(MENAFN- ProactiveInvestors - Australia) Burleson Energy (ASX: BUR) has started drilling the horizontal section of its Truchard-2H development well in Texas that targets 7 billion cubic feet of liquids rich gas.
The Nabors 456 rig will drill and complete the 700 metre horizontal section, which will then undergo a six-stage fracture stimulation.
Independent analysis by Integrated Petroleum Consultants indicates that Truchard-2H should have cumulative production of 7 billion cubic feet of liquids-rich gas and 200,000 barrels of condensate over a 10 year life.
This will deliver US$53 million in revenue over the term of the well's life.
If successful, Truchard-2H will also pave the way for full development of the Heintschel gas-condensate field, which Burleson anticipates will be financed through a combination of project debt, farm-out and possible corporate joint venture.
Burleson has a 50% working interest and 1.13% over-riding royalty interest in the Truchard-2H well and Truchard unit.
The other partners are operator AKG Energy with 13.5%, Mogal Oil and Gas with 30% and other U.S. parties holding 6.5%.
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