edwards limestone

The following is information from Paxton energy inc

The edwards formation was dicovered in 1959 by Pan American Petroleum Corporation.Pan American drilled and completed three gas wells in the edwards limestone formation at 10,200ft.All three wells are still producing today.

In 1993,Bayshore entended the field to the east,drilling and completing 3 additional gas wells.

All six wells are still producing today.

Prospect at a glance.

1)Historical production from the edwards formation on Cooke Ranch (La Salle county) is over 18bcf since 1960.(6 wells)

2)Average production per well is in excess of 3bcf.

3)Initial gas flow rates per well of 1.5mmcf of gas per day.

4)Average mean production of 350mcfgd over 30 YEARS.
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This data is from La salle county,and we have no data for completions although I would asume verticle wells with possibly an acid stimulation.

The point I am making is , Dont expect flow rates inexcess of 2mmcfgd from this well on verticle production.

On a field development of 20 wells using the average production rate over 30 years of 350mcfgd,that is 7mmcfgd from the entire field.Antares gross share of 5.25mmcfgd minus all the costs.

At current gas prices of $3.2m per bcfg,this would give antares cashflow of about $6m minus substancial costs over a 30 year period.

Fortunately the wells will produce significantly higher flows over the initial 1-3 year period.Secondly it will take at least 3-5 years to drill 20wells.Thirdly the gas prices will recover as the world economy recovers.

The well results we will receive over the next few weeks are from the edwards formation.Dont expect massive flow rates as you will be disappointed.

Make no mistake the big driver in the increase of production and share price growth IS the eagleford shale.

All the best.