Heintschel Field
(BUR working interest 38%)
The Heintschel Field was discovered by Burleson and its partners in April 2010. Heintschel #1 encountered a thicker hydrocarbon column covering a larger area than expected in Wilcox sands. Two successful appraisal wells on the Heintschel field were drilled (D. Truchard #1 and Heintschel #2). The Wilcox sand reservoir is tight and requires fracture stimulation. All three wells are on production.
Reserves/Resources
Reserves
In late 2011 DeGoyler & McNaughton (D&M) completed a reserves study for the field and attributed 2P reserves to the field of 34 Bcf “wet gas” (contains NGL) and 1 mmb condensate. This equates to 30 Bcf of dry gas and 2.5 mmb of liquids (condensate + NGL). This means BUR’s share for its 38% Working Interest is 2.9 mmboe and 2.3 mmboe for its NRI share (30% after royalties).
Resources
D&M used conservative assumptions to generate In Place volumes for the whole field of 124 Bcf of wet gas and 3.6 mmb of condensate. These equate to 111 Bcf of dry gas and 9.2 mmb liquids. To determine recoverable volumes these numbers are multiplied by D&M’s recovery factor of 65% = 80bcf and 2.3mmb. BUR’s share is > 6mmboe (WI).
BUR and operator AKG believe the field could contain over 160 Bcf of gas plus liquids, recoverable.
Horizontal well proposal: In their calculations D&M assumed vertical wells. Specialist consultant IPT modelled horizontal wells with multiple, staged fracs and predict that they would produce at several times the rates and total volumes of existing vertical wells. Assuming this scenario, the Heintschel field can be fully developed with excellent financial returns.
Next steps:
1. 1Q 12: Drill a horizontal well with multiple, staged fracs. This is planned for late Q1, 2012.
2. Generate a full field development plan – to be completed by end of June 2012.