Fairchild International Begins Texas Drilling Program

Fairchild International will begin drilling the initial test well at the Manahuilla Creek prospect in Goliad County, Texas next week.

Heavy precipitation throughout the Texas Gulf Coast region over the past month, has impacted site preparation and the mobilization of the drill rig. Site preparation is now complete but reasonably dry ground conditions are required to accommodate the heavy equipment. Although current weather forecasts call for relatively dry conditions in the region, additional heavy precipitation could create other unexpected delays.

The Manahuilla Creek prospect is a proposed drilling area targeting the expanded Yegua trend which is a prolific over pressured gas-condensate trend in the Middle-Eocene of the onshore Gulf Coast Basin. Total gas production to date in this formation exceeds 800 bcf (billion cubic feet) with an estimated ultimate trend recovery close to 2 tcf (trillion cubic feet).

Several fairly prolific fields have been discovered and exploited in Goliad county, two of the most recent being the Jobar field and the Perdido Creek field. The Jobar field is located in a normal pressured Yegua sequence. Recoverable reserves in this field are 900 mcf/ac.ft. (1000 cubic feet per acre foot). The most prolific well has produced 1.8 bcf to date and had maximum production rates of 5000 mcf/d (1000 cubic feet per day). The Perdido Creek field is down dip and geopressured with bottom hole pressures of 3600 psi at 5600 feet. Recoverable reserves in this field are 1100 mcf/ac.ft. Initial production rates are approximately 2000 mcf/d with cumulative production in one well over 1.7 bcf.

The Manahuilla prospect is located on a downthrown fault block from the Perdido Creek field. The amplitude characteristics of this series of sands look identical to the Jobar and the Perdido Creek fields with the exception that it is much more extensive in area. The prospect covers over 1200 acres 4 miles to the south of the Perdido Creek field. The Yegua sands occur at 6150 feet to 6500 feet. Independent estimates indicate that gross gas reserves are between 96 to 150 bcf with gas reserves per well at 19.2 bcf.

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