the reservoir is of substantial size and but the actual measurements still needs to be determined. Once it is established by development drilling, a system of depletion can be developed with a water flood or some other type of EOR method. The minimum recovery expected from a workable EOR method would be 30% of the OOIP. Due to the depth of the reservoir there appears not to be sufficient energy in the reservoir to effectively deplete the reserves, which is not uncommon.
There are a number of Taylor sands recorded on logs and cores that appear to be productive of oil on this lease and need to be tested or completed in future drilling. The Anacacho should also be closely watched.
The Navarro and Taylor formations together have produced 400 MMcf of gas from this lease through the year 2007. Based on viewing adjacent logs and the existence of nearby gas production and the above-mentioned gas from this lease, there are strong indications the northern and western portion of this ranch still has a lot of commercial gas to produce.
Red Hawk:
Petrohawk own leases or have options on approximately 77,000 net acres that are located in Zavala County, Texas. Our working interest in this acreage ranges from 81 percent to 90 percent, and our net revenue interest ranges from 61 percent to 68 percent. The Red Hawk Eagle Ford Shale pay thickness ranges from 100 feet to 140 feet.
Three wells were drilled in 2010, two of which were completed and on production as of December 31, 2010. These have an average true vertical depth of 5,500 feet and they were drilled with horizontal laterals that averaged 5,500 feet. The wells are cased hole completed and were fracture stimulated with an average of 17 stages. The wells were drilled in an oil window of the Eagle Ford Shale and their initial producing rate averaged 375 Bo/d with an insignificant volume of gas. There are five wells budgeted for 2011.
Murphy Lease:
Eagleford Energy is working to acquire 2,637 acres in northeast Zavala County, Texas known as the Murphy Lease. The acreage is located in the Maverick Basin down-dip from the northern boundary of the Smackover-Austin-Eagle Ford total petroleum system.
The company intends to develop multiple formations on the Murphy Lease. The area features oil and gas production from the San Miguel Sands including 900 million cubic feet produced in the same formation one mile south on a Serpentine Plug. The objective for the Murphy Lease is production of conventional oil or gas from the San Miguel Sands at approximately 2300 feet.
Eagleford Energy expects to encounter blanket Eagle Ford Shale across the Murphy lease at 4200 feet and intends to produce light sweet crude oil with horizontal drilling and fracturing.
Operators:
Petrohawk: Red Hawk
Gulfmark Energy: Kiefer Ranch
Eagle Ford Energy Inc.: Murphy Lease