Southern Bay Preps for Fracking Ops at Fayette Well

Eureka provided an update on drilling at the Blackjack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on-shore Texas USA. As per the latest Operator reports, the well has successfully reached a Total Depth of 16,680 ft, and has been subsequently cased and cemented in preparation for fracking operations.

Mr. Ian McCubbing, Chairman of Eureka stated that, "We are very pleased to have reached this key milestone with the well, and look forward to the fracking operations being undertaken which will provide us with important productivity information in the Pan de Azucar acreage. This is a significant step in the Company's appraisal and development strategy for what is its first exploration activity outside of the Sugarloaf AMI."

The well which was drilled by the Operator, Southern Bay Operating, LLC, a wholly-owned subsidiary of GeoResources Inc., achieved a horizontal section of approximately 6320 ft., and was drilled through the main target zone of the Eagle Ford Shale in accordance with the drilling plan.

The fracture stimulation operations are expected to be undertaken within the next few weeks, immediately after the Operator has completed fracture stimulation operations on its two Flatonia wells located less than 10km south west of Eureka's Pan de Azucar area.

The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.


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