Gulf Coast Western announced in the acquisition of 3,500 acres in Wilson County, Texas.

The company will bypass expensive completions in the Eagle Ford with plans to drill 10 horizontal wells targeting the Buda Limestone.

As more wells are drilled in South Texas, operators will find opportunity in other formations. It will be interesting to see how development programs in plays like the Austin Chalk and Buda perform.

Read moreGoodrich Petroleum Buda Limestone Well Yields Impressive Results

Gulf Coast Western anticipates its horizontal drilling operations to begin in the first quarter of the year, with development extending on the company's leases throughout 2014. Wells in the area have produced as much as 1,500 b/d of oil.

The primary operator for these projects will be Kaler Energy Corporation out of San Antonio.