Sun Resources to acquire Texan based oil project in prolific Eagle Ford Shale Oil Fairway

Sun Resources (ASX: SUR) is positioned to acquire a significant oil project in the U.S., with the company's shares currently in a voluntary suspension due to a capital raising plan being undertaken.

The acquisition of the Delta Oil Project - consists of an extensive 10,000 acres of oil and gas leases in the emerging ‘Eaglebine’ oil play within the shallow oil zone of the Eagle Ford Shale trend.

Independent consulting firm Ralph E. Davis has estimated unrisked 10 million barrels of net Prospective Oil Resources in one sand unit of the Delta Oil Project.

Assuming production of the 10 million barrels of Prospective Resources, Ralph E. Davis estimated the NPV of the Delta Oil Project of US$310 million would equate to:

- NPV of US$10,333,333 per well; and
- NPV of US$31 per barrel of oil for 10 million barrels of oil from one 20 feet thick sand unit.

Recent horizontal wells within 35 miles of the Delta Oil Project have obtained initial flow rates of 900 to 1,200 barrels of oil per day from multi-staged fracced laterals of 6,000 to 7,000 feet in sandstone units and operators are reporting Estimated Ultimate Recoveries (EUR) of 300,000 to 600,000 barrels of oil per well.

Sun has entered into a binding Term Sheet with a Houston based private oil and gas company, where Sun will acquire 100% working interests in all of the leases, each with a minimum 75% net revenue interest, a three year lease term and in most instances, also have a 2 year option to extend the lease term.

Highlighting the potential of the project, independent petroleum engineering and geological consulting firm Ralph E. Davis estimates unrisked 10 million barrels of net Prospective Oil Resources in just one sand unit.

The consultants also pointed to the potential upside of a further unrisked 10 to 20 million barrels of Prospective Oil Resources in other sand units in the 450 feet thick prospective sequence.

Source: Proactive Investors  

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Global Petroleum: Production from 2nd Eagle For well forecast for September

Global Petroleum (LON:GBP) said today that its second well on Eagle Ford shale in Texas had been cased and prepared for fraccing, testing and production - due to take place in mid August.

First oil and gas production from the Tyler Ranch EFS No. 2H well on the Eagle Ford basin is forecast for early September this year.

The company's share price was up 7.58 percent in afternoon deals - trading at 17.75 pence.

The well been drilled to a total depth of 15,767 ft by the firm's partner Texon Petroleum Ltd (ASX:TXN), said the firm.

Texon drilled 4,500 feet of horizontal well in the Eagle Ford reservoir and oil and gas shows throughout are in line with what was found in the nearby first Eagle Ford well, said Global.

The first Eagle Ford well - the Tyler Ranch EFS No. 1H - showed  an initial test rate of 1,267 boepd in December last year and has been in production since.

Global Petroleum has a 7.939 percent working interest in around 1,651 acres of the Leighton prospect in Texas beneath the Olmos formation including the Eagle Ford shale.

Global has an interest in 8 producing wells, with the ninth well due to begin production following the fraccing in August.


Source: Global Petroleum

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Fracking Brings Boom to South Texas Towns

PLEASANTON, TEXAS-The technique of “fracking” has turned the oil and gas industry around and made experts take a second look at domestic oil exploration.  While it may be a controversial way of getting oil from the ground, it’s also pumping in millions of dollars into the economy in south Texas everyday. 

The town of Pleasanton seems to be a gateway of sorts to the Eagle Ford shale area.  Eagle Ford is what’s driving this big boom. You can tell by just the traffic in Pleasanton that’s there’s something different going on.  More businesses, more money, more people. Chris’s Café is a favorite lunch stop for people here, a particular favorite of folks working long hours in the oilfield.  

Xavier Gonzalez of Capital Well Services told us, "Long hours, the hours can be long 10-12-16 hour days, a lot of 24 hour businesses. 

For Chris’s Café owner Mary Rodriguez, it’s changed her world. "In the restaurant business, your busy some days and it’s slow some days.  But now, like you see it today, it’s everyday."

Source: WOAI

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Regency Energy to Spend $450M on Eagle Ford Explantion

(Reuters) - Natural gas services provder Regency Energy Partners LP said it will spend about $450 million to build facilities for providing gas and condensate gathering services for a producer in the Eagle Ford shale of Texas.

On completion, the company's system in south Texas will be able to gather, compress, treat and transport up to 1 billion cubic feet per day of natural gas and 26,500 billion barrels per day of condensate to downstream outlets.

The company said it will also raise the capacity of its Tilden treating facility in McMullen County, by 20 million cubic feet per day to meet increasing producer demand in the Eagle Ford shale.

The Eagle Ford expansion positions the company to offer similar services to other key producers in the shale play, Keith Crawford, regional vice president of Regency, said.

Eagle Ford has emerged as the hottest of those North American shale fields, since much of its output is oil, which remains above $100 per barrel, rather than natural gas, which flows from fields such as the Marcellus shale.

Source: Reuters

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Eagle Ford's Job Boom Gets Louder

CARRIZO SPRINGS — It’s lunchtime at Lee’s Steakhouse and the restaurant has few empty seats.

A nearby convenience store is crowded with long lines at the two registers and a queue at the gas pumps. Roads are clogged as tankers barrel through to deliver equipment to remote oil rigs.

Welcome to a county at the heart of the Eagle Ford shale, which some have called the most promising oil play in the nation.

Just two years ago, no one would have suspected that Dimmit County, pegged by the U.S. census as the 19th-poorest county in the United States, would be at the heart of a boom. There were few wells being drilled in the region, and local businesses were begging for customers.

But drilling in the Eagle Ford, a 400-mile-long formation stretching from East Texas to Webb County, has touched off a hiring frenzy in South Texas that is generating thousands of jobs.

Source: My San Antonio


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