News: New Standard Energy to spud three Eagle Ford Shale oil wells in Texas

New Standard Energy (ASX:NSE) expects to soon spud three Eagle Ford Shale wells at the Atascosa Project in Texas that will feature longer laterals and higher proppant concentrations to increase oil production rates.

In addition, the company and strategic partner Magnum Hunter Resources Corporation (NYSE:MHR) have reduced drilling and completion costs to US$6.5 million from US$8.5 million.

Magnum Hunter is an experienced Eagle Ford Shale operator, having drilled sixty wells in the highly prospective unconventional oil and gas play.

The company noted that analysis of multiple analogous wells within a few kilometres or contiguous to its acreage had revealed that recent wells were hydraulically fractured using much higher proppant concentrations.

This results in significantly higher initial and sustained oil flow rates. The rate of production decline was also unaffected by the initial higher production levels, so cumulative production was considerably higher.

The new well locations are being permitted and built and the drilling rig is scheduled to arrive in mid-October.

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