Your point is valid. The Edwards was their primary target. Way back when they did the seismic survey (years ago) over the surrounding areas, they were targeting the Edwards. They originally leased the best Edwards land. Since then a couple of things have changed, gas prices are low and the Eagleford Shale has attracted a lot of interest from large players, many EFS wells have been drilled and are proving commercial (even in the current price environment). AZZ are actively acquiring land for its EFS potential (based on their seismic).
They are obviously keen to fully evaluate their acreage (future options) and if the Edwards produced prolifically they may have produced from it now, but it didn't so they moved on to what was likely to be their best chance of a commercial outcome...........The EFS is now their primary target!!
We are hoping that FD2 proves that this part of the field has the highest condensate content thus making it the most commercial? At this stage we are chasing condensate more than dry gas.
Go AZZ!
Regards, Whippet
AZZ Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
