Burleson Energy Limited (ASX:BUR) Connecting Wilcox Wells To Sales
Burleson Energy Limited (ASX:BUR) Connecting Wilcox Wells To Sales

Sydney, Feb 11, 2011 AEST (ABN Newswire) - Burleson Energy Limited (googlechartASX:BUR) (BUR) is pleased to advise that the D Truchard #1, a step-out appraisal well on the Heintschel field, was connected on 8 February 2011 (Texas time) to a sales pipeline and has been producing gas and condensate at commercial rates. A further release will be made once the flow rates have stabilised.

It is expected that the Heintschel #2 well, a step out development well on the Heintschel field, will be connected to sales (gas and condensate) next week.

The commencement of production and sales from the Joann #1 well awaits the signed approval of one landowner who has provided verbal approval. When this is received the Joann #1 well will also be connected and opened to sales.

Once all these wells are connected there will be four Wilcox wells producing and selling gas and condensate and generating revenue for Burleson Energy.

Gas from the wells will receive a slight premium (~10%) over the Henry Hub marker gas price (currently at A$4.20 per mcf) while condensate sells for about the same price as crude oil (the WTI marker price is currently ~A$88 per barrel).

Backgound:

The Heintschel field was discovered by the Heintschel #1 exploration well in October 2010. The well encountered a much thicker reservoir section covering a greater area than expected. To follow up the discovery, two wells were planned for late 2010 with dual aims: to add valuable production and cash flow; and, to firm up resource and reserve estimates for the field.

D.Truchard #1, (BUR WI 38%, NRI 29.64%)

The D.Truchard #1 well is located ~3km from the Heintschel # 1 gas condensate discovery. It was planned as an appraisal well in the Heintschel field in Colorado County, Texas. D.Truchard #1 was spudded in late November and drilled to a total depth of 12,000 feet (3658m) and gas shows were recorded while drilling the lower part of the hole. It came in structurally higher than the pre drill prognosis which is a positive indication for the performance of the well. A decision was subsequently made, following electric logging, to complete the D.Truchard #1 well for production.

Heintschel # 2 (BUR WI 38%, NRI 29.59%,)

This appraisal/development well is located 0.37 km from the Heintschel # 1 gas condensate discovery. The Heintschel #2 well was planned as an appraisal well targeting the main gas condensate sands encountered in the Heintschel #1 discovery well but in a structurally higher (updip) location. It was spudded in late December and drilled to a total depth of 11,900 feet (3627m), with gas shows recorded while drilling the lower part of the hole. The main shows appear to correlate to gas condensate charged reservoir sands in the Heintschel #1 discovery well. Results of electric logging of the Heintschel #2 well were as expected, and a decision was made to complete the well for production.

Both D.Truchard #1 and Heintschel #2 required fracture stimulation (fraccing) prior to hooking up to a sales pipeline and the fracs were completed on 24 and 25 January, as planned.

The Joann #1 well (BUR WI 39.4%, NRI 30.73%) made a gas condensate discovery in July 2010. Prior to being shut-in awaiting connection to a sales pipeline the well was tested. One of four prospective zones identified by logging in Joann #1 was perforated and flowed gas at 2.1 million cubic feet of gas per day and approximately 38 barrels of condensate per day.

Heintschel Field Working Interests:

- Burleson Energy: 38.0%

- New Standard Energy (googlechartASX:NSE): 32.5%

- AKG and Associates (AKG): 29.5%

Contact

Mike Sandy
Managing Director
Tel: +61-2-8252-6177
Fax: +61-2-8252-6178
Email: info@burlesonenergyltd.com
http://www.burlesonenergyltd.com



ABN Newswire
ABN Newswire This Page Viewed:  (Last 7 Days: 7) (Last 30 Days: 44) (Since Published: 6280)