Well Test — Eagle Ford Shale News — Eagle Ford Shale Play

Carrizo Eagle Ford and Pearsall Shale Map

Carrizo Oil & Gas will test a Pearsall Shale well in late 2012. The Eagle Ford Shale is the company's primary focus in Frio, La Salle, McMullen, and Atascosa counties, but the Pearsall could add additional resource to the company's portfolio. The first test will spud in late November 2012 in Frio County. Just a couple of weeks ago, Cabot Reported Pearsall Shale Well Results that looked promising. Carrizo is following suit.

Carizzo also added 2,000 acres in La Salle County during the third quarter of 2012. The company now has more than 48,000 net acres prospective for the Eagle Ford. That acreage is predominately located in La Salle County, but stretches across three neighboring counties as well. The Pearsall is prospective on 30,000+ acres of the company's position, but it will take several exploration wells before the company knows where the play has liquids potential. Dry gas wells aren't going to be the target if natural gas prices stay low. [ic-c]

Carrizo's Eagle Ford Assets Continue Growth Trajectory

Carrizo's Eagle Ford Production Mid-2012

At the end of the third quarter, Carrizo was producing 7,200 b/d and 14 mmcfd net. The company is producing from 61 gross wells and has three rigs running continuously. 24 gross (19 net) wells are waiting to be brought to production. Four 80-acre spacing wells have been tested, but more production history is needed before the company can deem the down spacing test successful.

The company's first 45 wells averaged 530 b/d of production through the first 30 days. IP rates are coming in consistently in the 600-1,000 barrel range and EURs are estimated at approximately 400,000 boe per well. Oil production is also enjoying premiums of as much as $8 to NYMEX quoted prices. Watch for conclusive results on down spacing and production from the first Pearsall Test.

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).