•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Sun River shale well has Haynesville, Cotton Valley potential

    By Oil & Gas Financial Journal staff

    On Nov. 30, Dallas-based Sun River Energy began drilling activities in compliance with the terms of its farmout agreement with Devon Energy Production Company LP, which Sun River initially announced on Oct. 27. The well, in Panola County in East Texas, is permitted to 12,000 feet in the Carthage Field to test the Haynesville Shale. The company expects to encounter commercially productive zones in the Travis Peak and Cotton Valley geological formations.

    On Oct. 21, Sun River, a development-stage oil and gas exploration and production company, announced plans to acquire a majority of the oil and gas properties of privately-held Katy Resources ETX LCC, which estimates its total proved reserves at 17 bcfe, for $5 million in cash and $3.5 million shares of the company’s stock. In addition to proved reserves, “3P” reserves are estimated at 89 bcfe and total potential resources are estimated at 270 bcfe. The company estimates there are an aggregate of 253 additional drilling locations in the leasehold assets to be acquired.

    The deal is expected to close on or before Dec. 31.

    Donal R. Schmidt Jr., Sun River’s president and CEO, said, “This acquisition allows [us] to begin generating revenue. It also allows us to add proved producing oil and gas assets at a very attractive discounted price. We estimate the cost of acquiring proved reserves in this transaction at less than $0.70 per Mcf of natural gas, which we believe is significantly less than the finding and development costs that would be incurred to replace the reserves.”

    Sun River also holds assets in Angelina, Cherokee, Houston, and Panola counties in East Texas. The geological pay packages overlaying the leases cover the Woodbine, the Pettit, the James Lime, the Travis Peak, the Cotton Valley, and the Haynesville/Bossier formations. The company expects to see EUR from 1.5 bcfe to 2.5 bcfe on average, per vertical well. In addition, Sun River will look for opportunities for selective horizontal drilling on an in-fill basis.

    Most Popular

    Related Articles

    Navitas updates on Eagle Ford agreement

    11/21/2014 Navitas Midstream Partners LLC has executed a long-term, fee-based agreement with an investment-grade independent producer to provide gathering and processing services in the northern Eagle Ford sh...

    ETP plans new facilities, systems in Eagle Ford and Eaglebine areas

    11/06/2014 Energy Transfer Partners LP has entered into additional long-term gas gathering and processing agreements with producers in the growing Eagle Ford and Eaglebine production areas of south and southe...

    KKR partners to develop East Texas Eaglebine

    10/29/2014 KKR has become a non-operated working interest partner with Anadarko Petroleum Corp. in the development of Anadarko’s acreage in the Eaglebine play located primarily in Brazos, Burleson, and Robert...

    New Gulf Resources adds to management team

    10/03/2014 New Gulf Resources LLC (NGR) has hired two new members to augment its management team. Danni Morris, former treasurer of WPX Energy Inc., will become NGR's CFO, and Michael Brown, former vice ...

    Eagle Ford update

    09/10/2014

    EOG Resources remains largest acreage holder

    Hawkwood Energy acquires assets in East Texas

    07/03/2014 Hawkwood Energy LLC, an independent upstream oil and gas company, has acquired producing and non-producing assets in Brazos, Leon, Madison, and Robertson counties, Texas. These assets establis...

    More Oil & Gas Financial Articles

    Navitas updates on Eagle Ford agreement

    Fri, Nov 21, 2014

    Navitas Midstream Partners LLC has executed a long-term, fee-based agreement with an investment-grade independent producer to provide gathering and processing services in the northern Eagle Ford shale play in Brazos and Grimes counties, Texas.

    ETP plans new facilities, systems in Eagle Ford and Eaglebine areas

    Thu, Nov 6, 2014

    Energy Transfer Partners LP has entered into additional long-term gas gathering and processing agreements with producers in the growing Eagle Ford and Eaglebine production areas of south and southeast Texas. To facilitate these agreements, ETP has begun construction on two new cryogenic gas processing plants and additional gas gathering pipelines.

    KKR partners to develop East Texas Eaglebine

    Wed, Oct 29, 2014

    KKR has become a non-operated working interest partner with Anadarko Petroleum Corp. in the development of Anadarko’s acreage in the Eaglebine play located primarily in Brazos, Burleson, and Robertson counties, Texas.

    New Gulf Resources adds to management team

    Fri, Oct 3, 2014

    New Gulf Resources LLC (NGR) has hired two new members to augment its management team. Danni Morris, former treasurer of WPX Energy Inc., will become NGR's CFO, and Michael Brown, former vice president of geology with Sandridge Energy Inc., will be NGR's senior vice president of geology and geophysics. 

    Eagle Ford update

    Wed, Sep 10, 2014

    EOG Resources remains largest acreage holder

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ