Burleson Energy Limited (ASX:BUR) Heintschel #1 Well Selling Gas And Condensate Post-Frac And Field Development Drilling Now Planned

Sydney, Nov 1, 2010 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) advises that the Heintschel #1 fracture stimulation (frac) has been successful, and the well has been flowing hydrocarbons to sales over the past 71+ hours. During this time the well has cleaned up significantly and the flow rates of both gas and condensate have increased steadily. The wellhead flowing pressures have also stabilised at about 2775 psi during this period indicating the Heintschel #1 is a strong well with good reservoir permeability.

The well is currently flowing about 2.4 mmcf/d gas and 100 bbl condensate per day through a 18/64" choke. The well has been flowed on various choke sizes whilst the frac fluids are recovered and the well is cleaning up. As a result, neither the maximum flow rate nor the most efficient daily production rate has been established.

Based on the mix of hydrocarbons produced to date, there is a higher than anticipated ratio of condensate to gas at Heintschel #1. This is encouraging from a pure sales revenue point of view and nearly doubles the estimate of contingent recoverable condensate for the Heintschel field. To date, the well is also producing water at a higher than anticipated, but easily managed, rate.

The encouraging flow rates and well performance following the Heintschel #1 frac has prompted the joint venture to revise the immediate work program to focus on the drilling of an appraisal well located on the Heintschel closure some 2900 metres from Heintschel #1.

This is to be followed by an offset development well 366 metres from the Heintschel #1 location. This program will focus on generating cash flow from production wells that can be tied into existing infrastructure. In addition, the appraisal well will further define the size of the contingent resources contained within the broader Heintschel structure.

Contact

Mike Sandy Managing Director Tel: +61-2-9450-2002 Fax: +61-2-9986-1753 Email: info@burlesonenergyltd.com http://www.burlesonenergyltd.com