Eagle Ford shale

New Standard’s Eagle Ford acreage is situated in Atascosa County, Texas and is largely located within the regional Eagle Ford shale play with the primary targets being the Eagle Ford shale and Pearsall Shale Formations.

Well locations within the Atascosa permit area

Well locations within the Atascosa permit area

The Eagle Ford Shale was first recognised as a major natural gas play, but is now being considered the sixth largest oilfield discovery in the United States and is a significant contributor to the exponential increase in Texas crude oil production that has occurred over the last few years.

The Pearsall Shale is a gas bearing formation near the Texas-Mexico border and within the Maverick Basin that underlies the Eagle Ford Shale and provides a secondary target across Atascosa County where the Alright and Peeler Ranch prospects are located. The formation was recognised for its hydrocarbon potential before the Eagle Ford development truly kicked off. It is anticipated that exploration in the play will increase as natural gas prices rise to a level that warrants activity. The play does have liquids potential east of the Maverick Basin and is in the wet gas window over Atascosa County.

The Alright and Peeler Ranch prospects are located within the oil window of the Eagle Ford Shale Play. The gross acreage of the Alright Prospect is approximately 5,395 acres (21.56km²) and the gross acreage of the Peeler Ranch Prospect is 1,895.25 (7.7km²). Both are located in the south western part of Atascosa County, within 17 kilometres of each other.

Additional well locations in the Atascosa permit area - Peeler Ranch prospect

Additional well locations in the Atascosa permit area – Peeler Ranch prospect

A large portion of the acreage is currently undeveloped and up to fifty-five additional well locations have been identified for development drilling, providing low risk, low cost appraisal and development opportunities with short term cash flow benefits for New Standard.

New Standard, alongside strategic alliance partner Magnum Hunter Resources Corporation (NYSE:MHR) has already commenced additional drilling activities since obtaining the acreage in January 2014.