Projects Overview
THE EAGLEFORD SHALE
The Company is working to develop a number of potentially high volume oil targets, with the Eagle Ford shale formation being the Primary Target. Petrohawk’s 87,000 acre Red Hawk Project, with 2 producing oil wells, surrounds Eagleford Energy’s Matthews Lease. An April 2010 Technical and Economic Assessment report prepared by global geology firm
RPS Group estimates the Matthews Lease contains 4 million barrels of recoverable light oil from 20 horizontal drilling locations Eagle Ford Shale oil resource.
RPS further reports an additional 4 million barrels of recoverable light oil from 20 horizontal Eagle Ford Shale drilling locations on the Murphy Lease.
Eagleford Shale projected oil recovery figures are based in part on: the published results of Petrohawk and EOG Resources (NYSE EOG), the blanket nature of the oil found in the Eagle Ford shale causing an average 200,000 barrels of oil recoverable per drill location, and the spacing units used in the area.
- 8 Million Barrels of Recoverable Conventional Oil Targeted in Eagle Ford Shale
- 6.844 Million Barrels of Recoverable Unconventional Oil Targeted in San Miguel Sands, 70 Million Barrels OOIP
- 5,266 Acres on Two Leases in Zavala County, Texas
- Results From Contiguous Petrohawk Red Hawk Project – Two wells Completed In 2010 With Average IP’s of 352 BOPD
- Chesapeake Completed Traylor North 1-H Well located South of Murphy Lease With Production of 930 BOPD
The Projects
The Matthews Lease is surrounded by Petrohawk's (Petrohawk Energy Corporation NYSE: HK) Red Hawk block where Petrohawk has announced initial production of 350 barrels a day of oil from a horizontal well drilled on its Mustang Ranch "C" #1H location and 355 barrels a day of oil from a horizontal well drilled on its Mustang 2H well. Published reserve estimates are reported at 150,000 to 250,000 barrels of oil recoverable. Log reports show 380 feet of Upper and Lower Eagle Ford shale on Eagle Ford Energy’s Matthews Lease of which approximately 160 feet is the organically richer lower Eagle Ford. Additionally, previous engineering reports indicate that the San Miguel formation contains 70 million barrels of heavy oil in the San Miguel D Sands and another 80 million barrels of heavy oil in the San Miguel A,B,C, Sands - all within the bounds of the Matthews Lease."
The Murphy lease is located approximately 10 miles northeast of Chesapeake's (Chesapeake Energy Corporation NYSE: CHK) recently announced initial production of 930 barrels a day from its Traylor North 1-H well.
Multi stacked Formations Expands Potential to 6300 feet and beyond
Expansions of company geological and geophysical activities indicate four potentially hydrocarbon-charged zones, including: Edwards A, Edwards B, McKnight, and Georgetown. Oil was produced from each of these four (4) formations during a 5 Month test in the 1980’s of the Electrothermic #3 Well. The Electorthermic well is located approximately 2000’ off the west boundary line of the Matthews Lease.
The proximity of these four oil formations to one another provide the opportunity to co-mingle production as they are situated within a 600’ section at approximately 5700’ to 6300’ vertical depth. The stratigraphical map, below, shows their location with respect to our two main targets (EFS & San Miguel Sands).
The projected potential for the Edwards A, Edwards B, McKnight, and Georgetown formation is nearly 5 million barrels of oil.
Another potential target, located beneath the Edwards at approximately 8000’, is the Pearsall Shale. The Pearsall Shale, a lightly-drilled target to date, has proven economical in Maverick County, located southwest of our leaseholds. The Pearsall Shale blankets both the Matthews and Murphy leases, offering a second, deeper oil / gas shale play to the company