Austin Exploration Eagle Ford Well with Halcón Resources Has Good Initial Production (IP) Rates

Austin's Burleson County, TX Well Had Initial Production of 1,066 boe/d (87% oil)
Austin Exploration Eagle Ford Acreage Map

Austin Exploration Eagle Ford Acreage Map | Click to Enlarge

Australian-based Austin Exploration saw good initial production (IP) rates from its’ first Eagle Ford well with farmee partner

Halcón Resources in late March 2014 of 1,066 boe/d (87% oil). The well (Stifflemire #1H) was drilled to a total depth of 17,000 feet with an 8000 foot horizontal leg into the Eagle Ford Shale.

Austin Exploration entered the Eagle Ford in 2011, and in May 2013 announced a farm-out program with Halcón, whereby Halcón agreed to pay for the cost of three horizontal wells to earn a 70% interest in 4,400 acres of Austin’s Birch Project. The cost to drill these wells is approximately $10 million per well.

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Austin Exploration Reaches Eagle Ford Deals With Halcon & Petromax

Austin Will Have Its Costs Carried On The Next Four Wells & Retain A 30% Interest In The Prospects
Austin Exploration Eagle Ford Map

Austin Exploration Eagle Ford Map | Click to Enlarge

Austin Exploration recently completed two farm out deals on the company’s ~5,000 acres in the Eagle Ford.

The first deal was signed with Halcon Resources and included over 4,200 acres in the Birch Prospect in Burleson County. Halcon paid $1.9 million upfront for an 18 month drilling option and will gain a 70% interest in the block by funding the next three Eagle Ford wells ($24-27 million cost). [Read more…]

Austin Exploration Burleson County Cotton Valley – Eagle Ford Well

Austin Exploration drilled a well through both the Cotton Valley Taylor Sands and the Eagle Ford Shale in Burleson County, TX. The company was encouraged by gas shows in the Cotton Valley and oil & gas shows in the Eagle Ford. The company plans to complete the well as soon as possible and might commingle production from both zones.

Very few Eagle Ford wells are producing in Burleson County, so this could be the first of many. Austin Exploration has 5,000 acres in the area and will continue drilling if production rates prove commercial.

The county is better known for production from the Austin Chalk. With successful Eagle Ford wells in Louisiana and possibly one in Burleson County, it sure seems as if the Eagle Ford is only going to get bigger.

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Austin Exploration Spuds Eagle Ford Well in Burleson County, TX

Austin Exploration will spud an Eagle Ford Shale well in Burleson County, TX during the week of October 25, 2011. The company has assembled a 5,000 acre position in the county at a cost of $400 per acre.

The company plans three vertical wells and then a thorough evaluation of reservoir properties. Austin Exploration expects to intersect a 300 ft section of the shale in this area. The Eagle Ford is the primary target at 8,700 ft and the Austin Chalk is the secondary target at 8,300 ft. The Taylor Sands, Buda Lime, and Georgetown Lime are also potential hydrocarbon bearing zones. [Read more…]

Austin Exploration Acquires Burleson County Eagle Ford Acreage

Austin Exploration gets Burleson County, TX, Eagle Ford Shale acreage by closing a previously announced deal. The company closed on two prospects, which expands the company’s operations into the Eagle Ford and Niobrara.

A few notable points in the Austin Exploration press release are that the company believes the formation is 300 feet thick in this area of Burleson County and expects initial production rates in excess of 800 barrels per day on wells spaced at 120 acres. The expected IP would be a good well almost anywhere in the play. The working interest (WI) compared to the net revenue interest (NRI) indicates the company has a total royalty burden of approximately 25%. That’s a big royalty for an unproven area. I’d be interested to hear if that includes some assignment or override to the company or broker who initially leased the acreage.  [Read more…]