Leor energy is a limited partnership that has assembled some acreage in Deep Bossier in East Texas, specifically in the Amarosa field.
They partnered with ECA in July 2005 to develop some of their holdings - ECA is the operating partner and is drilling the wells in exchange for a cut in the production - I think ECA gets 30%. Anyway the area is important because ECA holds a lot of their own acreage in Deep Bossier as part of the Tom Brown purchase. They have Amararosa holdings and other areas of Deep Bossier. They have been experimenting with horizontal drilling there. I have been a little confused because looking at their recent presentations they list East Texas as a resource play but also sometimes list Deep Bossier as a developing resource play, along with Niobrara, CRB, and a three or four others.
Anyway to cut to the chase, Leor did a press release today stating that their Amarosa Deep Bossier play has reached 200 mmcf/day on just the first 19 wells of hundreds planned. These are among the most prolific on land wells in a long time and they sound excited about the find. But ECA not only has a cut of their production but has huge holdings of their own. This adds another little piece of value (likely in Billions) to ECA if they have major East Texas acreage that can produce 10mm cf/d wells.
The flow rate of some of those completions is sure impressive. Three recent Leor completions are producing at rates in excess of 52 MMcf/d, 28 MMcf/d and 20 MMcf/d.
And that's for a single zone.
<<In addition, each of our three most recent wells have attractive sand packages up-hole from the currently producing zones, implying still higher production rates from these three already outstanding wells.">>
With potential for more???
EnCana must be pretty sure of this prospect too since they were willing to pay $243 million for 3360 acres in the Amoruso Field.
ECA has also 170,000 acres in the Deep Bossier play.
Sounds like another multiple of TCF's potential here alright.
HOUSTON--(BUSINESS WIRE)--Leor Energy announces that it has achieved a more than 10-fold increase in natural gas production in Amoruso Field in Robertson County, Texas, since last spring. During December 2006, gas production from Amoruso Field exceeded 90 MMcf/d gross. This milestone was a result of another in a series of successful Deep Bossier completions for Leor and its operational partner, a subsidiary of EnCana Corporation (NYSE:ECA - News). In July 2006, Leor Energy sold EnCana approximately 3,360 net acres in its Amoruso Field for $242.9 million.
Leor and EnCana continue to enjoy a 100 percent success rate in wells drilled in Amoruso Field. Each of their first 14 wells drilled in Robertson County, Texas are producing from Deep Bossier target sands and additional multi-zone completions are scheduled in four of those wells. One of Leor's best wells at Amoruso Field, completed in late June 2006, is still operating at a flow rate of approximately 30 MMcf/d from only one completed zone. Leor believes this well to be among the largest gas wells in North America producing from a single completed zone.
Commenting on the recent results, Guma Aguiar, Leor's CEO, said: "We have drilled some truly remarkable wells in the last 12 months, several of which rank among the most prolific of any gas wells drilled onshore in North America in recent history. In addition, each of our three most recent wells have attractive sand packages up-hole from the currently producing zones, implying still higher production rates from these three already outstanding wells."
New single-zone well in its Deep Bossier play produces in excess of 52 MMcf/d, making it among the largest recent finds in North America
HOUSTON--(BUSINESS WIRE)--Leor Energy L.P. is pleased to announce that gross gas production from Amoruso Field and its other properties in Robertson County, Texas recently surpassed 180 MMcf/d, which represents a doubling of production since February 2007 and a more than 25-fold increase since the spring of 2006. This dramatic increase in daily gas production is partially due to the excellent results of three recent Leor completions, which are producing to sales at rates in excess of 52 MMcf/d, 28 MMcf/d and 20 MMcf/d.
Title: Group Lead, Development (Deep Boisser) Location: Dallas, TX Job Number: Sector: Oil & Gas Occupation: Geology Education: Bachelors/Engineering, Geology, or equivalent
Description: The East Texas Team is seeking an experienced Reservoir Engineer or Geologist with a proven track record of accomplishments who desires to leverage his/her background within a dynamic, team-based rewarding culture. The Deep Bossier is one of the hottest plays in the US, as well as a key growth play for the company - EnCana has over 170,000 net acres in the play and well IP's range from 4 MMcf/d to 40+ MMcf/d. EnCana is strongly committed to the Deep Bossier program - it will be a significant portion of the 2007 capital program.