Grand Gulf Energy acquires 1,075 Gross Acres in Eagle Ford

Grand Gulf Energy (ASX: GGE) announced that it has secured 881 net acres of 1,075 gross acres (440 acres net to GGE) in Burleson County, Texas as part of a 50/50 joint venture with a Texas oil and gas private company.

There is significant drilling in Burleson County by companies such as WildHorse Resource Development (WildHorse) and Lone Star Resources. Recent results continue to outperformed previous Eagle Ford type production curves with >80% of current wells yielding EUR estimates of over 91 boe/ft of horizontal well section.

In the September quarter 2017, WildHorse brought online 27 Eagle Ford and one Austin Chalk horizontal wells. Of the 27 Eagle Ford completions, the Jurica/Doughtie wells, flowed at IP30’s of 674 boe/d (96% oil) and 785 boe/d and these are within 10 miles of the JV acreage

The acreage secured by GGE is concentrated in an area with thicker Eagle Ford and in existing production units. The JV has also focussed on areas with carbonate rich rocks combined with high gravity oil and high pore pressures all of which enhance likely well recoveries. Modern completions have generated very attractive results and the acreage providesthe opportunity to drill and complete laterals in 4 intervals being the Austin Chalk, Buda, Georgetown and Eagle Ford. The acreage acquired to date provides 3 drilling locations each with capacity for laterals of 5,000-7,000ft. With these 3 locations it is anticipated that 3 Eagle Ford and 1 Austin Chalk wells could be drilled.

The JV’s strategy is to finalise the rental of a small number of leases and secure a drilling operator to drill and frac a lateral well. Total drilling costs (drilled and completed) are anticipated to be US$4,500,000 per well. GGE will farm-down its interest to a manageable economic level as part of any work program.

The Company has spent ~US$550,000 in leasing costs.


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