Burleson Energy’s (ASX: BUR) goal of starting full development of the Heintschel field in Texas has received a boost with the Truchard-2H horizontal well intersecting a thicker and better quality reservoir than at previous wells.
Wireline logging indicated that Truchard-2H had encountered 36 metres of hydrocarbon bearing sands after its reaching its planned total depth of about 3500 metres.
Besides confirming its potential to be a substantial producer of oil and gas, the logging also found the lower Prairie Bell 1 Sand reservoir unit to be thicker and of better quality in this well than in Burleson’s previous 3 wells in the field.
Burleson will now bring in another rig to drill the vertical section of the well.
Quick gas and condensate sales targeted
The multi-staged gas-condensate Truchard-2H well targets 7 billion cubic feet of gas as well as 200,000 barrels of condensate.
Independent analysis by Integrated Petroleum Consultants had indicated that this production at current commodity prices would deliver total revenue of U$53 million (A$54.3 million) over the expected 10 year term of the well’s life.
Truchard-2H is expected to cost about US$6.3 million and is the first horizontal well drilled on the Heintschel field.
Part of this cost will be paid for by private Australian company Mogal Holdings, which is contributing US$2.76 million to earn a 30% interest in Truchard-2H and the Truchard Unit. This leaves Burleson with a 50% working interest in the Truchard Unit and a 38.33% interest in Truchard-2H.
Drilling will be carried out in 3 phases with the near vertical section of about 3500 metres ; a horizontal section of up to 700 metres the Wilcox sandstone reservoir that will require a rig with a top drive; and a six stage fracture stimulation of the horizontal section.
Following this, the well be brought on production and generate wet gas and condensate sales. This will be facilitated by the proximity to the well of hydrocarbon sales and distribution infrastructure.
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