Burleson Energy (ASX: BUR) has made good progress with its Truchard-2H horizontal well in Texas with gas and condensate production increasing and water production declining.
The well is currently producing about 1.5 million cubic feet of gas and 60 barrels of condensate per day from frac sleeves 1 to 5, with frac sleeve 6 closed.
It is also disposing about 1,400 barrels of water per day.
This is expected to yield gross revenue of about US$355,000 per month prior to operating costs, production taxes and royalty interests.
The cost of remediation and testing activities at the well is expected to be about US$1.6 million ($0.8 million net to Burleson) over the previously announced US$6.3 million cost to drill, frac and complete the well.
Burleson will pay this cost of this from its cash at hand though it noted that the cost be somewhat offset by sale of wet gas and condensate produced during the testing period.
Current activity is focused on determining and controlling the source of excess water production in the well before another horizontal well can be drilled on the Heintschel field or for a field development decision to be made.
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