BURLESON ENERGY LIMITED - ASX: BUR

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Burleson Energy Limited (ASX: BUR) listed on the Australian Securities Exchange in May 2006. The company teamed with an experienced and family-owned Texas oil company, AKG Energy, for the drilling and development of hydrocarbons onshore in the gulf coast region of Texas, one of the most prolific energy provinces in the United States.

Burleson shifted its focus in 2009 from drilling Austin Chalk wells to drilling conventional sandstone reservoirs. The company now holds interests in oil and gas leases covering some 25,000 acres in Colorado and Wharton counties and began drilling in Colorado County in February, 2010. The drilling program has already resulted in three discoveries, the most notable being the potentially sizeable Heintschel field.

Heintschel Field

The Heintschel field was discovered as part of a drilling program in Colorado County, Texas, that Burleson Energy began with our partners in early 2010. We have a working interest of 38% in this prospect.

Other Wilcox targets

Moeller 1 was spudded to the south-west of the Colorado County 3D area in May 2010. We have a working interest of 38.5% and a net revenue interest of 30.03% in the Moeller prospect. There were gas shows while drilling Moeller 1 but it tested water and minor gas from 33m thick, high porosity sand. Further testing has determined that this reservoir will flow gas in commercial quantities if found in an updip location with higher gas saturations. The 3D data defines an updip drilling location 53 metres high to the Moeller 1 location that could result in 10.4bcf gas and 0.24mmb condensate.

Joann 1 was spudded in the Colorado County 3D area in June 2010. Here, we have a working interest of 39.4% and a net revenue interest of 30.73%. This well resulted in an oil and gas discovery. It flowed 2.1 million cubic feet of gas per day and approximately 38 barrels of condensate per day during testing. This represents a restricted flow through a small choke. When the well was connected to Sales on the 4 April 2011 it had been producing hydrocarbons at an average of 1.578 million cubic feet (mmcf) of gas per day and 79 barrels of condensate per day through a 13/64 inch choke.

Hill Prairie Bell

Burleson Energy has acquired a 36% working interest (27.18% net revenue interest) in attractive new Wilcox prospects known collectively as the “Hill Prairie Bell Project” and encompassing a total of 700 acres (283 hectares) in Colorado County, about 12 kilometres southwest of our 119 square mile 3D seismic (CC3D) project area.

Two structural closures at the prolific Prairie Bell (PB) level are mapped within this acreage. The closures are fully defined by recent 3D seismic and are just 5km from several pre-3D fields discovered prior to 3D seismic coverage as well as recent discoveries found using the recent 3D seismic, all of which produce from the PB level.

The closures as mapped have the potential to contain up to an estimated 14 Bcf of gas plus 400,000 barrels of condensate (mbc) recoverable. It is anticipated that the largest of these closures (~8 Bcf & 240 mbc) will be drilled during Q2, 2011.

The extra Wilcox targets are a welcome addition to our prospect inventory, especially considering the success of two of our three Wilcox prospects drilled to date – Heintschel and Joann. In particular the potentially sizeable Heintschel field currently under development shows potential for Prairie Bell Wilcox reservoired prospects in Colorado County.

Yegua target

Brasher 1 is within the Colorado County 3D area and was the first well to be drilled in Burleson Energy’s 2010 exploration program. It was spudded in February 2010. We have a 38% working interest and a 29.77% net revenue interest in this prospect.

Brasher 1 is a shallow well (1500 metres) and was relatively inexpensive (US$0.6 million) to drill. The well resulted in a gas discovery. Currently Brasher 1 is flowing at about 0.5mmcf per day and generating ~A$17,000 income per month for Burleson Energy through its sales.

Mine For

oil, gas

Location of operation(s)

USA

Address

Level 6, 9 Barrack St
SYDNEY, NSW, AUSTRALIA

Phone

(61 2) 8252 6177

Email

Website

http://www.burlesonenergyltd.com/

Last Updated

29/04/2011