Bering will initially drill four test wells on its Eagle Ford shale play in Central Texas. The results from these initial wells will help with the design and development of a more in depth drilling program for the remaining 116 potential wells locations. These initial four wells will target the Eagle Ford, Austin Chalk, Buda and Edwards zones and based upon current prices have gross potential reserves of $11,000,000. Bering will retain a 100% working interest and an 80% net revenue interest with a two year lease term.
The Eagle Ford Shale is a shale rock formation located in multiple counties in South Texas. It underlies the Austin Chalk and is considered by geologists to be the "source rock," or the original source of hydrocarbons (oil and gas) that are now found in the Austin Chalk. Industry leaders have been quoted as saying that it has the "perfect mineralogical makeup for shale play" and one of the world's largest oil & gas companies has already called it the sixth largest domestic oil discovery in the U.S. history.
"We are very excited to begin this initial drilling program," stated Steven Plumb, Chief Financial Officer of Bering. "We expect to obtain the drilling permits in the near term and hope to be drilling soon after that. If these first four wells are successful then we expect this prospect to add significant value to our company and shareholders."
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