Project Profile
Value: Undisclosed
Location: Burleson County, Texas, USA
Reserves: approx 179,000 – 810,000 BO per horizontal well
Production: 95 BOEPD
Start-up Year: -
Austin Exploration has revealed the identity of a farm-in partner at its Birch project in Burleson County, Texas. The company would fund 100% of the next three Eagle Ford shale horizontal wells at the project in order to earn a 70% stake. The new partner is Halcon Resources. Under the farm-out agreement, Halcon will make an upfront payment of US$1.9 million for an 18 month exclusive drilling option during which time the three Eagle Ford wells must be drilled. The total cost of drilling all three wells is estimated to be US$24-US$27 million.
The primary Objective is the Eagle Ford Shale. Initial production rate from vertical well flowed at 95 BOEPD. Around160 acre spacing allows for 32 horizontal wells to be drilled. Initial vertical well, the Krueger #1 well successfully reached target depth of 9,325 ft with seven Hydrocarbon zones encountered including approx a 270 ft thick section of the Eagle Ford Shale. The independent reserve estimates of approx 179,000 – 810,000 BO per horizontal well.
Operators:
Austin Exploration: Operator with 30% interest
Halcon Resources: 70% interest