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

Austin Exploration Eagle Ford Acreage Map

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.

“The oil flow from our first Eagle Ford well with Halcón gives confidence for our highest expectations for the future potential of the wider field which has the capacity for another 100 drilling locations. It proves the value we saw in this property when we acquired it in 2011. It also confirms the decision to bring world class operator Halcón to the project to advance the drilling program. The success at Eagle Ford will generate the revenue needed to fund the further development of our projects.”

— Austin Exploration Managing Director and CEO, Dr. Mark Hart

In April 2014, Austin announced that drilling had begun on the second and third wells in tandem due to the good initial production rates from the Stifflemire #1H). The Kaiser 2H and the Nemo 1H well be drilled to a planned total depth of 17,500 feet with an 8,000 to 10,000 foot lateral.

Austin has approximately 5,000 acres covering the Eagle Ford Shale formation in Burleson County, TX. The company is primarily targeting the Eagle Ford Shale and Austin Chalk, but is also prospective for the Taylor Sands, Buda Limestone and Georgetown formations.

Read more at austinexploration.com

Austin Exploration Reaches Eagle Ford Deals With Halcon & Petromax

Austin Exploration Eagle Ford Map

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).

The second farm out deal was signed with Petromax and covers 645 acres in the Birch-Loan Oak unit in Burleson County. Petromax will fund the first horizontal Eagle Ford well in the unit and will earn a 70% interest in the prospect.

Wells in both areas are estimated to cost $8-9 million. Halcon and Petromax will fund approximately $32-36 million in Eagle Ford wells to earn a 70% interest in the respective acreage. The deals value Austin Exploration's acreage at over $3,000 per acre.

Austin Exploration had drilled one vertical well on the property to date. The Krueger #1 encountered seven hydrocarbon bearing zones and a 270 ft thick portion of the Eagle Ford. The well was drilled to a depth of 9,325 ft.

Read more about the company at austinexploration.com

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.

The well encountered gas shows in the Taylor sand formation between 6594 and 6615 feet.

The well has since been drilled to a total depth of 9325 feet and further hydrocarbon shows were encountered in the final stages of drilling, including in the primary Eagle Ford formation target between 8829 and 9102 feet.

Read more at upstreamonline.com

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.

Austin's Eagle Ford Shale project is located in the oil/wet gas window of the play, which has proven to be the most productive area of the play, with an interpreted thickness of ~300 feet. Austin acquired its Eagle Ford Shale interests for an average of only ~$400 per acre, well below industry peers, following a detailed due diligence including an independent technical report and analysis of 12 nearby wells, all with production. The independent technical report prepared for Austin as part of its due diligence suggested potential initial production rates of >800 bopd and NPV per well of up to $7 million, with potential for 31 wells.

Read the full news release at abnnewswire.com

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. 

Austin Exploration Limited (ASX:AKK) is pleased to announce that settlement of its two North American Oil and Gas Shale assets has successfully been completed, with a fully funded multi-well drill program due to commence mid next month.

Austin has acquired more than 16,000 acres that lie within two of the most prolific Oil and Gas Basins in North America. Both properties are located in close proximity to infrastructure and drilling conditions are excellent.

Approximately 11,000 acres have been acquired in Freemont County, Colorado, covering the Niobrara Shale within the Denver Julesburg (D.J) Basin. An additional 5,000 acres covering the Eagle Ford Shale have also been acquired in Burelson County, Texas.

The first well has been set to spud on Monday the 19th September 2011, US time. The Company will first drill 3 vertical wells, after which engineers will examine and review the electronic logs and the core samplesfrom the 3 wells. The best results from these wells, in terms of oil production and formation characteristics, will be re-entered and a 5,000ft horizontal "multi-stage frac" will be drilled into the Eagle Ford formation. An independent report on Austin's acreage has highlighted potential for 32 development wells with potential of 179,000 - 810,000 barrels of oil per well from the formation, with additional potential from Austin Chalk and Buda/Georgetown Limestone (see ASX announcement 7 July 2011).

E.F. SHALE "BIRCH PROSPECT" - BURLESON COUNTY, TEXAS

PROJECT HIGHLIGHTS:

1. Approx 5,000 acres with a 93.5% Working Interest and a 70% Net Revenue Interest

2. Interpreted thickness of 300 feet in Eagle Ford formation

3. The Shale is mainly clay-rich limestone with low quartz content making less brittle than typical shale reservoirs (Barnett), yet with high fracturing capability.

4. Potential IP for horizontal well of > 800 BOPD.

5. At 120 acre spacing, this will allow for 32 wells to be drilled horizontally.