CALGARY, Oct. 30 /PRNewswire-FirstCall/ - Diaz Resources Ltd. (TSX:DZR) today reported that the Company has acquired, over the last three months, approximately 5,400 gross acres (2,125 net acres) in the Eagleford Shale play, located in Texas.
Diaz's acreage is on trend with the recently announced gas discovery by Petrohawk Energy Corporation and a large development program, operated by Apache Corporation.
On October 21, 2008, Petrohawk announced the successful completion of the STS #241-1H well that had an initial production of 7.6 MMcfd and 250 Bbls condensate per day.
Apache's investor presentation, released on October 23, 2008, which can be found on Apache's web site, confirmed that it has an ongoing program to evaluate the play and had drilled and completed four horizontal oil wells to date, with initial production rates of 170 to 345 bopd.
Diaz's acreage has numerous existing wellbores which Diaz believes can be re-entered, drilled horizontally and stage frac'd within the Eagleford Shale. The use of existing wellbores will significantly reduce the capital expenditures required for Diaz's development program.
Diaz is continuing to acquire additional acreage in the area and a development plan for the area is being prepared.
Diaz is an oil and gas exploration and production company based in Calgary, Alberta. Diaz's current focus is on gas and oil development and exploration in Alberta, Saskatchewan and Texas.
ADI Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
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