Burleson Energy (ASX: BUR) has brought its Joann-1 well in Colorado County, Texas, back into production of testing some of the lower prospective zones there.
The well is currently flowing 270,000 cubic feet of gas and 35 barrels of condensate per day from zone 4 in the well.
Joann-1 had originally produced from the shallower zone 2 but experienced water influx in October last year due to a failed cement bond.
This led Burleson to shut in the well for repairs though the company decided to test the lower zones rather than re-perforate zone 2.
The deepest zone 5 produced water with some oil though not at levels high enough to warrant completion while zone 4 flowed at an initial rate of 330,000 cubic feet of gas and 48 barrels of condensate per day.
When zone 4 has been depleted, Burleson will test and if successful produce from zone 3, then repeat the procedure with zone 2 and 1.
The company has also brought its Heintschel-1 well back on stream, bringing total production from the Heintschel field up to 0.9 million cubic feet of wet gas and 26 barrels of condensate per day.
These flows represent net monthly revenues of US$120,000 (A$114,539) to Burleson.
The company is currently planning to drill the Truchard-2H horizontal well 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.
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.