Friendly Energy Exploration, an oil and gas E&P developer with a keen emphasis on low-cost recovery in Texas and Oklahoma via undeveloped reserves with minimal downside risks and substantial upside, recently reported that the company would be re-entering several dormant wells on the Byler Lease in TX's Brown County.
This comes quickly after the March 5 announcement regarding the company's expansion in South Texas as part of its ongoing bid to research and develop regional resources while solidifying the company's footprint in the state. Having picked up key leases in San Patricio County with extant producing wells and several shallow opportunities to test additional formations, FEGR looks forward to tackling some of them sub 3k-foot formation zones for oil production.
With oil and gas leases on some 2,000 plus acres in central Texas (some 48 producing or shut-in wells), 1,100 of which are in defined oil/gas fields, the company is eager to access the several proven zones and in-fill drilling opportunities available. Five choice vectors are in the view for advancement amid an obviously high-energy oil market, and FEGR is beginning to draw increased attention from investors.
Seven major formations are currently being targeted via the acreage footprint and the abundant in-fill potential across all the leases; combined with prime Barnett Shale potential via emergent technologies means FEGR has a very strong hand to play. With the 1,200-2,700 foot Caddo Limestone, Fry Sands, Gray Sands, and Marble Falls formations, as well as the Chappel Reef wells (roughly 2,300 feet) and Ellenberger (2,600 feet) all inside comfortable striking distance, FEGR is very excited to aggress choice formations accessible via their leases.
Breaking down the overall acreage position it is easy to see why FEGR's regional strategy is drawing so much attention, as the company has amassed a considerable position that benefits a great deal from the organic-rich Barnett Shale in the Bend Arch-Fort Worth Basin area:
• Byler - some 372 acres, just over half of which is Fry Sand oilfield defined, with 11 Fry Sand wells, 4 Marble Falls Limestone, and two injection wells; potential to punch through on some of the Fry Sand wells to Caddo/Marble Falls targets and the company plans to re-work five Fry Sand and two Marble Falls Limestone wells
• Panther Creek - some 115 acres mostly defined in Fry Sand oilfield, with 9 Fry Sand wells and a remaining four on injection or water supply service, full infrastructure completed with a 630-barrel tank farm and abundant potential to expand the announced re-entry, taking the water supply well towards a Marble Falls Limestone well or Barnett Shale target
• Mud Creek - some 355 acres, again just over half in Fry Sand, plenty of in-fill opportunity with eight formerly producing wells plugged
• Hutchins Creek - The Hutchins #1, drilled back in 1983 as a Wildcat, punched through three high-potential zones into a hydrocarbon formation un-encountered by any other well in Brown County, and discovered the Chappel Reef (some 319-feet thick), a high-pressure gas producer which did 600MCF/day when it went online and 30MCF/day 12 years later when it was shut down due to financial difficulties. It was never developed as an oil well and the lower zones haven't really been poked at since. In addition, four shallow Gray Sand wells had been drilled on the lease and the in-fill drilling opportunities here abound
• South Thrifty - with 180k barrels and 4.1B cubic feet of gas produced since it was opened in the 1980s, and elements like the Hunt A-1 which when spud in 1988 flowed in excess of 792 barrels/day; currently has four tank batteries on site and 24 wells (one of which is a water injection)
A geological and reserve assessment from five years ago on the South Thrifty indicated that the Chappel Reef could contain a minimum 2-7M barrels of recoverable oil. Barnett-sourced hydrocarbons which migrated west into South Thrifty are a strong indicator of the regional potential and the company is quite eager to move forward on its enviable acreage position in Texas.
Brent crude climbed over $125/barrel Friday, Mar 16, spurred on by Iran throughput concerns and a weakening dollar making further easing an almost foregone conclusion. It is not hard to understand the growing appetite for commodities, with China still showing strong demand despite having cut their growth target to an eight-year low recently. Putting a great deal of effort into bolstering consumer demand in 2012, China will be oil-hungry for the foreseeable future and the implications for domestic producers like FEGR are obvious; opportunity is knocking.
For more information on Friendly Energy Exploration, please visit the company's website at: fegr.biz
Please see disclaimer on the QualityStocks website: disclaimer.qualitystocks.net