Australian oil and gas developer, Austin Exploration Limited, announced a major addition to its exploration, development and production portfolio with the acquisition of 731.88 acres (2.96 km2) of oil and gas mineral rights inside one the most productive fields in the United States.
The new acreage is located in the historic Giddings Field which the U.S. Energy Information Administration (EIA) has ranked as one of the country's top oil and gas fields, with oil production of 7.1 million barrels and gas production of 94.6 BCF (Billion cubic feet), predominately from the Austin Chalk formation.
The initial lease acquired by the company is part of a larger geographic resource play that has recently seen a significant increase in drilling activity, due in large part to the size of the resources made available in the Eagleford oil shale.
"The Giddings Field has been the incubator of many new ideas and technological improvements to oil field technologies that have transferred to other oil fields around the world. It is the largest oil field found in Texas during the last fifty years. Technologies and procedures such as Acid Treatments, Large fracture Treatments, Seismic, Horizontal Drilling, Multilateral Wells, and Underbalanced or Controlled Pressure Drilling, work together as a drilling and completion system to make the Giddings Field a hotbed of activity. We plan to utilize some of the same locally experienced drilling operators and follow the same proven well re-entry and completion processes for our leased acreage," Austin's Managing Director, David Schuette, said today.
Austin Exploration has named this new project the Moses Austin project. Austin was a resident of the area and is considered by many to be the father of Texas. The Moses Austin project will begin by re-entering one of the five existing wells on the property and deepening it. The company will pass the already drilled and produced formations of the Austin Group to explore the Eagleford, Woodbine and Washita Group which contains among others, the oil and gas producing Buda and Georgetown formations.
The vertical drilling re-entry program is anticipated to begin this calendar year. The Giddings Field extends from Mexico through Central Texas and into Northwest Louisiana.
Austin maintains Net Revenue Interest of 78.3% in this project.
Why the Giddings Field?
The Eagleford Oil Shale, Buda and Georgetown formations present in the Giddings Field are gently dipping, fractured carbonate reservoirs with near-vertical fractures. This makes them ideal for low risk development through vertical and horizontal drilling.
Oil and Gas Pipeline infrastructure is also easily accessible and there is ample excess capacity in the systems currently in place.
Numerous paved roads deliver excellent access to the Giddings Field and the surrounding downstream infrastructure.
Existing hydrocarbon production in the area makes acreage acquisition and drilling opportunities very attractive.
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