IP — Eagle Ford Shale News — Eagle Ford Shale Play

Abraxas Petroleum provided an operations update on the Eagle Ford. The company's first well in DeWitt County produced more almost 260,000 barrels equivalent in the first seven months and is currently producing 800 barrels of oil equivalent per day. A Talisman operated well, in which the company has an interest, came online in mid-August producing 1,500 barrels of oil equivalent per day after the companies completed a 14 stage frac stimulation. Abraxas is completing a horizontal well with 18 frack stages in Atascosa County and plans to drill two wells in McMullen County before year end. Abraxas has over 12,000 net acres that stretch across Atascosa, DeWitt, Lavaca, and McMullen counties. The company reports having as many as 75 net drilling locations on 160-acre spacing.

Abraxas currently owns a 41% equity interest in Blue Eagle, a joint venture between Abraxas and Rock Oil Company, LLC.
In DeWitt County, Texas, Blue Eagle's first well, the T-Bird 1H, continues to outperform expectations and is currently producing 800 barrels of oil equivalent per day, 50% of which is condensate or natural gas liquids. The well has produced approximately 260,000 barrels of oil equivalent during its first seven months on production. Blue Eagle owns a 100% working interest in this well.
In DeWitt County, Texas, Blue Eagle participated in a non-operated horizontal well with its 43.9% working interest. The Matejek Gas Unit 1 was drilled to a total measured depth of 17,865 feet, including a 3,600 foot lateral, and completed with a 14-stage fracture stimulation. The well was placed on production in mid-August and is currently producing approximately 1,500 barrels of oil equivalent per day on a 10/64-inch choke, 45% of which is estimated to be condensate or natural gas liquids.
In Atascosa County, Texas, the Grass Farms 1H was drilled to a total measured depth of 13,150 feet, including a 5,400 foot lateral, and completion operations are underway with nine of the planned 18-stages complete. Blue Eagle owns a 100% working interest in this well.
Blue Eagle anticipates drilling two horizontal wells on its recently acquired leasehold (2,487 net acres) in McMullen County, Texas in the fourth quarter.

Jadela's El Indio #1-H Eagle Ford well that was completed with a GasFrac propane frack or LPG frack was tested over the past couple of weeks. The companies injected over 225,000 gallons of liquid propane and butane into the formation. The well test results are a little difficult to interpret because production was limited by the LPG fluid recovery system. The most recent 24 hr period produced 210 barrels of oil and 706 mcf. It's still early to declare success, but those aren't bad numbers for Maverick County, TX. It will be interesting to see just how much propane and butane Jadela was able to recover. LPG's are expensive frack fluids, but you get to resale the fluid if it can be recovered.

Jadela Oil Corp. wishes to announce that the El Indio #1-H well produces oil, gas, butane and other hydrocarbons. Approximately 5,360 barrels of liquid propane/butane were injected into the formation to fracture the well. The majority of this propane/butane is expected to be recovered and resold or used for fracturing subsequent wells. The well was flowed for 58.75 hours from August 27, 2011 to August 31, 2011. The well was then shut in in order to test the purity of the recovered propane/butane for resale purposes. The well was reopened on September 3, 2011 and is currently producing. The well is expected to be produced for the next 7 to 10 days while the tie-in pipeline and permanent treatment facility, storage tanks and trucking terminal are being constructed.
The permanent treatment facility/trucking terminal is located two miles away from the El Indio #1-H wellsite on Highway 1021. Oil flow and gas flow are restricted by the capacity of the propane/butane recovery equipment. As of September 6, 2011 (6:00am)(122.75 flowing hours) the well had produced 969 bbl of oil (210 bbl in last 24 recorded hours) and gas of 13.978 MMscf (0.706 MMscf in last 24 recorded hours) or alternatively stated a boe/d of approximately 327 boe/d (for last 24 recorded hours) from a 2,400 foot lateral with an 8 stage frac (2 of which were not fully fracced) with the flow rate choke restricted to 10/64 of an inch. The oil recovery rate is increasing as the propane/butane from the frac is recovered. Jadela is in the process of acquiring additional equipment to increase the propane recovery rate.
When drilling El Indio #1-H, Jadela drilled a pilot hole and logged the pilot hole with the following log suites: DSL/HDIL/ZDL/CN/GR/Sonic. A total of 25 sidewall cores were obtained over the 186 foot Lower Eagleford formation. In the El Indio #1-H wellpath/frac zone (excluding certain anomalous results) the lab results as prepared by Core Laboratories LP (independent laboratories) showed TOC of 5.0 - 6.5% with a carbonate percentage of 50 - 60%. Total (ambient) porosity (MR Shale TM Analysis - Core Laboratories LP) ranged from 10 - 15% and total percentage pore volume occupied by oil ranges from 37% to 79%. The oil produced has an API gravity of 40.3 degrees according to Fesco, Ltd (independent engineers).