Burleson Energy (ASX: BUR) has received encouragement that the oil and wet gas prospective Midway and Navarro shales may be present in its Colorado County, Texas, acreage.
It noted that shale gas independent Halcón Resources (NYSE: HK) a US$1.6 billion market cap has had encouraging results from the two wells it drilled into the shales.
While the high profile shales in the acreage are generally too deep to be prospective for anything but gas, Halcón’s work appears to have proven the Midway and Navarro are oil and wet gas prone and may be able to be developed commercially.
Burleson noted that there is always a learning curve to be negotiated in all new shale plays and that Halcón was in the early stages of that process.
It added that should the play be developed to an extent where activity in its acreage is justified, it would seek out partners for the deeper section.
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