RESUMPTION OF DRILLING, ONSHORE TEXAS (ASX: BUR) Burleson Energy is pleased to advise the imminent resumption of drilling activity in its Colorado County, onshore Texas, project area. Two wells are planned: 1. The first will be an exploration well targeting an independent Wilcox structure several alternative highly prospective targets are available, and a decision on the actual target will be made shortly. 2. The second will be a Heintschel #2 appraisal well (contingent to a degree on the results of the Heintschel #1 frac). The reason for the change in plans is that frac equipment remains in short supply, and the anticipated mid-September frac of the Heintschel #1has come and gone. In that regard, BUR advises that a firm frac date for the Heintschel #1, of November 26, has now been committed - but an earlier slot is possible. The frac will provide vital data regarding the viability of, and how best to develop, this potentially large resource of 60 Bcf +30 Bcf of gas plus 1 mmb +0.5 mmb of condensate. BUR and AKGs preference is to secure these data before proceeding with development drilling. The above drilling timetable allows sufficient time for a Heintschel #1 frac to occur and to assess the results before Heintschel #2 is drilled. Both offset development and appraisal drilling locations are currently being prepared on the Heintschel structure. ABN 73 117 770 475 Burleson Energy Ltd Registered Office / Administration Level 6 9 Barrack Street SYDNEY NSW 2000 Australia Mailing Address GPO Box 92 SYDNEY NSW 2001 Australia Phone: +61 2 8252 6177 Facsimile: +61 2 8252 6178 www.burlesonenergyltd.com Page 2 There are several candidates for the next Wilcox exploration well including: Recently identified Wilcox prospects with potential for ~10 Bcf of gas and 0.3 mmb condensate (BUR WI 36%) WH 4 Wilcox prospects in Wharton County in additional acreage acquired in Jan 2010 have potential for 41 Bcf gas (BUR WI 36%). Moeller prospect is located 53m updip of the Moeller 1 well which encountered good hydrocarbon shows but apparently in a gas water transition zone. The up dip location has the potential to contain 10.4 Bcf gas and 0.24 mmb condensate (BUR WI 38%). The operator AKG has commenced sourcing a suitable rig to drill two wells, with drilling expected to commence within 4 to 8 weeks weeks. The new well(s) will also require fraccing. Note that AKG has six previous bookings with frac units, so it is possible that two (or more) wells could be fracced in sequence. An updated investor presentation, including updates on other BUR wells, will be released to the ASX, and uploaded to the BUR website, shortly. For further information, please contact:
BUR Price at posting:
7.1¢ Sentiment: None Disclosure: Held
