Best Energy to Expand Footprint in Eagle Ford Trend
Best Energy will shortly launch its efforts to expand into the Eagle Ford trend of South Texas and intends to have several of its rigs running in the trend by the end of November. Best Energy views the Eagle Ford as a primary growth area for the Company over the next several years.
The Eagle Ford Shale, located in South Texas, is an emerging shale opportunity with very promising early results. The Eagle Ford trend is now estimated to cover all or portions of over 15 counties in South Texas and produces from depths of between 4,000 and 12,000 feet. EOG Resources has called it "the sixth largest domestic oil discovery in U.S. history." It estimates that the fields contain over 900 million barrels of recoverable oil. Industry forecasts for potential production three years out now exceed 30,000 barrels per day of oil and natural gas liquids and over 1 billion cubic feet per day of natural gas. In addition to EOG, significant oil and gas producers within the Eagle Ford Shale include: Anardako, Apache Corp., BP, ConocoPhillips, Petrohawk, Swift Energy, Exxon-XTO, Pioneer, Chesapeake Energy, Shell and Goodrich. Several of these companies are already customers of Best in the Hugoton Basin.
Mark Harrington, Chairman and CEO of Best Energy Inc. stated, "Six months ago we identified this trend as holding the promise of being the preeminent source rock play for the next several years. At that time, there were less than 20 drilling rigs in the area. Today, that number has more than doubled to an estimated 50+ rigs. A single drilling rig can typically support 2+ workover rigs." Mr. Harrington continued, "We will be using the same strategies that anchor our activities in the Hugoton, where we have grown to be the 'First Call' for more than half the Basin’s operators. This formula is simple and well tested; safety first, value pricing for our customers and skilled crews which provide the best on-job performance. We look forward to servicing the South Texas divisions for our existing customers, as well as solidifying new relationships we have been cultivating for the past several months." He concluded, "If we are successful in developing this market, we could readily have 10+ rigs servicing our South Texas customers within the next year. Having doubled our revenues over last year, successful execution on this project holds the promise of continuing that momentum through 2011."