11 JANUAR Y 2012
DRILLING PROGRAM TO BE ACCELERATED AT SUGARLOAF SHALE GAS PROJECT, TEXASHighlights
• Significantly increased number of wells to be drilled during 2012 targeting an increase in 1P reserves and production rates
• Drilling program will include pilot well spacing programs to optimize future development of the Sugarloaf AMI.
• Potential to appraise additional production horizons during the year
• Marathon to commence drilling during Q1 2012
Eureka Energy Limited (ASX: EKA, "Company" or "Eureka") is
pleased to provide an update on field activities at the
Company's Sugarloaf Project onshore Texas, USA.
Eureka holds a 6.25% interest in the Sugarloaf Area of Mutual
Interest ("AMI"), where a total of
24 wells are currently in production within contiguous leases
covering an area of approximately
24,000 acres. This area is considered to be one of the
premium shale plays in North America.
The Company also holds a 9.4% working interest in a 916-acre
pooled area known as Black Jack Springs and 100% of the Pan
de Azucar property, located north-east of Sugarloaf, as well
as a 100% interest in the Brioche property, north-east of Pan
de Azucar.
SUGARLOAF AMI (EKA 6.25%)
In discussions with Marathon Oil Corporation ("Marathon"),
the new operator of the Sugarloaf Project, Eureka has
confirmed that an accelerated drilling program has been
proposed for the Sugarloaf Project during 2012.
The accelerated program is expected to result in a
significant increase in the number of wells drilled during
2012 compared with the previous operator's proposed program
and the assumptions included in the upgraded reserves
estimate prepared by Netherland Sewell and Associates Inc.
("NSAI") and announced in October last year.
The proposed program is expected to involve continuous
drilling over the year using multiple rigs and is currently
scheduled to commence during the first Quarter of 2012.
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As well as targeting a significant increase in 1P reserves
and production rates, Marathon's proposed program will
include the evaluation of optimum well spacing which will be
used to optimise the overall development plan, capital
allocation and value realisation of the field. The Operator
is also evaluating the potential to appraise additional
production horizons within the Sugarloaf AMI in 2012.
Eureka views Marathon's approach to the Sugarloaf development
very positively in terms of the capacity for accelerating
production and enhancing the overall value of the asset.
In light of this anticipated increase in drilling activity,
Eureka is progressing discussions with a number of
institutions regarding a reserves-based debt funding
facility.
Commenting on the developments, Eureka Energy's Managing
Director, Mr Peter Mills, said:
"This is an exciting development for our Sugarloaf Project, with confirmation now received that drilling activities are set to be rapidly and significantly expanded under the operatorship of Marathon Oil Corporation. This greatly expanded program has the potential to significantly enhance reserves and production from this exciting asset."
Technical Information contained in this report has been reviewed by Mr Peter Mills B.Eng, Managing Director of Eureka who has had 29 years experience in petroleum engineering and
has consented to the inclusion of the information in the form and context in which it appears.
ENDSdistribué par | Ce noodl a été diffusé par Eureka Energy Limited et initialement mise en ligne sur le site http://www.eurekaenergy.com.au. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-12 04:24:33 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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