Burleson Energy (BUR)

Shares / Stock Code

BUR

Stock Exchange / Sharemarket

Australian Securities Exchange

Burleson Energy Limited (BUR) is an Australia-based company which is engaged in exploration of petroleum and gas properties in the United States. The Company has five chalk wells on production. It operates in two geographical segments, Australia and the United States. The Company holds a 40% working interest in various Burleson County leases, which cover parts of the Giddings oil and gas field. During the fiscal year ended June 2009 (fiscal 2009), the well produced a total of 65.4 million cubic feet of gas and 2190 barrels of condensate. Its subsidiaries include Burleson Energy Holding Inc, Burleson Energy Inc, Burleson Energy General LLC and Burleson Energy Limited LLC. In July 2008, the Company acquired a three dimensional (3D) seismic data programme in the prolific Texas Gulf Coast, which is surrounded by cumulative production totaling greater than 500 billion cubic feet of gas.

The Company has a 40% working interest in the various Burleson County leases known collectively as the Burleson Properties. The leases cover a total of 8100 net acres located in the southern part of Burleson County in Texas in the USA, all located within the Giddings oil & gas field with the main reservoirs being the Austin Chalk and Georgetown Formations.

Burleson Energy also has a right to participate at cost in all leases acquired by AKG Energy, with a nominal total of 10,000 net acres targeted within an Area of Mutual Interest (“AMI”) in Burleson County. Historically, wells drilled into the Giddings Field have a high probability of finding hydrocarbons. The critical factor will be whether flow rates and ultimate recoveries per well will be sufficient to generate an acceptable rate of return on investment.

Burleson Energy: Brazos Property

This single well will target three reservoirs (Austin Chalk, Buda and Georgetown Formations) in Brazos County in leases covering 487 acres. This location is essentially an infill location. It was identified and made possible by the fact that AKG held a significant acreage position with production from a shallower well, which is surrounded by productive Austin Chalk, Buda and Georgetown wells. Like in the Champions wells, BUR will pay 20% to earn a 17.5% WI, This well, the Weir 1, will be drilled as part of the Burleson County drilling campaign in the latter part of 2007.

Burleson Energy: Giddings Field

Austin Chalk production began in the Giddings Field in 1960 with the City of Giddings #1 well in Lee County. Giddings Austin Chalk drilling began in earnest after 1973 when this abandoned well was re-completed with an acid job and began flowing over 350 bbl/day. It has since produced over 600,000 barrels of oil. This established the chalk as a fractured reservoir play, and it was soon determined that fractures could be located with seismic data. A drilling phase of about 4,400 vertical wells ensued through to December 2005, where the chalk has produced 772 million barrels of oil and 4.8 trillion cubic feet of gas. The Giddings Field dominates the region, accounting for 65% of the oil and 75% of total production from the trend.

In 1988 new life was given to the Giddings Field with the advent of horizontal drilling technology. This enabled industry to drill horizontally through vertical fractures in the gently dipping chalk and thereby intersect more fractures in a single wellbore. This led to some extremely prolific horizontal wells, commonly in areas already densely drilled by vertical wells.

Production occurs from 6,000 feet to 15,000 feet, and is predominantly gas below 9,000 feet and oil above. The target depths for the Burleson Properties wells will be in the range of 9,500 feet to 11,000 feet. Both the Austin Chalk and Georgetown Formations are gently dipping, fractured carbonate reservoirs with near-vertical fractures. This makes them ideal for low risk development by horizontal drilling.

About 45% of the Burleson Energy's Giddings Field oil and 66% of the gas have been produced from 2,100 horizontal wells drilled since 1988. Sweetspot wells have produced 57% of the oil and gas in this field from only 15% of the wells. Access to the Giddings Field is excellent. The topography generally consists of low rolling hills, in a rural setting with numerous roads. Pipeline access is also very good and there is ample excess capacity in systems currently in place.

Burleson Energy (BUR) Products and Services

  • Oil and gas exploration

Burleson Energy (BUR) Locations and Subsidiaries

Burleson Energy Head Office
11 Rodborough Ave,
CROWS NEST, NSW 2065

Phone: (02) 9450 2002
Fax: (02) 9986 1753

Burleson Energy (BUR) Share Price

Submitted by ASX Listed Company on 4 March, 2010 - 01:38

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