GeoResources Sells Atascosa Acres - Focusing in Fayette and Gonzales

GeoResource sold 1,800 acres in Atascosa County in late 2011 and plans to focus its efforts in southwest Fayette County and northeast Gonzales County. The company has drilled seven wells to date and has two rigs that will continue Eagle Ford drilling. A recent well in Gonzales County reached a total measured depth of 14,700 ft in 24 days. The company's current well costs run $8.5-9 million and batch completions will be used to help drive costs down further.  

GeoResources is also completing a seismic survey that will help the company identify drilling locations int the Austin Chalk, Buda, Edwards, Eagle Ford, and Georgetown formations.

Operated Eagle Ford Area Highlights

  • 4 gross wells spud in fourth quarter 2011
  • 4 gross wells currently waiting on completion
  • 2 wells currently drilling (1 spud in late December 2011 and 1 in early January 2012)
  • 3 gross wells currently producing
  • All 3 completed in second and third quarters of 2011
  • 48% average working interest
  • Average first 30 day production rate of 409 boe/d
  • 20 to 25 gross wells planned to spud in 2012


GeoResources Well Results and Capital Guidance | 2011-2012

GeoResources expects it will spend approximately $120 million in 2011 and between $188 and $223 million in 2012. Between $74 and $86 million will be spent in Fayette and Gonzales Counties in 2012. Approximately 95% of the company's capital budget is dedicated to the Bakken and Eagle Ford shale development areas. Other highlights include:

  • Drilling a 15,100 ft well including a 5,000 ft lateral in 27 days for $3 million in Fayette County, TX. That's just drilling costs. Completion costs will likely double that number.
  • Commenced drilling of the first of two wells on the Arnim lease in Fayette County
  • Will add two rigs to average a total of 3-4 rigs in 2012 in the Eagle Ford
  • First three wells averaged 408 barrels of oil equivalent per day over the first 30 days from the Flatonia E Unit 1H, Flatonia E Unit 2H, and the Black Jack Springs #1H
  • A total of 25,000 net acres in the Eagle Ford
  • Austin Chalk potential in Fayette and Gonzales Counties. 1st well produced 402 boe/d in the first full month and the most recent well had a 30 ft gas flare and considerable oil shows. The well will be brought to production soon and another Chalk well is planned before year-end.

The Company recently successfully completed drilling its fourth Eagle Ford well, the Peebles #1H (39.8% W.I.) in its operated project area in Fayette County, Texas. This well was drilled to a measured depth of 15,100 feet, with a 5,000 foot lateral in 27 days at a cost of approximately $3.0 million. Through the application of optimal practices, GeoResources was able to significantly reduce the drilling time and cost of this well. The Company believes it can continue to realize improved drilling, completion and operational efficiencies which will positively impact costs in this area.

The Company is currently drilling the Arnim “A” #1H well (50.0% W.I.) with a second dedicated rig expected to begin drilling the Ring “A” 1H well (45.7% W.I.) within a couple of weeks, both of which are located in Fayette County, Texas. After drilling the Arnim “A” #1H, the rig will spud the Arnim “A” #2H (50.0% W.I.), which will be the second well in the Arnim “A” unit drilled from a common pad. These three wells will be completed along with the Peebles #1H well late in the fourth quarter with one frac crew working continuously to complete these wells in succession. After the Arnim “A” #2H, we expect to spud an additional one or two wells in our Eagle Ford project area by year end, which will bring our total 2011 Eagle Ford wells spud to eight or nine gross wells (3.8 to 4.3 net wells).

GeoResources currently plans to add two additional rigs to the Eagle Ford project area during 2012. Based on a three to four rig schedule the Company expects to spud between 21 and 24 gross wells in its Eagle Ford project area in 2012 (8.7 to 9.6 net wells).

GeoResources has continued to add leases to its Eagle Ford project area throughout 2011 and its current net acreage totals approximately 25,000.

In addition to the Eagle Ford, we believe our acreage in Gonzales and Fayette counties has Austin Chalk potential, which lies immediately above the Eagle Ford. A re-entry, located within the boundaries of our southern Fayette County acreage block, was completed in February 2011 by a third party operator. That well, the Cherry Oil Unit 1H, averaged 402 boe/d in the first full month of production after the re-entry and has cumulative production of over 46,000 BO and 41,000 Mcf. We are currently participating with that same operator in a Chalk well, located about three miles to the southwest, being the Tilicek #1H well, where we have a 14.1% W.I. The Tilicek well reached total measured depth of 13,529 on September 19, 2011 and should be on production very soon. This well had considerable oil shows during drilling and also had a 30’ gas flare. We currently have one additional Austin Chalk well planned for Fayette County in 2012; however, we may accelerate our Chalk drilling

Read the entire press release at

GeoResources - Fayette County Eagle Ford Update

Fayette County is attracting more interest and positive results from GeoResources will only fan the fire of the oil boom. Both wells produced more than 1,200 barrels per day during initial test.  That's good for anywhere in the Eagle Ford Shale.

"We recently successfully drilled and completed our first two Eagle Ford wells in our operated project area in Fayette County, Texas. ""We also recently completed drilling our third Eagle Ford well, the Black Jack Springs #1H well, in which we have a 44.1% working interest. After drilling the Black Jack Springs #1H well, the drilling rig was moved to drill the West Cannon Unit #1H well in our Giddings Austin Chalk Field development area in Grimes County. After drilling the West Cannon Unit, the rig will return to our Eagle Ford project in August 2011 and will continue drilling Eagle Ford wells."


"Since April of 2010 we have acquired 24,000 net acres in the Eagle Ford Trend with acreage primarily located in southwest Fayette and northern Gonzalez counties. Our plan is to add a second dedicated drilling rig in the fall of 2011 and a third rig in early 2012 and potentially a 4th rig in mid-2012. Our intent is to significantly accelerate our Eagle Ford drilling in the second half of 2011 and into 2012. As we move forward in our development of this project area, we expect each of our operated rigs to drill 8-10 gross wells per year."