Eagle Ford Shale
Strike has built up a substantial acreage position in the highly sought after Eagle Ford Shale. Our leases are largely located within the Eagle Ford gas / condensate fairway and a major evaluation process is underway to demonstrate the technical and economic potential of our acreage position.
Strike's Eagle Ford Shale Highlights
• 27.5% working interest in the Eagle Landing Joint Venture
• More than 32,000 gross acres (over 8,500 net acres) of Eagle Ford Shale leases
• Hydrocarbon recovery proven by successful nearby wells
• Major evaluation program underway and development drilling planned for H1/2012
• Close to gas pipeline infrastructure, allowing rapid realisation of revenues
Strike's Value Creation Strategy
The Eagle Ford Shale has rapidly emerged as the USA’s most exciting hydrocarbon play. Breakthroughs in horizontal drilling and extraction technology mean that previously trapped gases and liquids can now be economically recovered from shale formations. The Eagle Ford is uniquely prized due to the high liquids content of its shales and resulting superior economics. With gas : oil ratios (GOR) often below 10 Mcf/bbl, many Eagle Ford operators earn 90% or more of their revenues from higher priced liquids and due to the extensive Texas pipeline network, Eagle Ford wells can be tied-in to gas markets almost immediately.
Strike has a 27.5% working interest in the Eagle Landing Joint Venture that has built up a substantial 32,000+ acre position within the Eagle Ford Shale. Joint Venture leasing activity is ongoing and is focused upon the gas / condensate fairway within Fayette and Lavaca counties.
Strike’s 8,500+ net acre position has been significantly de-risked by the successful completion of a number of Eagle Ford wells in the vicinity of our lease areas. For example, Southern Bay’s nearby Flatonia E 1H and 2H wells had initial production rates above 1,200 barrels of oil per day. A major evaluation program is now underway to assess the productivity of Strike’s Eagle Ford Shale. The program will form the basis for future development drilling, which we expect to commence in H1/2012.
The acreage values of Eagle Ford Shale have increased significantly with the entry of international majors such as BHP Billiton, Marathon and CNOOC. A number of large acquisitions have completed at USD 15,000 – 25,000 / acre valuations. Strike’s strategy is to prove-up the technical and commercial potential of our Eagle Ford Shale and to achieve a similar re-rating of our acreage position.