Michael Garland, CEO of Maverick, said, "We are most excited to announce these two substantial additions to our project portfolio in the same week as we announced the important Whitewater project in Colorado. The Turner Ranch and La Escalera Ranch projects also represent excellent examples of the type of lower risk domestic opportunities we seek which can be enhanced through the application of technology and innovative techniques. In both these projects we intend to deploy patented drilling technology which is designed to establish higher production rates and reserves per well at substantially the same levels of risk as when using more established techniques."
THE TURNER RANCH PROJECT
The Turner Ranch Project is located on 9,400 acres west of the town of Carlsbad, in a region of Texas' prolific Permian Basin referred to as the Eastern Shelf. The project is east of the large Foster-Conger and Sugg Ranch Fields, which produce from the same Canyon Sand Reservoirs that are being targeted in the Turner Ranch Project, in which Maverick Turner-Escalera will have a net working interest of approximately 8.5%. Initial drilling on the project will consist of extending field development proved locations from existing adjacent wells. This program will validate proved undeveloped (PUD) locations. The western portion of the project is covered by 3-D seismic data, and a secondary phase of development will extend onto the remaining untested portion.
Historically, the Canyon Sands have produced along the southern portion of the Eastern Shelf. The traditional means of completing these wells has been to perforate and "frac" individual sands after the well casing has been cemented. However, Maverick and its partners have developed a technique of testing and completing the wells without having cement come into contact with the producing formations. This open hole completion technique is performed with a series of patented down-hole sliding sleeve tools. Maverick believes that this will allow each individual sand in the well to be tested, acidized and fraced and then commingled to establish higher production rates and reserves per well than the average 0.5 BCF per well that has been traditionally averaged in the Eastern Shelf. Deploying the sliding sleeves also allows the zones to be retreated over the years to reestablish higher rates, potentially extending the life of the wells to over 20 years.
Maverick anticipates that approximately 150 wells can be drilled in the existing project acreage that could yield potential gas reserves of 1 BCF per well and total gas reserves of 150 BCF in the project, or gas reserves net to Maverick's interest of approximately 12 BCF.
THE LA ESCALERA RANCH PROJECT
The La Escalera Ranch Project is located on 4,800 acres, with an opportunity to expand to over 50,000 acres, in Southern Pecos County Texas, in the Val Verde Basin and near the Elsinore Ranch and Oates gas fields. Maverick Turner-Escalera will have a net working interest of approximately 15% of the project, whose objectives are lower Permian-aged Wolfcamp sands which are encountered from depths of 7,000 to 9,000 feet.
Maverick expects to drill its first well in the project on the eastern side of the Elsinore Ranch field. The Wolfcamp sands have many of the same characteristics as the Canyon sands objectives at Turner Ranch, such as have been found at the Pakenham field 30 miles east. Average wells in the Pakenham field produce 4 BCF using conventional completion together with frac technology.
Maverick believes that the same sliding sleeve completion and stimulation techniques used at Turner Ranch will provide ultimate recovery for the reservoirs at La Escalera at least as high as the Pakenham field. Successful wells are anticipated to produce from 2 to 4 BCF per well. Current plans anticipate drilling as many as 50 wells on the initial project, which could recover potential gas reserves of 100 BCF or 15 BCF to Maverick's net interest, with the potential for much greater reserves in the additional potential acreage.
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