Burleson Energy (ASX: BUR) is planning to drill the Truchard-2H horizontal well on the Heintschel field in Colorado County, Texas, that will test the ability of horizontal wells to produce.
Truchard-2H will be drilled to a total depth of 3600 metres with a 610 metre lateral drilled in the reservoir section that will be subject to a six stage fracture stimulation.
Consultant reservoir engineers IPT have predicted that a horizontal well of this sort will produce at several times the rates and volumes of a vertical well.
Truchard-2H is expected to cost a total of US$6 million (A$5.66 million) and follows on the Heintschel-1 discovery well that was drilled in April 2010 and the Heintschel-2 and Truchard-1 appraisal wells.
Burleson’s working interest (38%) share is US$2.28m.
Partners in the field have 30 days from 3 March to decide on whether they will participate in the well.
DeGolyer and MacNaughton had previously estimated the field could hold 30 billion cubic feet of gas and 2.5 million barrels of hydrocarbon liquids.
The company currently has cash resources of about A$6 million.